The potentially huge effect on price stability and employment associated with bouts of serious financial instability gives ample justification. Of course, this preliminary observation underscores the fact that the identification of systemic risks, especially those based on the putative emergence of asset bubbles, is not a straightforward exercise.
On the part of the banks, CSF is a welcome program, as it provides opportunities to comply with the mandatory 8pct credit allocation required under the law – RA 6977, as amended, also known as The Act to Promote, Develop and Assist SMEs – under a more manageable risk framework.