During this period, however, there may be a dent in banks’ profitability as banks provision for potential losses from affected investments. IV. Policy response to the turmoil  Despite these buffers, the BSP has not remained complacent in the face of the turmoil. What have been the BSP’s responses to the current turmoil?
The BSP’s approach to the financial turmoil has consisted of the following: 1. 2. Shoring up confidence through timely communication and transparency. •  Immediate release of information on bank exposures to troubled financial institutions. •  Continuous messaging on developments and policy changes. Ensuring that there is adequate peso and dollar liquidity.