Thrift banks vow use of liquidity for loans

in World News

THE Chamber of Thrift Banks (CTB) has vowed to “mobilize” the freshly injected liquidity into the financial system as its member financial institutions continue to provide micro, small and medium enterprises (MSMEs) and consumer loans amid the pandemic.

CTB President Cecilio Paul San Pedro, at the group’s general meeting on Tuesday, welcomed the recent Bangko Sentral ng Pilipinas (BSP) move to reduce the reserve requirements for thrift banks by 100 basis points (bp).

“We are pleased that BSP has taken cognizance of the fact that thrift banks have been continuously lending to MSMEs and consumers during the pandemic; hence, the reduction in reserve requirement is necessary to increase our lending capacity,” he said.

The BSP said the reduction in reserve requirements is expected to boost lending capacity for MSMEs and rural community-based clients.

The reserve requirement is the part of the total deposit balance that banks secure in the BSP’s

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