Borrowings by thrift and rural banks under the peso rediscount facility of the central bank during the nine months to September showed a sharp 94.1 percent drop from the corresponding period a year earlier as small banks avoided the loans provided for them through the special window.
Borrowings by thrift and rural banks fell to P1.017 billion in January to September from P17.320 billion a year earlier, data from the Bangko Sentral ng Pilipinas (BSP) showed.
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 $6.9 million of the financing facility, benefiting two exporters.
This represents a 92.7 percent decline in availments from the $95 million grants recorded for the same period last year, the BSP said.
Of the more than P1 billion rediscounted loans released through the banks in the nine-month period, commercial credits accounted for 77 percent, agricultural and industrial credits 6 percent, and the remaining 17 percent went to other credits, such as permanent working capital (6 percent), capital expenditure (5.6 percent), other services (4.1 percent), and housing (1.3 percent), according to the data.