Philippines to tighten watch
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With the continued rise of liquidity in the economy, which had pushed the Philippine Stock Exchange Index above 7,000 points, the Bangko Sentral ng Pilipinas (BSP or central bank) may impose stricter underwriting standards and higher capital requirements
Although developments indicating that the capital markets will remain vibrant are welcome, the BSP said it was mindful of the need to temper asset price inflation to ensure that the country’s favourable economic performance is not disrupted.
BSP Governor Amando Tetangco Jr. said the central bank wanted the banking system to help channel more funds to job-generating and long-term investments, rather than short-term income opportunities. “Our goal is to create a lasting behavioural change in the market, encourage a longer-term perspective among market participants.”
