We are in the process of putting up a framework for Domestic Systemically Important Banks, wherein stricter requirements including the imposition of capital surcharge will be applicable. We issued a consultation paper outlining our proposal to the industry for comments. We also brought important changes in the board room of banks, requiring diversity of board members, competence and periodic term renewal.
Banks are well capitalized with high capital adequacy ratio, well above both the BSP and BIS regulatory requirements. Asset quality remains good and loan quality remains satisfactory. The BSP’s stress test exercises and simulations point to favorable banking system prospects even with risks to the outlook.