Rediscounting, Savings Mobilization, and the Rural Banking System

Abstract

The paper assesses the performance of rural banks, particularly the role of rediscounting and savings mobilization in enhancing their viability. Evidence suggests that Philippine rural financial institutions can mobilize savings as a reliable source of funds for a financial market which is becoming increasingly dependent on competition and efficiency. It notes that new policies geared towards the rural banking system will be effective if they are viewed as permanent rather than temporary.