BSP reduces reserve requirements of thrift, rural, coop banks

CENTRAL bank Gov. Benjamin Diokno has announced Tuesday, July 21, a 100-basis-point reduction in the reserve requirements of thrift banks (TBs), rural and cooperative banks (RCBs) effective July 31, 2020.

The reduction is expected to increase lending capacity of these banks to support financing requirements of their micro, small and medium enterprise as well as rural community-based clients.

It will also help lower intermediation costs and ease financial strain faced by these banks’ customers.

With the reduction, the reserve requirements of TBs and RCBs will be three percent and two percent, respectively. (PR)