Since a large volume of bank and thrift loans was tied to the real estate market and backed by real estate collateral, the fall in property prices impaired the capital of a large number of depositories. These institutions reacted by curtailing new lending -the unprecedented “credit crunch” of 1990 and 1991. Not unexpectedly, our policy response was to move toward significant ease.
Once again, therefore, let us salute all the nominees and winners under our 2009 Praise Awards with a well-deserved round of applause! Let us also congratulate for a job well done all those who worked on our 2009 selection process under the Praise Committee headed by Deputy Governor Andy Suratos and Assistant Governor Juan de Zuñiga! Palakpakan din po natin sila.