Let me share some insights on the Philippine economic outlook for 2021 and the BSP’s policy actions to support the national government’s whole-of-nation approach in addressing the current crisis. Multilateral agencies such as the International Monetary Fund, the World Bank, and the Asian Development Bank expect the Philippine economy to expand by 5.9 to 6.6 percent this year.
Financial institutions were able to enjoy a wider range of profit opportunities, through household lending and through transactions in credit derivatives with household loans as the underlying assets. The total outstanding volume of credit derivatives worldwide is estimated to have swollen more than 110 times from 180 billion US dollars in 1997 to 20 trillion US dollars in 2006.