Banks continue to snub BSP rediscount facilityDespite the extension of the zero spread on rediscount loans, latest data released by the central bank showed that banks borrowed a meager P6.12 million under the BSP’s rediscounting facility from January to September. MANILA, Philippines — Philippine banks continued to snub the central bank’s peso rediscount facility amid the massive liquidity in the financial system and tepid demand from corporate and individual borrowers due to uncertainties brought about by the pandemic, according to the Bangko Sentral ng Pilipinas (BSP). Despite the extension of the zero spread on rediscount loans, latest data released by the central bank showed that banks borrowed a meager P6.12 million under the BSP’s rediscounting facility from January to September. Rediscounting is a BSP credit facility extended to qualified banks with active rediscounting lines to meet their temporary liquidity needs by refinancing the loans they extend to their clients using the eligible papers of end-user borrowers. For October alone, the BSP said the applicable rediscount rate under the peso rediscount facility remains at 2.50 percent, regardless of maturity.

Source: Philippine Star October 11, 2021 15:56 UTC