1Rediscounting 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 its end-user borrowers.
Commercial credits resulting from the importation, exportation, purchase of non-perishable and insured goods or products in Monetary Board-approved storage facilities cornered 35.48 percent of the total rediscounting
loans represented borrowings against banks' credits on transactions related to commercial, production and "other credits."
Furthermore, the Court said De Leon committed another dishonesty when he did not truthfully disclose the actual rate of interest earned from the rediscounting
business of Mendoza.
In 2013, reforms were made to bring the BSP Peso rediscounting
policies in line with its lender-of-last-resort function through Circular No.
facility enables banks to borrow from the Bangko Sentral ng Pilipinas, using its borrowers eligible papers as collateral.
Foreign investors appreciated the preemptive liquidity measures implemented by the central bank on the onset of the global downturn like the 200 basis points cut in the central bank rates, the increase in the central bank's rediscounting
rates, and the opening of a dollar rediscounting
For example, we have the rediscounting
refinancing facility, the stocking facility, the foreign input facility, the local input facility and guarantees and insurance facilities; these are some of our fund lending options.
The benefit to size is somewhat larger and the negative effect of financing assets by rediscounting
paper is significantly stronger.
McAdoo also backed compulsory rediscounting
among Federal Reserve banks since this would promote a flow of currency and credit.
One of the original purposes of the Federal Reserve Act, for example--"to afford means of rediscounting
commercial paper"--sounds as foreign to my ears today as "asymmetric directive" or "electronic payments" would have sounded to the Atlanta Fed's first president (then called governor), Joseph McCord, early in the last century.
Most members of the Board, and officials of some Reserve Banks, believed that Federal Reserve credit should be extended only at the initiative of member commercial banks through the rediscounting
of commercial and agricultural loans.