Revitalized rural banking

As expected, the first quarter of the year showed the emerging financial independence of the rural banking industry, as indicated by the sharp fall in the availment by rural banks of loans through the peso rediscount facility offered by the Bangko Sentral ng Pilipinas (BSP).

Data from the BSP showed that total loan availments by rural and thrift banks fell by 96.3 percent during the first three months of the year to P412 million from P10.987 billion in the same period in 2013. Market experts said there was enough money supply to go around the market in the first quarter, serving as the main reason for the practically non-availment of the rediscount window.