MANILA, July 7 — The Philippines’ strong macroeconomic fundamentals continue to cushion impact of negative external developments on the domestic economy and Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla Jr. said they remain watchful for any risks.
In his speech during the 1st general membership meeting and induction of Credit Management Association of the Philippines Inc. (CMAP) in Makati City, Espenilla said “the bar is raised for BSP for both external and domestic developments that may pose risks for economic and financial stability.”
He said that even as trials have been prevailed upon, new challenges continue to come up, thus, the central bank is always vigilant against new challenges such as policy normalization in advance economies.
He explained that since the Philippines is a small open market economy it “is vulnerable to abrupt shift in global market sentiments which can induce large and sudden capital flows and contribute to volatility in the financial market.”
“The BSP, ever mindful of these sources of systemic risk, continually strengthens its framework for financial risks,” he said, noting that this is targeted “to sharpen assessment of market conditions.”
“The BSP stands ready with preemptive measures to mitigate any undue risks buildup in the financial system,” he added. (JSV/PNA)
