All these tools are mainly intended to remove information and cognitive asymmetries, and their undesired consequences for the proper functioning of financial consumer markets. In this sense, one could say that they do not depart from the traditional paradigm, whereby the individual’s choices should not ultimately be replaced or unduly influenced by those of the regulator.
Through a series of tightening measures, we communicated to the market then that players should begin to take stock of how they were assessing and pricing risk. In a way, the BSP was reminding banks (and the general public) that interest rates would not remain low forever, and that there is need to re-think business models and investment strategies.