The Bangko Sentral ng Pilipinas (BSP) will reduce the reserve requirement ratios (RRRs) by 200 basis points (bps) for universal and commercial banks (U/KBs) and non-bank financial institutions with quasi-banking functions (NBQBs); 150 bps for digital banks; and 100 bps for thrift banks (TBs).

The reduction shall bring the RRRs of U/KBs and NBQBs to 5 percent; digital banks to 2.5 percent; and TBs to 0 percent. The new ratios shall take effect on the reserve week beginning on 28 March 2025 and shall apply to the local currency deposits and deposit substitute liabilities of banks and NBQBs.

The BSP reiterates its long-run goal of enabling banks to channel their funds more effectively toward productive loans and investments. Reducing RRRs will lessen frictions that hinder financial intermediation. Bangko Sentral ng Pilipinas