THE Monetary Board, the policy-making body of Bangko Sentral ng Pilipinas, approved the termination of the sunset provision for thrift, rural and cooperative banks as these lenders are no longer dependent on the funding offered by the regulator.
The board said in a statement Tuesday the move resulted in a unified rediscounting window for all types of banks.
Reforms in 2013 were made to bring the BSP peso rediscounting policies in line with its lender-of-last resort function through circular 806 dated Aug. 15, 2013. The circular established, for a prescribed period, two separate rediscounting windows namely RW I for universal and commercial banks, and RW II for thrift, rural and cooperative banks.
Thrift banks were given a sunset period of five years or until Nov. 15, 2018 while rural banks and coop banks were given 10 years or until Nov. 15, 2023 to access the window number two at the then existing terms.
These banks were expected to use the transition period to improve their deposit mobilization capacities and increase the utilization of other funding sources, thus reducing their dependence on BSP funding over time.
“The Monetary Board noted that based on the statistical data of thrift, rural and cooperative banks, these banks are no longer dependent on BSP funds, warranting the shortening of the sunset period. This was validated by the results of a conducted survey of rediscounting banks and through consultative meetings with banking groups,” the board said.
“Following the termination of the sunset provision, all banks shall access a unified rediscounting window which shall adopt the terms under RW I,” the board said.