Bangko Sentral cuts reserve requirement ratio of thrift, rural banks by 100bps

ABS-CBN News

Posted at Jul 21 2020 10:17 AM | Updated as of Jul 21 2020 10:32 AM

Bangko Sentral ng Pilipinas Governor Benjamin Diokno answers questions during the unveiling of the 20-piso coin at the Executive Business Center at the Bangko Sentral ng Pilipinas, (BSP) in Manila on December 17, 2019. FILE / Jonathan Cellona, ABS-CBN News

MANILA -- The Bangko Sentral ng Pilipinas (BSP) on Tuesday said it cut the reserve requirements for thrift, rural and cooperative banks by 100 bps effective July 31, as part of continued efforts to boost banks' lending capacity and aid consumers reeling from the pandemic to access credit. 

The reduction brings the reserve requirement ratio for thrift banks at 3 percent, and 2 percent for rural and cooperative banks, it said. 

BSP Governor Benjamin Diokno earlier said cutting the reserve requirement ratio for banks "remains on the table," following a surprise cut in the benchmark interest rate last June 25. 

Further RRR cuts will depend on the domestic liquidity and credit conditions. 

The BSP cut interest rates by 50 basis points to a record low of 2.25 percent in June, to help mitigate downside risks to growth and to boost market confidence.