To sustain the positive growth and inflation dynamics in the country, the BSP enhanced the implementation of inflation targeting through the adoption of the interest rate corridor (IRC) system. The IRC enhances the link between the BSP’s monetary policy stance and financial markets, and from there its impact on the real economy.
A second kind of post-crisis regulatory reform with a macroprudential influence is the new set of quantitative liquidity requirements, including the now-adopted liquidity coverage ratio (LCR) and the internationally agreed-upon net stable funding ratio (NSFR) soon to be considered for adoption by U.S. banking regulators.