The proposal would require the FDIC to automatically apply small bank credits to quarterly assessments when the reserve ratio
is at least 1.35 percent, rather than 1.38 percent, as required under current regulation.
The head of the Philippines central bank has said that the bank could make more reserve ratio
Diokno, who took office in March, is following through on a pledge by his predecessor, the late Nestor Espenilla, to bring down Southeast Asia's highest reserve ratio
to single digits by the middle of 2023.
"To me, that is also clear because we have one of the highest reserve ratio
in this part of the world.
The department also reported the FHA had a reserve ratio
of around 3% in 2008, but in 2013 it needed a $1.7 billion taxpayer bailout to cover losses.
The People's Bank of China has announced measures to lower the <B required capital reserve ratio
The repurchase rate and reserve repurchase rate have also been maintained at 7.5 percent and 6.5 percent respectively while the cash reserve ratio
and the statutory liquidity ratio have been left untouched at 4 percent and 21.5 percent.
Accordingly, the repurchase rate and reserve repurchase rate have been maintained at 7.5 per cent and 6.5 per cent respectively while the cash reserve ratio
and the statutory liquidity ratio have been left untouched at 4 per cent and 21.5 per cent.
"Amid rapid normalization of M3 (domestic liquidity), prevailing disinflation despite recent oil price corrections and trimmer SDA (special deposit accounts), we believe theres opportunity for a one-percentage cut in the bank reserve ratio
," Trinidad said.
In addition, the central bank will cut the reserve ratio
by an extra 50 basis points for urban and rural commercial banks that lend to small and mid-sized businesses.
The reverse repo rate was kept unchanged at seven percent and Cash Reserve Ratio
(CRR) was maintained at four percent.