Now, these same countries are borrowing more cheaply than they did in 2007, prior to the eruption of the crisis – even though they are now carrying considerably more debt than they were back then.1  1  There is obviously the potential for multiple equilibria here.
Meanwhile, thrift banks and rural and cooperative banks want to fast track digitization initiatives to reduce operating expenses. Nevertheless, banks remained well-capitalized as the capital adequacy ratios (CARs) at 15.3 percent as of March 2020. This is well-above the minimum thresholds set by the BSP at 10 percent and the Bank for International Settlements (BIS) at 8 percent.