The Philippines: Rediscount facility untouched in Mar 22

  • BANKS left the rediscount facility of the central bank untouched in Mar 22 as there was ample liquidity in the financial system to service their lending requirements as the economy reopened further.
  • No availments were made from the peso rediscount and the exporters’ dollar and yen rediscount facility in the first three months of 2021, the Bangko Sentral ng Pilipinas (BSP) said.
  • In 2021, lenders only tapped the facility in June, July, and September. These borrowings amounted to PHP6.12mn, significantly smaller than the PHP26.9bn in 2020.
  • The central bank’s rediscount facility gives lenders 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 denominations to extend credit to corporate or retail clients and service unexpected withdrawals.

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