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BSP pumps more cash into economy with cut in banks’ reserve requirements
The Bangko Sentral ng Pilipinas (BSP) will cut the reserve requirement ratio (RRR) by 200 basis points effective March 30, 2020, infusing P200 billion into the financial system.
This move is intended to calm financial markets and encourage banks to continue lending to both the retail and corporate sectors.
The reduction aims to ensure sufficient domestic liquidity to support economic activity amid the COVID-19 pandemic.
With this cut, the reserve requirement for the country's largest financial institutions will fall to 12 percent of their total holdings.
BSP Governor Benjamin Diokno stated that the central bank's stimulus program aims to support government projects and provide relief to those most affected by the enhanced community quarantine.
The BSP will explore potential cuts for thrift banks and non-bank financial institutions, with guidelines to be issued separately.
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The Bangko Sentral ng Pilipinas (BSP) has reduced its policy rates by 75 basis points this year to support economic growth amidst the COVID-19 pandemic.
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The Bangko Sentral ng Pilipinas (BSP) is injecting P300 billion into the economy through the purchase of short-term government bonds to combat the effects of the COVID-19 pandemic.
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The Bangko Sentral ng Pilipinas (BSP) has temporarily raised the single borrower's limit (SBL) for banks and non-banks to 30% from 25% for a six-month period to help the financial sector cope with the effects of the pandemic lockdown.
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Senator Christopher Lawrence "Bong" Go commended the Bankers Association of the Philippines (BAP) for their commitment to keep banking services accessible and maintain reasonable lending rates during the enhanced community quarantine.
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The Bangko Sentral ng Pilipinas (BSP) and transport agencies have remitted a total of P30 billion to the government to help fund the fight against the COVID-19 pandemic.
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