Published January 11, 2021, 7:00 AM
The central bank’s scrutiny of domestic systemically important banks (D-SIBs) – these are large financial institutions deemed too big to fail – are heightened by enhanced D-SIBs metrics in response to rising pandemic-induced systemic threats to the financial system.
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said it is crucial to determine the true condition of D-SIBs and its impact on the Philippine banking system (PBS), the banking industry as a whole, and on the economy currently in recession.
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno (MB file)
Diokno said measures on how they monitor, assess and review the capital health of D-SIBs have been improved to “ensure that the BSP will be able to determine the true status or health of the financial system and individual banks.”
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