Reserve ratio should be single digit before 2023: Diokno

Reuters

Posted at Apr 29 2019 04:07 PM

Bangko Sentral ng Pilipinas’ (BSP) new governer, Benjamin Diokno at work shortly after an interview with Cathy Yang for ANC’s The Boss, held at the BSP headquarters in Manila on March 12, 2019. George Calvelo, ABS-CBN News

MANILA - Bangko Sentral ng Pilipinas governor Benjamin Diokno said on Monday that the country's reserve requirement ratio (RRR) for banks, currently at 18 percent, should be reduced to a single digit before his term ends in 2023. 

"It is clear we need to reduce RRR to be more competitive," Diokno told a business forum.

The level of required reserves for banks was cut twice last year in line with a medium-term plan to bring the ratio to a single-digit and help bolster the economic growth rate, which is slowing.

The central bank next reviews policy on May 9.