• Small banks Q1 rediscount loans drop 82%

    0

    Borrowings by thrift and rural banks under the peso rediscount facility of the central bank fell by a steep 81.8 percent in the first quarter from a year ago, indicating there is still more than enough liquidity in the financial system.

    Advertisements

    Total loans availed of by thrift and rural banks under the rediscount facility dropped to P75 million in the January to March period from P412 million a year earlier, data released by the Bangko Sentral ng Pilipinas (BSP) showed.

    The rediscounting facility allows qualified banks to borrow from the central bank using their eligible borrowers’ papers as collateral. The facility helps banks meet their short-term liquidity needs.

    The use of the exporters’ dollar and yen rediscount facility (EDYRF) also saw a sharp drop in the period.

    Only one universal bank availed of $400,000 from the financing facility, benefiting one exporter. This reflects a 78.9 percent decline compared with the $1.9 million of loans recorded in the same period last year.

    The BSP said that no yen loans were availed of under the facility during the quarter.

    Of the peso rediscount borrowings, 70.6 percent went to commercial credits, 5.2 percent to production credits, and the remaining 24.2 percent to other credits such as housing (12.5 percent), capital expenditure (7.6 percent), and permanent working capital (4.1 percent).

    Share.
    loading...
    Loading...

    Please follow our commenting guidelines.

    Comments are closed.