Further, we will continue to pursue the reduction of reserve requirements from the current 16 percent to single digit by 2023 to promote a more efficient financial system. This is part of the BSP’s broad financial sector reform agenda.
We expect that all these will aid in the further development of Philippine capital markets by fostering money market transactions and active liquidity management by Philippine banks. Indeed, the BSP’s monetary policy framework has been an effective tool in mitigating the risks emanating from here and abroad.