Last month, the Monetary Board excluded loans guaranteed by multilateral financial institutions (MFIs) where the Philippine Government is a member or shareholder, from the regulatory limits on banks’ loans to their subsidiaries and affiliates.This will boost available resources for the funding of big-ticket projects, including infrastructure.
Speed in putting corrective regulatory measures in place Issues such as the large size of mega financial institutions and adequate capitalization in the financial industry remain matters which need to be addressed as a matter of urgency. While these matters have been flagged, actual corrective measures have not been put in place with a long term perspective, but have been mostly stop-gap measures.