In practice this has been manifested in an effort to focus on achieving the medium term (three years) inflation target set by the government and avoiding excessive exchange rate volatility consistent with the free exchange rate regime adopted since 1998.
There are also built-in incentives for creditor banks. For instance, housing microfinance loans are eligible as alternative compliance to mandatory credit allocation to agrarian reform and other agricultural credit. In addition, housing microfinance loans shall have an assigned riskweight of as low as 0% (zero) when guaranteed by the Home Guarantee Corporation or a 50% risk-weight if it is not guaranteed.