Given the possibility of higher defaults and non- performing loans, there may be scope to offer more debt restructuring measures. The BSP supports the Financial Institutions Strategic Transfer (FIST) bill that creates asset management corporations.
The high targeted returns give cause for concern as they may trigger a need to increase the risks taken by credit institutions. This can be done on the assets side, e.g. via more risky lending. Or on the liabilities side via higher leverage ratios. I hope that the high targets are not based on this type of strategic considerations.