Investing.com - Financial Markets Worldwide
Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Philippine central bank announces reserve requirement cut for bonds

Published 10/15/2019, 10:45 AM
Updated 10/15/2019, 10:50 AM
Philippine central bank announces reserve requirement cut for bonds

MANILA, Oct 15 (Reuters) - The Philippine central bank said
on Tuesday it is reducing the reserve requirement ratio (RRR)
for bonds issued by banks and quasi-banks to 3%, from 6%, in
line with its commitment to help deepen the local debt market.
The new rate is lower than the RRR on other debt instruments
issued by banks such as long-term negotiable certificates of
time deposits, which is currently at 4%, the Bangko Sentral ng
Pilipinas (BSP) said in a statement.
The lower bank RRR for bond issuance is expected to reduce
bond issuers' intermediation cost, BSP said. The reduction takes
effect beginning Nov. 1.
The move follows a further 100 basis-points cut in the
banks' RRR announced on Sept. 27, in line with the BSP's
medium-term plan to bring it to a single digit level.
BSP Governor Benjamin Diokno has said the adjustment in the
RRR is also aimed at increasing domestic liquidity to support
credit growth and the economy.


Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.