These include the recent approval to impose counter-cyclical buffers (CCyB) and the approval of the extension of the observation period for the Basel III Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR), among others.
These tools allow the BSP to manage the build-up of systemic risk in the financial system by setting aside additional capital as reserves during good times and as insurance or buffers for bad times. Despite all these positive developments, there are still challenges on the horizon.