The Bankers Association of the Philippines (BAP) welcomes the decision by the Bangko Sentral ng Pilipinas (BSP) to reduce the current reserve requirement in its effort to help sustain the country’s growth momentum as the government embarks on a massive infrastructure spending.

The reserve adjustment means that borrowers will have access to more sources of funds and more efficient cost of borrowing that is expected to propel more economic activity in the country.

“In a few weeks, we expect that BAP member banks will be able to extend additional credit to consumers and enterprises that require adequate funds for their personal and business needs,” BAP managing director Benjamin Castillo said.

We are confident to this move of the Monetary Board for the gradual reduction in the reserve ratio which clearly demonstrates a strong regulatory framework and supports the BSP’s ability to further manage liquidity while policy rates are within its framework to continuously promote economic growth.