The budgetary instrument that is currently being operationalised has a different aim, namely to foster competitiveness and convergence, which is an important aim in itself, albeit already largely addressed by existing instruments. But it is not designed to provide macroeconomic stabilisation. And even if it were, it would not be large enough to do so effectively.
The capital adequacy ratio (CAR) of banks stood at 15.3 percent on solo basis and 15.9 percent on consolidated basis as of end-March, well above the 10 percent minimum requirement of the BSP and the 8 percent prescribed by Basel. This shows banks have ample capacity to absorb shocks.