These include, among others, the PHP300-billion (or approximately $ 6 billion) repurchase agreement with the national government, opening of a window for purchases of government securities in the secondary market, and advance remittance of PHP20 billion in dividends to the national government. The estimated BSP liquidity injection to the financial system is about PHP1.3 trillion, equivalent to 6.7 percent of the country’s GDP.
The envisaged creation of a single supervisory handbook by the EBA is complementary to this approach. Best practices should become standard practices. The single supervisory handbook should also ensure that in cases where banks are supervised in a decentralised manner within the system, practices are consistent across countries.