It also brought down the RRR of non-bank financial institutions with quasi-banking functions by 250 bps, of digital banks by 200 bps and of thrift banks, rural banks and cooperative banks by 100 bps.
The new ratios will take effect on the reserve week beginning June 30, 2023 and will apply to the local currency deposits and deposit substitute liabilities of banks and NBQBs. The BSP clarified that the lower reserve requirements do not constitute any shift in monetary policy settings. “The BSP continues to prioritize bringing inflation back towards a target-consistent path over the medium term and will continue to signal its monetary policy stance through the key policy interest rate, or the rate on the overnight reverse repurchase facility,” it said.
He said this could be siphoned off with the upcoming 56-day BSP bills starting June 30, 2023 to help stabilize the exchange rate and overall inflation. BSP Governor Felipe Medalla earlier said the timing of the RRR cut was important especially if monetary authorities were not pressured anymore to increase the policy rates to tame inflationary pressures.
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.
Bangko Sentral cuts banks’ reserve ratio by 250 bpsThe Bangko Sentral ng Pilipinas emphasizes that the lower reserve requirements do not constitute any shift in its monetary policy settings.
Source: rapplerdotcom - 🏆 4. / 86 Read more »
Banks’ RRR slashed by 250 bps | Jasper Y. ArcalasThe Bangko Sentral ng Pilipinas (BSP) on Thursday slashed the reserve requirement ratios (RRR) of banks by as much as 250 basis points, bringing down the effective ratios across banks to single digit. Know more:
Source: BusinessMirror - 🏆 19. / 59 Read more »
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 »
BSP cuts RRR for banks, non-banksThe Bangko Sentral ng Pilipinas (BSP) has reduced both banks and non-banks’ reserve requirement ratios (RRR) to single-digit levels effective end-June this year, BSP Governor Felipe M. Medalla announced on Thursday, June 8. | ManilaBulletin
Source: manilabulletin - 🏆 25. / 51 Read more »
BSP cuts banks’ reserve requirements starting June 30The Bangko Sentral ng Pilipinas will reduce the amount of cash that banks must have in reserve starting June 30, a move that is expected to release some P325 billion into the financial system. | RonWDomingoINQ /PDI
Source: inquirerdotnet - 🏆 3. / 86 Read more »