Banks leave rediscount facility untouched in December
LENDERS did not tap the central bank’s rediscount facility in December as loan growth remained relatively slow.
“For the period 01 January to 31 December 2021, total availments of banks against their rediscount loans remain unchanged at P6.12 million for loans under the peso rediscount facility,” the Bangko Sentral ng Pilipinas (BSP) said in a statement on Friday.
Banks also left the Exporters’ Dollar and Yen Rediscount Facility (EDYRF) untouched.
The BSP’s rediscount window gives banks access to additional money supply by posting their collectibles from clients as collateral.
Banks may then use the cash — in peso, dollar or yen denominations — to grant loans to corporate or retail clients and service unexpected withdrawals.
In 2021, banks only tapped the central bank’s rediscount facility in June, July, and September.
Bank lending has been relatively slow in recent months, which reduced the need to tap the BSP’s rediscount window, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
“Banks also have other options for funding such as the interbank market and the capital markets, in view of the increase in fund-raising/investment banking activities in recent months, thereby also reducing the need for banks to tap the BSP rediscounting facility,” he said.
Outstanding loans issued by big banks went up 4% year on year to P9.349 trillion in November 2021, quicker than the 3.5% expansion in October 2021 and marking the fourth straight month of annual growth in lending.
Meanwhile, for January, the central bank said peso rediscount loans are priced at 2.5%, regardless of maturity.
On the other hand, the rates for dollar and yen rediscount loans, regardless of maturity, are 2.20913% and 1.924%, respectively. – Jenina P. Ibañez
