What is different today is the focus. Now the goal is to make capital more efficient in mitigating potential losses from the type of bailouts we saw in other jurisdictions. Today, we are (in a sense) being “stricter” about what goes (or does not go) into both the numerator and the denominator of that ratio.
By doing this, we are broadening the risks that are accounted for by such capital. This is the BSP view on CAR from a financial stability perspective. The CAR should not keep only your compliance officer awake at night… It should concern everyone here, including you who are in the confines of your trading rooms….