He added that bank can also 'rediscounted
promissory notes of the cooperative up to a five-years term.' 'We can reimburse or rediscount the cooperative's production loans which typically have five-year terms, those for long gestating plants.'
Banks are also, on a case-by-case basis, allowed to restructure the outstanding rediscounted
loans of their end-user borrowers affected by the tropical cyclone.
Rediscounting banks will also be allowed to restructure with the BSP their outstanding rediscounted
loans of end-user borrowers who were affected by the typhoon, on a case-to-case basis.
Allow banks to restructure with the BSP, on a case-to-case basis, the outstanding rediscounted
loans of borrowers affected by the El Nino phenomenon.
About76.1 percent are rediscounted
loans for commercial credits and 23.9 percent toother credits.
Being a new bank, having a large share of assets in loans, and having a large share of loans rediscounted
decreases the expected time until the bank fails.
One solution--a central banking institution, likely a public institution--would be willing to hold self-liquidating real assets through the discount function, essentially exchanging private claims (the asset to be rediscounted
) for public claims (currency).
Although Reserve Banks rediscounted
only loans and securities that were eligible as defined by the Federal Reserve Act, Board officials argued that commercial banks should be forced to liquidate their speculative loans before being permitted to rediscount (or borrow against) eligible paper.
He urged that the Federal Reserve Board not only approve this arrangement, but also permit the bills to be rediscounted
Establishment of an L10 million (US$750,000) fund in the National Bank for Agricultural Development (Banadesa) for rediscounted
credits granted by campesino groups; an L15 million (US$1.1 million), to be administered by Banadesa, for "the reformed campesino sector"; an L10 million fund (US$750,000) in INA to purchase of land for ethnic groups and the campesino sector; .
The BSP would also allow rediscounting banks to restructure, on a case-by-case basis, the outstanding rediscounted
loans of El Nino-affected borrowers.