benjamin e diokno : macroprudential policy strategy framework the case of the philippines opening statement by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the public release of the macroprudential policy strategy framework : the case of the philippines, 22 july 2020. * * * good morning to all our friends from the financial market, multilateral agencies and the media. three weeks ago, the fscc held a press briefing with two important messages : first, that 2019 coronavirus disease ( covid - 19 ) is different from prior crises because it is a direct shock to the real economy, to supply chains, and to the welfare of families and individuals. second, based on our reading of a wide array of indicators and our own surveillance of what is happening on the ground, we do not see any indications as of yet that our financial market has been impaired irreparably. as the council convened after the global financial crisis, our task has always been about ensuring the health of the financial system so that it remains a pillar for the financial consumer. financial authorities have come to understand that there is something about the risk behaviors of various financial market stakeholders that creates outcomes for the system that cannot be tracked by simply overseeing the balance sheets of individual market stakeholders. as i mentioned at our last press briefing, that “ something ” is the way risk behaviors connect, complement, and correlate with each other, creating new channels of risks through contagion. today, the council is again with you to share another milestone. just as we had the opportunity three weeks ago to launch the financial stability report on its maiden semestral release, we have invited you today for the public release of the country ’ s macroprudential policy strategy framework. that is a bit of a tongue - twister but at its core, the framework reflects how your financial authorities define systemic risks, how we are monitoring changes in risk behaviors, and how we are moving forward in managing this policy concern. the overarching concern is that of financial stability which is specifically about managing systemic risks. these risks, in turn, are specifically defined, consistent with global understanding and practice. and the means for taking action are what we refer to as macroprudential policy. to help put all of the different components, the framework document includes a scoping statement that defines the perimeter of our work on systemic risk management.

benjamin e diokno : thrift banks in the next decade - navigating the digital future speech by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the chamber of thrift banks convention, manila, 12 october 2020. * * * on incentivized lending. we have reduced the credit risk weights of loans granted to msmes that are current in status to 50 percent from 75 percent for qualified msme portfolio and 100 percent for non - qualified msme portfolio. moreover, new peso - denominated loans to msmes, and certain large enterprises that were critically impacted by the pandemic shall be recognized as forms of alternative compliance with thrift banks ’ reserve requirements against deposit liabilities and deposit substitutes. as of end - july 2020 ( latest data ), thrift banks were able to provide a total of p80. 0 billion loans to msmes. these were used as alternative compliance of thrift banks with the reserve requirements as of end - september 2020. to enable stand - alone thrift banks to continue to support their rural community - based clients, the bsp deferred the implementation of the revised risk - based capital framework applicable to stand - alone thrift banks. the revised capital adequacy framework will now take effect on 1 january 2023 instead of 1 january 2022. we listened to ctb ’ s request that the minimum liquidity ratio of stand - alone tbs and r / cbs be reduced from 20 percent to 16 percent until end - december 2020. on promotion of continued access to financial services. this ensures access to formal financing channels by retail clients, who would be deeply affected by the community quarantine arrangements. we have relaxed the kyc requirements like the presentation of valid ids by retail clients and micro - business owners to facilitate their access to formal financing channels. the bsp granted operational relief measures for foreign exchange transactions of thrift banks authorized to engage in foreign exchange transactions to facilitate the public ’ s access to foreign exchange resources for financing of legitimate transactions. on support for continued financial services delivery. the bsp granted operational relief measures to assist bsp - supervised financial institutions in focusing their limited resources on the delivery of financial services and support their subsequent recovery efforts. the bsp also provided relief on the non - imposition of penalties on legal reserve deficiencies for a period of six months subject to bsp approval. moreover,