*  *  *  Introduction While sourced in sub-prime credit losses, the Global Financial Crisis (GFC) was felt by most countries, including Asia Pacific countries, as a massive liquidity shock. This was felt in banking systems as a loss of market liquidity (ability to sell assets) and as a loss of funding liquidity (ability to issue securities).
In fact, the BSP has approved a number of measures to assist MSMEs during this crisis as well as hasten their recovery and ensure sustainability of operations in the post-crisis period. These measures include allowing banks to report MSME loans as part of their compliance with the BSP’s reserve requirement.