Rediscount loans steady at end-November
BANKS DID NOT take out loans from the central bank’s rediscount window in November, according to data from the Bangko Sentral ng Pilipinas (BSP).
Total availments of peso rediscount loans were steady at P122.167 billion, which is the same level recorded as of end-October, “due to non-availment from rediscounting banks in November 2019,” the central bank said in a release on Tuesday.
However, this total is still more than double the P56.818 billion seen in the first eleven months of 2018.
The BSP lets banks to keep additional money supply by posting their collectibles from clients as collateral through the rediscount window.
For their part, lenders can opt to use the fresh cash — which could be in peso, dollar, or yen — to disburse more loans for corporate or retail clients and service unexpected withdrawals.
The non-availment of peso rediscount loans by lenders may signify that lenders already have enough liquidity, according to UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion.
“It may mean that banks have ample liquidity for their requirements or banks may have other sources for their daily liquidity requirements for the period covered,” he said in a text message.
BSP data showed bulk of the loans for the January to November period were used for other credits which comprised 65.13% of the total rediscounting loans. This consists of those that went to capital asset expenditures (38.75%), commercial credits (34.86%), loans to other services (19.62%), permanent working capital (6.72%), as well as housing loans (0.04%).
Meanwhile, commercial credit made up 34.86% of the total borrowings that banks used to disburse loans related to importation (24.93%), trading (9.92%), and export (0.01%) of goods or products.
Production credits or those used for agricultural production only made up 0.01% of the period’s total rediscounting loans.
DECEMBER RATES
Meanwhile, for December, rediscount rates are at 4.5625% for peso loans maturing in 90 days or less, while those with a 91- to 180-day term are priced at 4.625%.
These are based on the latest available BSP overnight lending rate plus a premium.
On the other hand, the Exporters Dollar and Yen Rediscount Facility (EDYRF) has lower rates of 3.9055% for loans with a tenor of one to 90 days; 3.968% for those maturing within a 91- to 180-day time frame; and 4.0305% for 181- to 360-day loans.
Meanwhile, rates for yen loans are at 1.9165% for one to 90-day loans; 1.979% for 91- to 180-day loans; and 2.0415% for loans maturing within a 181- to 360-day period.
These are based on the 90-day London Inter-Bank Offered Rate as of end-October plus 200 basis points, plus term premia. — L.W.T. Noble
