The Bangko Sentral ng Pilipinas (BSP) trimmed its losses in the first three quarters of the year due to lower interest expenses as a result of the decline in funds in special deposit accounts (SDA).
Data released late last week showed the BSP’s net loss fell 72 percent to P19.38 billion in January to September this year over the same nine months in 2012.
The decline in the central bank’s losses came despite a slight drop in revenues. The BSP’s total revenues slipped by 7.7 percent to P46.5 billion, central bank data showed.
This was traced to a drop in the BSP’s interest income, which eased to P24.55 billion from P30.79 billion last year. However, the BSP’s miscellaneous income, which it gets from its investments and regulatory fees paid by banks, increased slightly to P21.95 billion.
The drop in the BSP’s expenses outpaced the decline in revenues for the nine-month period. Its expenses fell 20.8 percent to P65.88 billion from P83.14 billion last year.
Interest expenses reached P46.01 billion, declining 33.62 percent year-on-year. This was due mainly to the drop in funds parked by banks in the BSP’s special deposit accounts. Earlier this year, the BSP introduced new rules that banned non-pooled individual investments in SDA accounts. The BSP ordered banks to withdraw 30 percent of these covered funds last July. The remaining 70 percent will have to be withdrawn by the end of this month.