The Bankers Association of the Philippines lauds the recent decision of the Bangko Sentral ng Pilipinas to reduce the reserve ratio requirement by 200 basis points from 18% to 16%. The reduction of the RRR is a complementary boost to our national economy with inflation slowing down to a 16-month low.
“The 2% cut in reserve requirements recognizes the BSP’s effectiveness in strengthening the country’s banking system. It is a bold move, coming on the heels of a policy rate cut, but equally appropriate given how our financial system has advanced under the BSP’s stewardship.” said Bankers Association of the Philippines president Cezar Consing.
Moving forward, the BAP is optimistic that the RRR reduction, together with easing of policy rates, will sustain the growing economic momentum of the Philippines. The association is confident that the Bangko Sentral will continue to exercise its regulatory role effectively as catalyst to bolster economic growth and consumer confidence in the banking industry.