THE CENTRAL BANK’S rediscount window remained untapped in June, ahead of adjustments in the borrowing rates which will kick in this month.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said the total loan availments under the peso rediscount facility remained at P15 million as of end-June, as banks saw no need augment their money supply to service client transactions.
The rediscount facility has been left untouched for two straight months, with the entire P15-million loan recorded in April.
Philippine banks may avail loans from the BSP’s rediscount window in order to meet their short-term liquidity needs, where they can present promissory notes from outstanding client debts as collateral.
These loans mature in different tenors, ranging from three to six months. The lenders may then use the fresh money supply to extend more loans or service withdrawals.
This comes ahead of the shift to uniform borrowing rates under the peso rediscount window which take effect on July 21, after the central bank decided last month to lift the preferential rates extended to small lenders.
The BSP said it will be closing the special rediscount window for thrift, rural, and cooperative banks, where they are allowed to incur loans at a smaller margin compared to those imposed on universal and commercial banks.
With the adjustment, rediscount loans availed by the small banks will be charged the same rates imposed on the big lenders, which currently stand at 3.5625% for loans maturing in 90 days and 3.625% for 180-day credit lines.
Likewise, no banks tapped the dollar and yen rediscount facility during the first semester, according to central bank data.
Still, interest rates under the foreign currency windows went up this July, in sync with an uptrend in global borrowing rates.
Yields for dollar loans inched up to 3.29917% for 90-day loans; 3.36167% for 91- to 180-day loans; and 3.42417% for 181- to 360-day loans. On the other hand, yen borrowings will also likewise see higher rates at 1.99986% for one to 90-day loans, 2.06236% for 91- to 180-day loans, and 2.12486% for 181- to 360-day loans. — Melissa Luz T. Lopez