MANILA, Philippines – The Bangko Sentral ng Pilipinas is reducing the amount of reserves that banks need to hold against deposits, but maintained that the move does not signal a shift in monetary policy.
This brings the RRRs of universal and commercial banks as well as non-bank financial institutions to 9.5%, digital banks to 6%, thrift banks to 2%, and rural banks and cooperative banks to 1%. By setting the RRR, central banks can influence the amount of money that banks can lend out and, consequently, the overall money supply in the economy. When the RRR is increased, banks are required to hold a larger portion of their deposits in reserve, which reduces the amount of money available for lending and slows down the growth of money supply. Conversely, when the RRR is lowered, banks have more funds available for lending, which can stimulate economic activity and increase money supply.
The central bank noted that this adjustment is in line with its ongoing efforts toward a “more active and flexible approach” to liquidity management through market-based monetary operations.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
PH reserves steady at $101.3 BPhilippines’ gross international reserves (GIR) stood at $101.296 billion as of end-May, lower than the previous month’s $101.760 billion, based on Bangko Sentral ng Pilipinas (BSP) data. | ManilaBulletin
Source: manilabulletin - 🏆 25. / 51 Read more »
BSP to allow pre-termination of peso NDFsThe Bangko Sentral ng Pilipinas (BSP) will soon allow the pre-termination of peso non-deliverable forwards (NDFs) as part of ongoing amendments of its foreign exchange (FX) regulations. | ManilaBulletin
Source: manilabulletin - 🏆 25. / 51 Read more »
Mayor Olivarez dances Zumba during 'Sayaw Galaw para sa Healthy Pilipinas' awarding ceremonyParañaque City Mayor Eric Olivarez showcased his own dancing skills during the awarding ceremony for the “Sayaw Galaw para sa Healthy Pilipinas: Iwas Bilbil, Ehersisyo para sa Empleyadong Parañaqueño' program. ManilaBulletin
Source: manilabulletin - 🏆 25. / 51 Read more »
Cebu’s Pogoy, Fajardo among Gilas Pilipinas pool for 2023 Fiba World CupRoger Pogoy from Talisay City, Cebu is among the 21-man Gilas Pilipinas pool for the Fiba World Cup 2023 in August. This is his message to aspiring players who want to make it to the National Team. CDNDigital READ:
Source: cebudailynews - 🏆 8. / 71 Read more »
Rappler Talk Entertainment: The reigning queens of Binibining Pilipinas 2023We chat live with Palawan’s Angelica Lopez, Bataan’s Anna Valencia Lakrini, Davao del Sur’s Katrina Anne Johnson, and Atasha Reign Parani of General Trias, Cavite! Catch the show live here TODAY at 2 pm or check out Rappler on Facebook.
Source: rapplerdotcom - 🏆 4. / 86 Read more »
Rappler Talk Entertainment: The reigning queens of Binibining Pilipinas 2023In this latest episode of Rappler Talk Entertainment, we chat with the winners of the recent Binibining Pilipinas 2023 pageant – Palawan’s Angelica Lopez, wh...
Source: rapplerdotcom - 🏆 4. / 86 Read more »