LENDERS did not tap the rediscount window of the Bangko Sentral ng Pilipinas (BSP) in January amid the extended implementation of regulatory relief measures.

“There were no availments against the rediscounting lines of banks with the BSP under the peso rediscount facility and the Exporters’ Dollar and Yen Rediscount Facility (EDYRF) for the period covering Jan. 1 to 31,” the central bank said in a statement.

In 2021, lenders only tapped the rediscount facility in June, July and September. These peso rediscount loans amounted to P6.12 million.

Last year’s rediscount loans were significantly smaller than the P26.9 billion in 2020.

The rediscount facility of the BSP gives banks access to additional money supply by posting their collectibles from clients as collateral.

Banks may use the cash denominated in peso, dollar or yen denominations to extend credit to corporate or retail clients and service unexpected withdrawals.

The rediscount facility was untouched in January as there is still excess liquidity in the system, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The extension of various regulatory relief measures would have reduced the need for banks to tap the BSP Rediscounting facilities,” he added.

Last month, the BSP announced that the implementation of some regulatory relief measures for banks during the pandemic will be extended until the end of the year. Among these are the reduction of credit risk weight for affected micro-, small-, and medium-sized enterprises, the 30% single borrowers’ limit, and the lower 16% minimum liquidity ratio for smaller banks.

The BSP infused about P2.3 trillion in liquidity to the financial system amid the crisis through various easing measures. This is equivalent to about 12.5% of the gross domestic product.

For this month, the BSP said peso rediscount loans will be priced at 2.5%, regardless of maturity.

Meanwhile, applicable rates for credit tapped under the EDYRF will be at 2.30886% and 1.97937% for dollar- and yen-denominated borrowings. — Luz Wendy T. Noble

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