MANILA, Philippines - Fewer banks continued to avail of loans under the rediscount facility of the Bangko Sentral ng Pilipinas (BSP) as of March as liquidity conditions remain adequate for lenders.
Central bank data showed loan availments under the peso rediscount facility plunged 96.3 percent to P412 million in the three months to March from P10.987 billion in the same period last year.
Of the total availments, 74.2 percent were used for commercial credits, 3.8 percent to agricultural and industrial credits, and 22 percent to other credits made up of permanent working capital, other services, capital expenditure, and housing.
During the three-month period, only thrift and rural banks availed of the facility.
The rediscount facility allows banks to borrow from the BSP in order to meet short-term liquidity needs. Banks use their clients’ promissory notes as collateral when tapping the facility.
Availments under the dollar rediscount facility also fell 95.9 percent to $1.9 million as of March from $46.1 million last year.
One universal bank and a thrift bank tapped the facility during the three-month period.
The BSP noted no availments were made under the yen rediscount facility.
Lesser availments under the rediscount facilities suggests that banks have enough liquidity to cover funding needs.
Total resources of the banking system reached P10.423 trillion as of end-2013, up 25 percent from P8.358 trillion in 2012.