DWF will allow advances to be made against both government and PHI CB securities.
Introduces Credit information system (CRIS) for assessing bank creditworthiness.
Banks must apply for a DWF line, and approval will be based on their CRIS scoring.
DWF line amount ranges from 25% to 100% of adjusted capital, valid for one year.
Circular specifies eligible credit instruments and collaterals available for rediscounting and outlines the procedures for availment, including execution of promissory notes.
Sets maturities and interest rates for different types of availments, with further details.
Eligibility and Requirements
Banks must meet all the listed eligibility requirements at the desired time of availment.
Banks with ineligible non-performing loans ratio, limited to advances against securities.
Transition
Banks can use DWF for both rediscounting loans and offering securities for advances.
Existing rediscounting loans valid 1 year after effectivity, but only for rediscounting loans; new DWF lines can be used for rediscounting and advances against securities.
All outstanding, new applications for credit lines to be treated as DWF line applications.
Effectiveness
This circular will take effect two months after its publication date, on Nov. 24, 2024.
