Similarly, the collateral offered by many financial institutions to back the borrowing they needed to finance their operations also became questionable. As a result, these institutions found credit much more difficult to obtain, or much more costly, or both. Funding difficulties for financial institutions clearly have the potential to turn into tighter credit conditions for households and nonfinancial businesses alike.
Most notable of these collaborative efforts is the establishment in 2004 of the Financial Sector Forum (FSF), which is similar to the Joint Forum but only on a national scale. The FSF is comprised of the three supervisory agencies – the BSP, the SEC and the IC – together with the Philippine Deposit Insurance Corporation (PDIC).