In 2014, BSP started preparing banks on the use of the expected loss methodology through Circular No. 855. Parallel to this, we will enhance the Pillar 3 disclosure requirements for incorporation in banks’ annual reports. The guidelines on accreditation of external auditors across sectors are also being reviewed. These reforms promote market discipline, transparency, and resiliency.
Financial market development Part and parcel of our strategic policy reforms is to accelerate financial market development with particular focus on local currency debt and foreign exchange (FX) markets. We envision a more balanced financial ecosystem where the banking system is complemented by a deep and liquid capital market.