The series of banking reforms put in place over the last five years, and among others, the inherent conservatism and the domestic orientation of banks, as well as the BSP’s phased-in approach to embracing financial innovation, have resulted in minimal exposure of the banking system to the troubled international financial institutions.
In addition, banks continue to be capitalized above the BIS standard and BSP  BIS Review 1/2009  1  regulatory requirement; bank balance sheets are at their strongest since the 1997 Asian financial crisis; and assets continue to grow. What do we foresee for 2009? 2009 will be a critical year. It could define how we will perform when the markets turn around.