Total loans availed of by thrift and rural banks under the peso rediscount facility of the central bank plunged in the first seven months of the year as the small banks continued to shun borrowing from the special window.
Borrowings by thrift and rural banks under the rediscount facility dropped by 94.8 percent
to P823 million in January to July from P15.908 billion a year earlier, data from the Bangko Sentral ng Pilipinas (BSP) showed on Monday.
Rediscounting is a privilege given by the BSP to qualified banks using eligible borrowers’ papers as collateral.
Banks’ use of the Exporters Dollar and Yen Rediscount Facility also recorded a year-on-year decline in the period, showing only one universal bank and a thrift bank availing of a combined $6.6 million of the financing facility, benefiting two exporters.
This represents a 92.1 percent fall in availments from the $84 million grants recorded for the same period last year, the BSP said.
Of the P823 million rediscounted loans released through the banks in the seven-month period, commercial credits accounted for 83.4 percent, agricultural and industrial credits 3.5 percent, and the remaining 13.1 percent went to other credits, such as permanent working capital (5.5 percent), other services (4.3 percent), capital expenditure (2.1 percent), and housing (1.2 percent).