BSP cuts bank reserves by 200 bps to inject PHP200B

The Bangko Sentral ng Pilipinas (BSP) will cut the reserve requirement ratio (RRR) of universal and commercial banks by 200 basis points to 12% starting March 30, releasing an estimated PHP200 billion into the economy.

This reduction aims to calm financial markets and encourage continued lending to both retail and corporate sectors amid the COVID-19 pandemic.

The Monetary Board authorized Governor Benjamin Diokno to determine further adjustments in RRR for other banks and non-bank institutions under BSP supervision, providing flexibility to address liquidity strains caused by the pandemic.