Philippine Central Bank Cuts Reserve Requirement Ratio for Banks by 200 Basis Points

The Philippine central bank (Bangko Sentral ng Pilipinas) announced a reduction in the reserve requirement ratio (RRR) for banks by 200 basis points. This adjustment will lower the RRR for universal and commercial banks to 5%. The new ratios are scheduled to take effect during the week of March 28. The central bank stated that this move aims to enable banks to more effectively allocate funds towards productive loans and investments, reducing frictions that impede financial intermediation.