While the shift to policy normalization of advanced economies could affect capital flows and lead to financial market volatility, this also reflects opportunities for economies like the Philippines in terms of increased trade activities. Nevertheless, the BSP remains steadfast in dealing with such spillover effects through our expanded policy toolkit.
Or should it be kept as a lean institution, in charge of coordination among SSM countries and other EU countries, and among central banks and supervisory authorities not represented in the SSM? The debate is in its early stages. Much will depend on how many EU countries join the SSM.