Against this backdrop, the BSP is onboarding banks in the country's sustainable and financial inclusion agenda. We have put in place regulations that encourage banks to provide financing to green projects and incorporate sustainability principles in their operations. Moving on to the third pillar of central banking-a safe and efficient payments and settlements system.
Given the potential for procyclical actions, the size of the asset management sector and the risk of liquidity problems, some analysts have noted that the usual indicators of vulnerability that were designed for previous crises (mostly bank-driven), will no longer be very useful. 3 What is the appropriate policy response to the challenges posed by macrofinancial linkages?