Rediscount loans down 60%

MANILA, Philippines - Fewer banks tapped the central bank’s rediscount facilities as of November, indicating banks have enough liquidity to cover their funding needs.

In a statement, the Bangko Sentral ng Pilipinas (BSP) said availments under its peso rediscount facility fell 60 percent to P17.735 billion in the 11 months to November from P43.740 billion in the same period a year ago.

The rediscount facility allows banks to borrow from the central bank to meet short-term liquidity needs. Banks use their clients’ promissory notes as collateral when tapping this facility.

Of the total availments under the peso rediscount facility, 82 percent went to commercial credits, 3.2 percent to agricultural and industrial credits, and 14.8 percent to other credits such as capital expenditure, other services, permanent working capital, and housing.