5 months Liquidity crunch heightens calls for BSP to cut banks’ reserve ratio MB |Biz
By DITAS LOPEZ (Bloomberg) The Bangko Sentral ng Pilipinas (BSP) is facing pressure to reduce the reserve requirement ratio for lenders to ease liquidity constraints. MB file photo. BDO Unibank, Inc. President Nestor Tan said money supply is “tight” and funding costs are rising as “people are going after the same pool of funds.” Reducing the ratio of cash that banks must hold in reserve from 18 percent would help, he said. The central bank cut the reserve ratio by a total of 2 percentage points last year, yet it remains one of the highest in Asia. BSP Governor ... more