Principle 23 – Obligations on home-country supervisors In terms of Principle 23, “banking supervisors must practice global consolidated supervision over their internationally active banking organisations, adequately monitoring and applying appropriate prudential norms to all aspects of the business conducted by these banking organisations world-wide, primarily at their foreign branches, joint ventures and subsidiaries”.
Second, on external sector policy – the BSP adheres to a flexible exchange rate system and to an appropriately designed foreign exchange regulatory framework. The BSP also has in place an external debt management strategy that helps promote debt sustainability. As a result, we have seen the emergence of strong external payments dynamics, providing comfortable buffers against external shocks.