Banks will soon have more leeway in acquiring short-term funding from the Bangko Sentral ng Pilipinas (BSP) as the regulator is accepting syndicated loans as collateral for rediscounting.
BSP Circular 1008 has relaxed the central bank’s rules on rediscount loans by the “removal of the P3 billion cap per bank on rediscountable National Food Authority papers and the acceptability of syndicated loans and loans with underlying real estate collaterals under Mortgage Trust Indentures for rediscounting and emergency loans.” — Melissa Luz T. Lopez