It may be difficult for even the most precise of business projections or the most efficient of credit appraisals to foresee these problems. It would be irrational on part of either the supervisor or the banker to cast aspersions on the intent of the borrowers in such cases.
While the shift to policy normalization of advanced economies could affect capital flows and lead to financial market volatility, this also reflects opportunities for economies like the Philippines in terms of increased trade activities. Nevertheless, the BSP remains steadfast in dealing with such spillover effects through our expanded policy toolkit.