Our discussion today is meant to provide inputs for the assessment of policies that could help improve the banking system’s risk management processes and efficiency as well as provide a leverage to stimulate the diagnosis of, and improvements in, the supervisory framework. I take a special interest in today’s topic for two main reasons.
The first reason is that next month will mark the beginning of the process of aligning our existing supervisory framework with the standardized approach of Basel II by Philippine banks, which is a shift in bank capitalization standards approved by the Monetary Board in June 2006.