UBP CEO Edwin Bautista gives thumbs up to BSP’s cut in reserve requirements
Union Bank of the Philippines President and Chief Executive Officer Edwin Bautista has welcomed the Bangko Sentral ng Pilipinas’ (BSP) move to cut banks’ reserve requirement ratio by one percentage point as this would allow more liquidity in the market
During UnionBank’s annual stockholders’ meeting Friday, Bautista said this decision by the policy-making Monetary Board (MB) would allow banks to lend more without having to raise more funds.
“Currently, market’s liquidity is tighter because of the increase in interest rates. “That would help. It puts more liquidity in the market and we can continue to lend,” he said.
Early this month, the MB hiked policy interest rates by 25 basis points. But the central bank also announced Thursday the reduction of reserve requirement which will take effect next month.said Bautista.
Bautista said UnionBank is on track of achieving its FOCUS 2020 goal — the bank’s initiatives on fiscal value, operational excellence, customer franchise, UnionBank experience, and superior innovation.
He added that the bank would continue to incorporate new technologies such as blockchain in its business to cut operational cost.
UnionBank is also well on its way to becoming a digital bank, which means the company needs to retool its employees’ skill set particularly those involved in operations or other front-line functions such as the tellers, among others. Bautista said while UnionBank while turning digital, the bank was also creating value added jobs. (PNA)