In sum, we are optimistic that the Philippine financial system is capable of withstanding the risks and challenges of the COVID-19 pandemic. Yet, as considerable economic uncertainty remains, the BSP continues to monitor relevant risks and vulnerabilities arising from banks’ activities through enhanced surveillance mechanism. The Philippines has already made significant strides in adopting the Basel reform package.
I have heard the modern day staff complain about estimating an accelerator effect for equipment and software and, believe me, I am sympathetic. Another place where the intervening years have made a real difference is the way in which the baseline forecast itself was put together.