The Central Reserve Bank of Peru (BCRP) decided to increase the reserve requirements in national currency, with the aim of complementing the recent increases in the reference rate and reinforcing monetary control.
In this way, an increase in the minimum legal reserve was approved to 4.5% in November 2021, to 4.75% in December 2021 and to 5% from January 2022.
The reserve requirement will be the maximum of that resulting from applying the reserve requirement rate of the base period (July 2021) to the obligations subject to reserve requirements up to the level of the base period; and a marginal reserve requirement rate of 25% on the increase in Total Obligations Subject to Reserve Requirements (TOSE) with respect to the base period and the minimum legal reserve corresponding to the evaluation period.
Further, As of November 2021, a maximum average reserve equivalent to 6% of the TOSE flow of the evaluation period will apply. This maximum reserve requirement will make it possible to maintain a low dispersion in the average reserve requirement rates between financial entities.
It should be noted that, in August 2021, the minimum average reserve requirement rate was increased from 4% for September to 4.25% and 4.5% for October and November 2021, respectively. In that month, the minimum current account requirement was also raised from 0.75% to 1% of the TOSE, from October 2021.
Likewise, as of September, a marginal reserve of 25% of the TOSE flow of the evaluation period with respect to July 2021 was approved.
BCRP: What is the bank reserve?
The reserve requirement is a monetary policy instrument that consists of the Requirement to financial institutions to maintain a percentage of their obligations (mainly deposits) in the form of cash in a vault or checking account at the BCRP.
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