The Bangko Sentral ng Pilipinas (BSP) plans to require domestic systemically important banks to maintain access to its Discount Window Facility (DWF) and test that access every year, according to Philstar.

These reforms aim to speed up liquidity support during periods of funding stress.

The DWF is a short-term credit facility banks can tap for liquidity, using eligible customer loans or government and BSP securities as collateral.

Systemically important banks, those whose size and interconnections make them critical to the wider financial system, will need to maintain a DWF line and undergo an annual access test, with three months to comply once the circular takes effect.

Other banks are encouraged to do the same.

Maintaining a line won’t guarantee automatic borrowing, though. BSP still approves each withdrawal.

Banks that fail to meet financial-soundness conditions, such as keeping their non-performing loan ratio at or below the industry average, can only borrow against government or BSP securities.

Separately, BSP proposed simplifying how banks apply for the DWF, according to BusinessWorld.

Banks would only need to submit a signed board resolution authorising their application, along with collateral details and at least two designated signing officers, cutting out most other administrative requirements.

BSP also plans to ease oversight on select transactions, including those tied to real estate, and offer financially sound banks more collateral options.

“The DWF is not intended as a substitute for banks’ sound liquidity risk management practices, including adequate liquidity buffers and access to market-based funding sources,” BSP said.

The DWF replaced BSP’s older rediscounting facility in 2024. Banks’ borrowings through it reached P60.1 billion in 2025, according to BSP data.

Featured image: Edited by Fintech News Philippines based on an image by Magnific.