MANILA – Bangko Sentral ng Pilipinas governor Benjamin Diokno said on Monday that the country’s reserve requirement ratio (RRR) for banks, currently at 18 percent, should be reduced to a single digit before his term ends in 2023.
“It is clear we need to reduce RRR to be more competitive,” Diokno told a business forum.
The level of required reserves for banks was cut twice last year in line with a medium-term plan to bring the ratio to a single-digit and help bolster the economic growth rate, which is slowing.
The central bank next reviews policy on May 9. (Reuters)
