However, the problem of toobig-to-fail can only be eliminated when market participants believe authorities’ statements that they will not intervene to prevent failures. If creditors believe that the government will not rescue firms when their bets go bad, then creditors will have more-appropriate incentives to price, monitor, and limit the risk-taking of the firms to which they lend.
Moreover, we have existing clearing switch operators which are capable of providing the infrastructures that interconnect our payment service providers. Of course, the PhilPaSS, which allows Philippine banks to efficiently pay their clearing obligations to each other, has been there for quiet sometime. Finally, as you’ve seen earlier, we have measurement and monitoring tools that will help us determine our strengths and weaknesses.