Bent on pushing more money out of vaults and into the economy, the Bangko Sentral ng Pilipinas has issued a memorandum to banks that will further limit their access to the BSP’s special deposit account (SDA).
The recent rate cuts on the central bank’s special deposit account (SDA) facility may induce banks to go to other instruments, including higher yielding government bonds, or extend more loans to clients, according to DBS Group.
The Bangko Sentral ng Pilipinas is considering a further reduction in the interest rate on the special deposit accounts (SDAs), noting that there is still room to lower it despite the significant cut made in January.
The recent cuts in the interest rates on the Bangko Sentral ng Pilipinas’ special deposit accounts (SDAs) is not expected to trigger the pullout of a substantial portion of the banks’ more than P1.6 trillion in deposits in this facility.
The Bangko Sentral ng Pilipinas has cut interest rates on funds placed in its special deposit account (SDA) facility, a move seen to push banks to withdraw portions of their more than P1 trillion in idle cash so these could be used for lending.
The peso fell on the first trading day of the week to its lowest level in about two weeks as the move of the central bank to prohibit foreign funds from being invested in its special deposit account (SDA) discouraged some investors.
Money placed by banks in the special deposit account (SDA) facility of the Bangko Sentral ng Pilipinas continued to rise, hitting a new high as of the end of September.
Money placed by banks in the central bank’s Special Deposit Account (SDA) facility started to decline in June from record levels seen in previous months, according to the Bangko Sentral ng Pilipinas. BSP data showed that money in SDAs reached P1.39 trillion as of end-June this year, a decline from a high of P1.5 trillion [...]
