Let me now move on to the three major reforms which we are pushing for. First, with the passage of R.A. No. 11439, the BSP is clothed with clear authority to issue broader set of rules and regulations on Islamic banking. The supervisory and regulatory powers of BSP over Islamic banks are also reiterated in the law.
Tender rates for longer-term operations would increase, and those for shorter-term operations would be reduced. Thus, the “term structure of tender rates” would become steeper, similar to the term structure of money market interest rates. However, the rates on the main refinancing operations (with a one-week maturity) convey the monetary policy stance.