By Joann Santiago
MANILA, Dec 10 (PNA) — Banks continue to lend less from the Bangko Sentral ng Pilipinas (BSP) rediscount facility as financial institutions continue to beef up their capital and liquidity remains high in the domestic economy.
The central bank on Wednesday reported that availment by thrift and rural banks to the BSP’s peso rediscount facility contracted by 93.1 percent year-on-year in end-November 2014 to Php 1.23 billion.
Of the total availments, 79.5 percent were extended by the banks to commercial credits; 14.9 percent percent to other credits like capital expenditures, permanent working capital, and housing.
Relatively, availments by universal and thrift bank on the central bank’s exporters-dollar and yen rediscount facility went down by 91.6 percent during the same period.
Total availments during the 11-month period amounted to USD 9.2 million and was extended to three exporters.
And still, there was no availment under the yen facility.
The rediscount facility is where banks can take out loans by pegging their availments against the loans they have extended to their clients. (PNA)