Fourth, a numbers of challenges have emerged in monetary and debt management: To meet the emerging challenges, the Reserve Bank is taking steps to fine-tune its open market operations. This would need greater accuracy in forecasting market liquidity over the short- to medium-term.
This is manageable by any standards and unlikely to grow to the levels we have seen during the 1997 Asian Financial Crisis. In particular, total deposit liabilities reached P14.2 billion as of end-June 2020, 10.8 percent higher than year ago’s level. And here’s a silver lining: the COVID-19 pandemic has become the unexpected catalyst for the accelerated digital transformation of the banking system.