Under previous rules,
rediscounting loan rates were pegged at the BSP's benchmark overnight borrowing rate, which now stands at a record low of 3.
According to the BSP, loans extended under the
rediscounting facility went down by 11.
The
rediscounting facility allows banks to borrow an amount equivalent to the discounted value of its receivables.
The
rediscounting facility of the BSP is intended to support lending operations of banks.
24 billion worth of peso-denominated loans from its
rediscounting facility, up by nearly 70 percent from the P22.
The rest of
rediscounting loans were for commercial credits or 28.
The BSP introduced major reforms in its peso
rediscounting policies in 2013 in line with its lender-of-last-resort function.
Banks as well as non-bank financial institutions in three regions affected by the onslaught of tropical storm 'Maring' in September' can avail of temporary regulatory and
rediscounting relief from the Bangko Sentral ng Pilipinas (BSP).
The Bangko Sentral ng Pilipinas (BSP) announced today that the Monetary Board has approved the termination of the sunset provision in favor of thrift banks (TBs), rural banks (RBs) and cooperative banks (CBs), resulting in a unified
rediscounting window for all types of banks.
All the
rediscounting of debt is done by creditors leaving the central location late.
BOAD's access to the
rediscounting facility of the Central Bank of West African States (BCEAO) makes additional funds available to it.
Moody's further notes that the eligibility of BOAD's own debt instruments for
rediscounting with the central bank supports its funding capacity on the regional capital market which is relatively liquid.
