In the former case, complacency about actual risks can mean taking greater risks within the same risk budget. 4  BIS Review 170/2010  These dynamics helped compress spreads and boost asset prices in the run-up to the crisis. They also made financial institutions increasingly vulnerable to a sudden reduction in both market and funding liquidity.
We expect loans to the MSME to soar. Based on the BSP data, the Philippine banking system continued to support the MSMEs during these difficult times.