The BSP clarified today that the 2-percentage point increase in the liquidity reserves also applies to thrift banks. The increase will take effect on 13 October 2000. Liquidity reserves of thrift banks will then be at 4 percent from the present 2 percent. On the other hand, the regular reserve requirement of thrift banks will be maintained at the current levels of 8 percent on demand deposits, deposit substitutes and “now’ accounts liabilities and at 6 percent on savings and time deposit liabilities. As in the past, no liquidity reserves will be imposed on deposits and deposit substitutes liabilities of rural banks and cooperative banks.
The move is in line with the 2 percent increase in the liquidity reserves of commercial banks. These measures are aimed at mitigating the pressure against the peso coming from excess peso liquidity in the banking system.