This is driven in part by the increasing market competition as a result of liberalization and the adoption of more stringent global standards. However, we are not discounting the role that smaller specialist banks play in the evolving financial landscape. Definitely, we need smaller specialist players that can more effectively cover important niche markets that have their own unique needs.
Under this scenario, the smaller specialist players are able to complement the services offered by bigger banks. Simultaneous with the ongoing process of reform in the banking system, the BSP has also actively engaged in initiatives to promote a deep domestic capital market that will complement the presence of a resilient banking system by having an alternative pillar to cushion against external shocks.