NBP still waiting for banks to respond to mandatory reserves decrease offer

NBP proposed to lower the mandatory reserves to a 5% flat rate only if banks agreed to purchase low-interest 10-year bonds. If all banks respond positively to the offer, the new regulations will come into effect in September. Currently all banks are obliged to hold 20% of zloty call deposits, 11% of zloty term deposits and 5% of foreign currency deposits without interest as "emergency cash." "This solution will noticeably decrease the difference in competitiveness between domestic and foreign banks on the international services market," said Bank Rozwoju Eksportu (BRE) president Wojciech Kostrzewa. (Rzeczpospolita, page B5)