Bank avails of P7.52-B rediscount loan

A LONE BANK tapped the Bangko Sentral ng Pilipinas’ (BSP) peso rediscount window in June after the facility was left untouched last month.

A universal bank took out a P7.52-billion loan from the BSP’s peso rediscount facility in June, data from the central bank showed. This followed its P4.08-billion loan in April.

The lender’s two loans made up the P11.6 billion in total availments made under the peso rediscount window for the first semester.

In 2021, lenders only tapped the facility in June, July, and September. These peso rediscount loans amounted to P6.12 million.

“These availments are secured by the bank’s credit instruments arising from Commercial and Other Credits, as authorized under Section 282 of the Manual of Regulations for Banks,” the BSP said.

“Other Credits, comprising 97.72% of the total availments, represent the rediscount of loans that financed capital asset expenditures while the remaining 2.28%, under Commercial Credits, represent the rediscount of loans that funded importation activities.”

Meanwhile, the Exporters’ Dollar and Yen Rediscount Facility (EDYRF) remained untapped last month. The last time an availment was made under the EDYRF was a dollar rediscounting loan in 2016, the BSP said.

The BSP’s rediscount window gives banks access to additional money supply by posting their collectibles from clients as collateral.

In turn, banks may use the cash — denominated in peso, dollar or yen — to extend more loans to their corporate or retail clients and service unexpected withdrawals.

Bank lending growth was at a two-year high in May as economic activity continued to recover and as borrowers secured financing amid rising interest rates, with liquidity also sustaining its expansion.

Latest data from the BSP showed outstanding loans by big banks, net of reverse repurchase placements with the central bank, rose by 10.7% in May to P9.97 trillion in the same month last year.

This was the fastest growth in lending seen in 24 months or since the 11.2% expansion logged in May 2020.

As lending growth continued to pick up, domestic liquidity expanded by 6.9% to P15.3 trillion in May. This was slower than the revised 7.2% growth in March.

For July, the applicable rate for peso rediscount loans will be at 3.3969% for 90 loan maturity days, and at 3.7938% for 91-180 days. 

Meanwhile, dollar borrowings will be priced at 4.68204% (1-90 days), 5.07894% (91-180 days), 5.87274% (181-360 days).

Yen-dominated borrowings will be priced at 2.3658% (1-90 days), 2.7627% (91-180 days), 3.5565% (181-360 days). — K.B. Ta-asan