MANILA, Philippines - Fewer banks borrowed from the Bangko Sentral ng Pilipinas in the first five months, indicating lenders have enough liquidity to cover their funding needs.
In a report, the BSP said loan availments of thrift and rural banks under the peso rediscount facility amounted to P640 million from January to May, down 96 percent from a year ago.
The bulk or 81.1 percent of loan availments went to commercial activites, 3.9 percent to agricultural and industrial sectors, and 15 percent to other activities such as other services, capital expenditure, and housing.
The rediscount facility allows banks to borrow from the BSP to meet their short-term liquidity needs. Banks use their clients’ promissory notes as collateral when tapping the facility.
BSP data also showed availments of a universal bank and a thrift bank under the dollar rediscount facility fell 93 percent to $4.3 million in the five months to May from the same period last year.
These loans benefitted two exporters, the central bank said.
No yen credit was extended during the period.
Latest BSP data showed total resources of the banking system reached P10.455 trillion as of March, up 24 percent from P8.419 trillion in 2012.