Bangko Sentral rediscounting loans to banks up 70% in 2012 

The Bangko Sentral ng Pilipinas lent P46.5 billion to banks in 2012, up by 70 percent from P27.37 billion a year earlier.

 

The loan transactions were under the central bank loan rediscounting facility. 

 

The surge in rediscounting loans were driven by the 3.5-percent record low interest rate, Bangko Sentral noted.

 

Banks borrow from the central bank rediscounting window to support commercial lending operations, with the collectibles of borrowing banks serving as collateral. The facility supports bank lending to individual and corporate clients. — VS, GMA News