Investors relied on them, often blindly. In some cases, they were obligated to use them, and regulatory capital standards were hinged on them. This crisis could not have happened without the rating agencies. Their ratings helped the market soar and their downgrades through 2007 and 2008 wreaked havoc across markets and firms.
It promotes transparency through announcement of targets and the reporting of measures that the BSP will adopt to attain these targets, as well as the reasons for and outcomes of its policy decisions, increasing accountability on the part of the BSP.