BDO, BPI back cut in reserve requirements
More funds deployed for lending would be a win-win situation for banks and the economy.
Executives from BDO Unibank and the Bank of the Philippine Islands (BPI) have voiced support for plans to cut the 20% reserve requirement ratio (RRR) imposed on Philippine banks, saying that it would significantly boost lending activities.
“Lowering the RRR will allow banks to boost its lending capacity providing a continuous supply of credit for consumers and businesses,” BDO Treasurer Pedro Florescio III said.
BPI’s Antonio Paner also said that unleashing more cash into the financial system wouldn’t be a big disruption, as more money supply would help cushion inflation.
“We are confident that the BSP is equipped to manage the impact on price changes as
there are other monetary tools that can be used,” Paner added.
Central bank Governor Nestor Espenilla, Jr. said he will be actively pushing to reduce the RRR.