PHI CB Rediscounting Enhancements


On Sep. 24, PHI CB announced rediscounting facility enhancements.


  • PHI CB enhanced rediscounting facility, replacing with Discount window facility (DWF).
  • Discount Window Facility
  • 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.

Regulators PHI CB
Entity Types Bank
Reference Cir 1202/2024, PR, 9/24/2024
Functions Compliance; Financial; Treasury
Countries Philippines
Category
State
Products Banking; Loan
Regions AP
Rule Type Final
Rule Date 9/24/2024
Effective Date 11/24/2024
Rule Id 227040
Linked to N/A
Reg. Last Update 9/24/2024
Report Section International

Last substantive update on 09/26/2024