If, therefore, banks’ capital is to serve its purpose as a cushion in bad times, it follows that banks should hold additional capital reserves when times are good. Infrastructure and public goods Finally, what could be done to ensure that sufficient public goods are supplied for an efficient functioning of financial markets?
The champion You may ask, why is the BSP taking on FLAReS? Well, quite simply, external debt management is part of our mandate as the central monetary authority. The Bangko Sentral is mandated by the Philippine Constitution and other pertinent laws to manage the country’s external debt.