What makes these numbers even more impressive is the fact that banks have available liquidity that they can deploy, if they so choose. The pursuit of financial stability Perhaps, the crux of the matter lies in those last four words: “if they so choose”.
In a market that seizes opportunities, making the appropriate choices is critical, particularly since funds being deployed belong to the public. The BSP sees these choices not only in the numerical indicators… but also in the ICAAP (Internal Capital Adequacy Assessment Program) document which universal and commercial banks submit annually. Indeed, risk management cannot be the domain of a few specialists in the bank.