Connect with us

Hi, what are you looking for?


Banks leave rediscount facility untapped in Feb.

LENDERS LEFT the central bank’s rediscount facility untouched in February as lower demand for credit amid ample liquidity reduced the need for the window.

“There are no availments under the peso rediscount facility and EDYRF (Exporters’ Dollar and Yen Rediscount Facility) covering the period Jan 1. to Feb. 28,” the Bangko Sentral ng Pilipinas said in a statement on Wednesday.

February marked the fifth straight month that banks did not use the rediscount facility.

Last year, the rediscount window was only tapped in March, April, August, and September. This resulted in cumulative loans declining by 77.7% to P26.9 billion from the 2019 level.

Meanwhile, the EDYRF was left totally untouched in 2020.

The central bank’s rediscount window allows banks to access additional liquidity by letting them post collectibles from clients as collateral. In turn, lenders can use the cash, which could be in peso, dollar, or yen, to lend more to their corporate or retail clients and service unexpected withdrawals.

Lenders’ decision to not tap the rediscount facility last month reflected the continued decline in outstanding loans, an analyst said.

“Slower demand for loans has been a major factor that reduced banks’ need to tap the BSP rediscounting facilities,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

He added the lack of rediscount loans also showed banks still have ample liquidity.

BSP Governor Benjamin E. Diokno has said central bank measures amid the pandemic have armed the financial system with P2 trillion in additional liquidity, equivalent to about 10% of the country’s gross domestic product.

However, lending remained tepid and even declined for the second straight month in February. BSP data showed outstanding loans by big banks fell 2.4% year on year in February as lenders tightened their credit standards to guard against bad debt.

For this month, the rate for peso rediscount loans is at 2.5% regardless of maturity.

Meanwhile, March applicable rates for all dollar and yen-denominated rediscount loans are at 2.18838% and 1.918%, respectively. — Luz Wendy T. Noble

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



The national pig herd has lost-one tenth of all sows over the last six months, farmers’ associations have revealed, after breeders were forced into...


EasyJet plunged £213 million into the red in the Christmas quarter and is still burning through £150 million in cash each month, putting its...


A new range of healthy yet indulgent cookies will launch in Booths this month for just £1 per pack with the UK-born snacks by...


Payments firm has raised $1bn (£730m), giving it a $40bn (£29bn) valuation and crowning it the UK’s most valuable private fintech. The London-headquartered...


Sylvera, a UK-based startup that provides ratings for carbon offsets, has raised $32.6m (£24.1m) in a Series A funding round to accelerate and expand...


UK-based fintech Everything has raised €2m (£1.67m) to reinvent a decades-old financial product: premium bonds. The raise was led by a group of angel...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.