On its part, the BSP has already issued its Internal Capital Adequacy Assessment Process (ICAAP) guidelines which aim to strengthen the risk culture within banks. Likewise, the BSP is in the process of beefing up its macro-surveillance capabilities. Mindful of the lessons brought by the global financial turmoil, the BSP has stressed the need to operationalize the guidelines on liquidity risk management.
In brief, we want a set of arrangements which facilitate: •  the intermediation of private saving and investment, fostering resource allocation so that saving earns the highest risk-adjusted return, and that those with the skills to deploy capital can get it, and at the cheapest price;  •  an efficient, reliable and safe way of making payments;  •  mechanisms for private economic entities to manage their risks (either paying others to take the risk or accepting payment to take on risk);  •  availability of suitable financing for public-sector activities;  •  the avoidance of financial crises, if at all possible, or, if not possible, at least minimisation of their severity.