This has affected confidence between counterparties and has caused disruption in the money market where banks have been reluctant to lend to each other. In early September, a number of central banks, led by the ECB, reacted promptly to alleviate this disruption through the provision of substantial liquidity injections.
For the BSP’s part, we remain steadfast in spearheading digitalization efforts and programs supporting MSMEs and the microfinance sector, which serve as financial lifelines for our microentrepreneurs. Our initiatives include bringing digital payments closer to the people by promoting its use in the most common transaction points for most Filipinos—the community markets and local transportation services such as tricycles.