Instead, it is about the risks to the system from the possible build-up of risks. Risks that could eventually spill over across stakeholders, products, transactions and sub-markets. We need therefore to be attentive to the possibility of downstream risks even when the picture upstream looks overtly robust and rosy.
This is the challenge of prudently asking ourselves constantly “What can go wrong?” and to prepare accordingly for such possibilities. To us at the Bangko Sentral ng Pilipinas, this is at the heart the very essence of ensuring financial stability. And, as complex a challenge as it may be, it represents our central policy framework moving forward.