As a result, the Capital Market Working Group of the BSP, the BTR, and the SEC, with the support of the Department of Finance, joined hands in developing the Philippine Roadmap to accelerate the development of the domestic debt market.
For precisely the same reasons – fall in value and credit downgrade – banks will need to provide additional capital against monies they have lent to sovereigns. This could put banks on a collateral spiral and erode overall financial stability.