It has cut the budget for its rediscounting
facility to the pre-crisis level of PHP20bn (USD450m) from PHP40bn.
Foreign guarantees for loans made in naira are now permitted, while a Rediscounting
and Refinancing Facility (RRF) has been introduced for medium and long term credit, in order to promote lending to non-oil industrial customers.
Reserve Banks, it declared, exist for the purpose of "accommodating commerce and business," a purpose they fulfill by "furnishing an elastic currency" and "affording a means of rediscounting
A member commercial bank could accommodate an increase in loan demand or currency withdrawals by rediscounting
eligible commercial paper with its Federal Reserve Bank.
The bank said on Thursday that it had created a PHP5bn special rediscounting
window for banks with small business clients who had suffered from the recent typhoons.
the Reserve Banks would provide an elastic supply of balances in response to rapid demand shifts, preventing financial panics (White 1983, pp.
When the balance in a central bank's operations account falls below an agreed target level, it is required to restrict credit expansion, generally by increasing the cost to membercountries of rediscounting
paper with the central bank or by restricting member-countries' access to rediscounting
The initial regulation provided for rediscounting
short-term agricultural, industrial, and commercial paper, defined as eligible paper.
The liberalised rediscounting
guidelines would enable banks to rediscount more loan papers and therefore, have access to additional funds that they can re-lend to the public.
BOAD's access to the rediscounting
facility of the Central Bank of West African States (BCEAO) makes additional funds available to it.
reserve requirements, regulations governing rediscounting
, open market
About RMP Capital Corp RMP Capital Corp is an international provider of factoring solutions for small to medium sized businesses, public works contractors, Rediscounting
lines of credit to independent factoring companies, and Import-Export Factoring worldwide.