This is consistent with the BSP’s continuing thrust to give banks greater flexibility to respond to changing market opportunities and allow them to take risks so long as they demonstrate the ability to manage and price for those risks.
Its origins lie in 30 years of change in the organization of financial firms and markets that squeezed the traditional business model of commercial banking. The regulatory system accommodated the growth of capital market alternatives to traditional financing by relaxing many restrictions on the type and geographic scope of bank activities, and virtually all restrictions on affiliations between banks and non-bank financial firms.