Still on speed, the Financial Institutions Strategic Transfer (FIST) Act was signed into law last February and the BSP issued its implementing regulations in May this year—even as banks’ bad debts remain manageable to date. The FIST law is a pre-emptive measure to ensure banking sector stability in case of significant spike in loan defaults.
On scale, the BSP has done quite a lot to respond to the crisis. We have so far injected Php2.3 trillion in liquidity to the financial system, equivalent to 12.8 percent of GDP (as of 14 October 2021). Another key facet of the BSP’s responsiveness is our push for sustainable finance. The BSP, in April 2020, issued the Sustainable Finance Framework.