It also fosters cross-border financial integration and provides a level playing field by harmonising supervision across the euro area. Also on the macroprudential side, we see national authorities in close cooperation with the ECB being very active in further mitigating the emergence of possible systemic risks, especially with respect to residential real estate developments.
The BSP’s contributions to the overall stabilization efforts fall under the third pillar. We expect that the economy will recover more strongly once fiscal and monetary stimulus gain traction and workers and firms resume operations. We expect a U-shaped recovery for the Philippine economy once the fiscal and monetary stimulus measures gain traction over the next few months.