The Philippine banking system is the only one, out of the 69 jurisdiction that it rates, which Moody’s judged as having a positive outlook. This sound performance of the banks was due to progressive implementation of deep reforms and prudent risk-taking activities of banks despite the ample liquidity in the global economy.
This is also referred to as “regulatory sandbox” which provides an opportunity for innovators to participate in the financial system as players in their own right or as partners of more traditional players like banks. This approach has been proven useful since it enables the BSP to strike the right balance between innovation and safety while providing economic benefits to the banking public.