Availments under BSP rediscount window down 61%

MANILA, Philippines - The number of banks that tapped the central bank’s rediscount facilities went down in 2013 from the previous year, indicating banks have adequate liquidity for their needs.

The Bangko Sentral ng Pilipinas (BSP) said availments under the peso rediscount facility fell 61.4 percent to P17.956 billion in 2013 from P46.504 billion in 2012.

From the total loans, 81.8 percent went to commercial credits, 3.2 percent to agricultural and industrial credits, and 15 percent to other credits such as capital expenditures, other services, permanent working capital and housing.

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

Availments under the dollar rediscount facility plunged 37 percent to $109.4 million in 2013 from $172.5 million in the previous year.

The availments, made by eight commercial banks and a thrift bank, benefited 31 exporters, the BSP said.

Meanwhile, banks did not avail of loans under the yen rediscount facility last year.

The decreasing volume of availments under the rediscount facility indicate the healthy state of the Philippine banking industry.

Latest BSP data showed resources of the banking industry climbed 20 percent to P9.443 trillion as of October last year from P7.895 trillion in the same period in 2012.