THE BANGKO SENTRAL ng Pilipinas (BSP) extended loans amounting to P242.6 million last year.

This was 99.9% lower than the loans granted in 2022, the BSP said in its 2023 annual report.

“Accordingly, total principal collections reached P247.2 million, likewise lower by 99.9% than in 2022,” the central bank said.

“This may be attributed to sufficient liquidity in the banking system, as reflected by banks’ non-availment of rediscounting loans and the National Government’s (NG) non-renewal of the P300-billion provisional advances it secured to address the adverse impact of COVID-19 in 2022.”

The BSP said there have been no past due loans recorded since 2014.

Meanwhile, existing past due loans slipped by 0.3% to P4.53 billion as of end-2023 from P4.51 billion at end-2022.

“This was on account of recoveries through cash collections, foreclosure proceedings, or dacion of real properties by the Philippine Deposit Insurance Corp. (PDIC) of P4.4 million and the write-off of P10.5 million,” it added.

The central bank’s total outstanding loan portfolio inched down to P85.83 billion as of end-2023 from P85.84 billion a year prior.

The BSP said it introduced reforms in its facilities to “influence the volume of credit, consistent with its mandate of maintaining price and financial stability.”

These include changes in the computation of the peso rediscount rate as well as the US dollar and Japanese yen rediscount rates, the termination of the overdraft credit loan facility in check clearing and settlement that prohibited banks from incurring overdrafts, and the adoption of an investment policy statement of certain managed funds.

“The BSP remains steadfast in refining its credit facilities to ensure their effectiveness and adaptability to the evolving financial and digital environment. This commitment is integral to the central bank’s thrust toward a sustainable and inclusive financial system,” it added. — L.M.J.C. Jocson

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