The Philippine central bank may consider cutting banks’ reserve requirement as a way to encourage lenders to do away with fees for small-value digital transactions, Governor Felipe Medalla said.
(Bloomberg) — The Philippine central bank may consider cutting banks’ reserve requirement as a way to encourage lenders to do away with fees for small-value digital transactions, Governor Felipe Medalla said.
The Bangko Sentral ng Pilipinas is also ready to explore “a cost-sharing system” with banks and payment operators to eliminate charges on small-value fund transfers, Medalla said in a series of Twitter posts on Saturday.
“All these, in pursuit of a financial system that leaves no one behind,” the central bank chief said.
Medalla previously signaled that the 12% reserve requirement ratio may be reduced in the first half when the monetary authority winds down tightening. He said on Friday that he sees space for a quarter-point move at the next monetary policy review next month, amid expectations for inflation to start cooling.
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