This is necessary to avoid regulatory arbitrage between the banking and non-banking sectors.24 * * * 21  22 23 24  As the ESRB highlighted “for example, six countries (Denmark, France, Ireland, Malta, Netherlands, Norway and Sweden) use gross income to define income-related measures, while other Member States use income in net terms.
Our policy actions have provided a steady supply of liquidity that has allowed banks to continue lending and performing their role as fund intermediaries. Market interest rates have trended downward following the policy rate cuts by the BSP, as banks pass on lower lending rates to their borrowers. Inflation, meanwhile, continues to be subdued, and we continue to expect favorable inflation dynamics going forward.