Gov’t, private sector sign MOA on financial education program

BSP to lower RRR on June 30

The Bangko Sentral ng Pilipinas (BSP) has slashed regulated financial institutions’ reserve requirement ratio (RRR) effective June 30, the day that regulatory relief measures allowing banks’ lending to small business as RRR compliance expire.

In a statement on Thursday, the central bank said RRR of universal and commercial banks (U/KBs) and non-bank financial institutions with quasi-banking functions (NBQBs) were slashed by 250 basis points to 9.5 percent; digital banks, 200 basis points to 6 percent; thrift banks (TBs), 100 basis points to 2 percent; and rural banks (RBs) and cooperative banks (coopbanks), 100 basis points to 1 percent.

“The new ratios shall take effect on the reserve week beginning 30 June 2023 and shall apply to the local currency deposits and deposit substitute liabilities of banks and NBQBs,” it said.

The BSP said the RRR cut is aimed to “ensure stable domestic liquidity and credit conditions” as the alternative modes of RRR compliance ends this month.

Earlier, BSP Governor Fe- lipe Medalla indicated the need to cut RRR to address any rate tightening effects on banks’ liquidity position once the pandemic-related measures allowable period ends.

TheNational Economic and Development Authority (NEDA) signed a multi-party memorandum of agreement to institutionalize a curriculum that will help students achieve financial independence.

The BSP statement said the RRR cut “is in line with the BSP’s ongoing efforts towards a more active and flexible approach to liquidity management through market-based monetary operations.”

Last week, the central bank announced that it would offer starting on June 30 the 56-day BSP Bill, an additional facility aimed at mopping off excess liquidity from the financial system.

The central bank said the reduction in RRR “do(es) not constitute any shift in the BSP’s monetary policy settings.”

“The BSP continues to prioritize bringing inflation back towards a target-consistent path over the medium term and will continue to signal its monetary policy stance through the key policy interest rate, or the rate on the overnight reverse repurchase facility,” it added.

Meanwhile, Rizal Commercial Banking Corporation (RCBC) chief economist Mi-

In a statement, NEDA said the MOA signed on Thursday seeks to establish the Personal Finance 101: “My Peso and I” curriculum as a three-unit elective course for selected higher education institutions (HEIs) nationwide.

NEDA is partnering with the Bangko Sentral ng Pilipinas (BSP), Commission on Higher Educa- tion (CHED), BPI Foundation Inc. (BPIF), and members of the Financial Sector Forum (FSF), such as the Insurance Commission, Philippine Deposit Insurance Commission, and Securities and Exchange Commission.

Personal Finance 101 is a curriculum that aims to provide college students with the fundamen- tal knowledge and skills necessary to achieve financial independence. Students will learn the basics of financial planning tools and techniques, as well as develop analytical skills to make crucial financial decisions regarding savings, credit, investments, insurance, and retirement planning.

“We commend this initiative that supports Chapter 11 of the Philippine Development Plan 2023-2028, on promoting an inclusive, innovative, and healthy financial sector. Financial literacy has been identified as a major

FGOV’T, P10