That improved performance has doubtless contributed to lower inflation-related risk premiums, and the lowering of these premiums is reflected in significant declines in nominal and real long-term rates. Although this explanation contributes to an understanding of the past decade, I do not believe it explains the decline of long-term interest rates over the past year despite rising short-term rates.
Corporate governance and disclosure To complement the above initiatives, the BSP has also been keen on promoting a culture of good corporate governance in the banking system. We have correspondingly issued appropriate regulations anchored on effective corporate directorship, sound audit and compliance systems, and enhanced disclosure in financial reporting.