Nonetheless, we continue to monitor developments in the global growth picture as the weakening of domestic demand in the US and other advanced economies could create significant spillovers into developing and emerging economies such as the Philippines. There are at least two channels through which a sharper-than-expected slowdown in the US could directly affect the domestic economy. One, through the trade channel.
In fact, the establishment of Banking Union was inspired by the American FDIC. However, it fell short of providing the SRF or EDIS with right instruments and means to guarantee financial stability. For this to happen, a clear definition of what constitutes public interest and critical functions is required.