Lending averse Philippine banks—awash in cash thanks to the prevailing low interest rate regime—swamped the central bank’s auction of short-term debt for this week and driving yields lower, data from the regulator showed on Wednesday.
All told, local lenders tendered P749 billion worth of bids for the 7-, 14- and 28-day term deposits and securities offered by the Bangko Sentral ng Pilipinas (BSP) this week, with the regulator making a combined full award on all three tenors of P570 billion.
“The results in today’s term deposit facility auction reflects the continued normalization in market participants’ sentiment on liquidity conditions, amid ample supply in the financial syste…
Keep on reading: Lending-averse banks swamp BSP with over P500B in short-term loans