Metro Manila (CNN Philippines, October 15) — The Bangko Sentral ng Pilipinas (BSP) cuts the reserve requirement rate for bonds issued by banks and quasi-banks (QBs) to 3 percent.
In a statement, the BSP announced this rate is lower than the 4 percent rate implemented for long-term negotiable certificates of time deposits.
“The adjustment in the required reserves for bonds complements the BSP’s earlier policy issuance streamlining the rules and requirements for the issuance of debt instruments by banks/QBs,” the BSP said in a statement.
The move is also aimed to incentivize financial institutions to borrow from the domestic bond market to manage its liquidity.
The new reserve requirement rate will take effect in November.
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