Reduction in Banks’ Reserve Requirement Mulled

The Bangko Sentral ng Pilipinas (BSP, Philippine central bank) is likely to reduce the reserve requirement for banks when the close to P1 trillion worth of funds parked at the central bank’s overnight deposit facility (ODF) is cut by half and migrated to the term deposit facility (TDF). Reserve requirment is currently pegged at 20%, the highest in the region. A percentage point cut could release up to P70 billion…

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