This is echoed by Standard & Poors which said that “Philippine banks are well positioned to meet the new Basel III requirements, with capital ratios that are comfortably above the regulatory minimum.” Nevertheless, as gratifying as these external views may be, the challenge is still to maintain our strengths and address weaknesses that have been identified.
Risk management may provide the technical on- and off-book expertise but this has to be complemented by a strong and unwavering culture of corporate governance. To different entities corporate governance can mean several things; but for banks it may simply boil down to mitigating conflicts of interest.