There is no one such indicator for financial stability. Financial stability is therefore often defined, very broadly, as a state in which the financial system performs all of its macroeconomic functions properly. But the absence of a clear indicator with which to measure whether a monetary policy objective has been achieved can damage the credibility of monetary policy.
This should improve access to financing and capital as ratings have proven effective in enhancing the quality of microfinance institutions in terms of transparency, discipline, and overall governance. This should also promote investments in the Philippine microfinance industry. These are the circulars the Bangko Sentral issued this year to promote the further development of our microfinance sector.