THE Bangko Sentral ng Pilipinas (BSP) has introduced a new discount window facility (DWF) that will allow banks to directly offer government and central bank securities in exchange for advances.
THE Bangko Sentral ng Pilipinas has introduced a new discount window facility that will allow banks to directly offer government and central bank securities in exchange for advances.The central bank's policymaking Monetary Board approved amendments to the Manual Regulations for Banks. Circular 1202 detailing the changes will take effect two months after its publication.The BSP currently only rediscounts loans, accepting government securities as additional collateral.
'Banks can tap existing rediscounting lines until these lines expire a year after their effectivity, but only for rediscounting loans,' it explained.All eligible banks can access their DWF line based on their total credit score from the Credit Information System. The system evaluates the bank's creditworthiness by considering both numerical and qualitative factors.
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