These requirements are designed to enhance covered institutions’ resilience to liquidity stress events and is a significant step in aligning our supervisory framework with international standards. It also illustrates the BSP’s commitment to the application of proportionality in our approach to supervision. We also wish to leave no banking institution behind.
Money markets were also relatively stress-free, as reflected by the continued narrowing in Overnight Index Swap (OIS) spreads at the time. The global economy emerged from recession in the latter half of 2009, much sooner-thanexpected and at a pace that was stronger than even the most optimistic forecasts. This development proved to be the catalyst for the rally in financial markets.