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An
academic finds the existing financial regulatory regime
too accommodating and, on Wednesday, urged the Bangko
Sentral ng Pilipinas (BSP) to throw the book at the
industry once in a while.
But
Deputy BSP Governor Nestor Espenilla Jr. rejected such a
thought, saying the focus was on balancing the risks
banks and financial institutions take every day of their
lending lives versus the rewards for their every
venture.
“From
the philosophical point of view, we try not to be a
heavy-handed regulator. We do not want to impose
draconian measures,” he said, in response to a question
from the floor at the end of his presentation on
financial risk-management practices and regulations in
the country.
Academician and risk-management professor Felixberto
Bustos Jr. noted in the open forum that
Indonesia
requires even its bank tellers to undergo rigorous
risk-management training as condition for employment,
something not required of its counterparts in the
Philippines.
A series
of BSP mandates have elevated the banks’ awareness on
risk management since 2001.
Guidelines recognize there should be margins of safety
for such elements as credit, operational and market
risks that financial institutions face with each
transaction.
“Our
focus is on the balance of risks and returns on the
things that are important,” Espenilla said.
He said
Philippine banks are required to meet the minimum
10-percent risk-based capital adequacy standard which is
above the international 8-percent norm. |
