But in my view we should not jump the gun after the first green shoots and change the course. In policy-making, it is often better to be safe than sorry. This goes certainly for monetary policy. As a consequence of the slowdown, (almost) all major central banks needed to put monetary policy normalisation on hold and instead maintain an accommodative policy stance.
The average capital adequacy ratio hovers in the 15 percent territory, higher than the BSP’s minimum requirement of 10 percent and the 8 percent prescribed by the Bank for International Settlements. Bad debts remain manageable, with the non-performing loans (NPLs) of banks settling at 3.7 percent as of October 2020.