For instance, a batch of risky or sub-prime mortgage advances could be lumped together and sold off as a separate “tranche” which would pay a higher rate of interest than a batch of standard mortgages. Furthermore, some institutions provided guarantees or partial guarantees to enhance the risk-return characteristics of some of these products. And all remained well as long as the property boom continued.
It bears noting that in framing the message this way, I have touched on our mandates, and what the BSP regards as its pillars of central banking. The global economy and domestic financial stability 2017 saw increased momentum in global economic growth. Many central banks reverted to more neutral positions, while some signalled the possibility of a tighter monetary policy stance over the horizon.