Peso rediscount facility reaches P8.92 B in 5 mos
Loans availed by local banks under the peso rediscount facility reached P8.92 billion in the first five months of the year, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.
According to BSP data, the latest figure was sharply higher than the P15 million recorded in the same period in 2017.
Of the total availments as of end-May, 43.87 percent went to commercial credits, the BSP said.
About 56.11 percent of total loans disbursed under the peso rediscount facility also went to other credits, consisting of capital asset expenditures (44.17 percent), services (6.49 percent), permanent working capital (5.39 percent), and housing (0.06 percent).
The remaining 0.02 percent went to production credits.
The BSP said there was no availment under the exporters dollar and rediscount facility during the five-month period.
Rediscounting is a privilege of a qualified bank to obtain loans or advances from the BSP using the eligible papers of its borrowers as collaterals. It is a standing credit facility provided by the central bank to help banks liquefy their position by refinancing the loans they extend to their clients.
Over the past few years, the use of the central bank facility has been declining steadily as there is enough cash circulating in the economy.
In 2017, borrowings from the facility reached P1.59 billion, below the P10.676 billion in total rediscount loans distributed in 2016.
For June, the BSP said the rates of rediscount loans maturing in 90 days has been maintained at 3.8125 percent, while those with tenors from 91 to 180 days still have a rate of 3.875 percent.
The BSP in June last year adopted a unified rediscounting window for all types of banks as it decided to terminate the sunset provision for small banks.
The central bank approved the removal of the sunset period of five years for thrift banks and 10 years for rural and cooperative banks in accessing the BSP’s peso rediscount facilities.