BSP: Loans to banks up 22% in Q1

The Bangko Sentral ng Pilipinas disbursed nearly P11 billion in peso-denominated discount loans to banks in the first quarter of 2013, 22 percent more than the P8.99 billion it lent them in the same period last year, the central bank reported Monday.

The BSP granted $46.1 million in dollar-denominated loans as well, also under its rediscounting facility, up 38 percent from $33.3 million in the first quarter of 2012.

The higher demand for loans by banks came amid expectations that loan applications from consumers and businesses will also rise this year as the economy continues to grow, boosting consumption and investment.

Loans granted by the BSP under its rediscounting facility will support borrower banks’ own lending operations. The banks' receivables serve as collateral. — BM, GMA News