Let us remind ourselves of the major shortcomings of the Basel framework prior to the Global Financial Crisis – (1) too little capital with too little going concern loss absorption capacity, (2) excessive leverage, (3) neglect of liquidity risks, (4) weaknesses in banks’ resolvability and (v) insufficient macro-prudential considerations.
The 14th anniversary of BSP finds us celebrating on several fronts – we have new facilities, an exciting exhibit at our main building lobby, and the grant of support for various social projects. Another cause for celebration is the “coming home,” so to speak, of the designs for Philippine currency that were proposed in the 1940s to the 1950s.