Thrift banks seek lower liquidity ratio

Mid-sized banks are hopeful that the Bangko Sentral ng Pilipinas (BSP) will consider lowering the minimum liquidity ratio (MLR) for medium-sized banks, following the decision to remove their reserve requirement ratio (RRR), according to the Chamber of Thrift Banks.

- KEISHA TA-ASAN

CTB president and CARD SME Bank vice chairperson Mary Jane Perreras said the zero RRR for thrift banks will increase loan volumes as it frees up more liquidity in the market.

However, she hopes that the BSP would take a further step by reducing thrift banks' MLR, which would enable these lenders to extend more credit to small businesses and underserved markets.

"(The zero RRR) will increase the volume of loans. Hopefully, there will be more liquidity in the market," Perreras said.

"And we're still hoping that the next step is for the BSP to reduce the MLR also," she added.