BSP, Czech National Bank agree on P1 tech exchange
The Bangko Sentral ng Pilipinas (BSP) announced yesterday the signing of a memorandum of understanding with the Czech National Bank (CNB) to boost the exchange of information and technical support in the two countries’ banking systems.
The BSP said the MOU on cooperation provides in greater detail the two financial regulators’ commitment to foster greater information exchange and cooperation on regulatory systems, supervisory procedures as well as capacity building programs on areas of mutual interest.
The central bank said the agreement would also serve as the framework for closer coordination and beneficial cooperation between Manila and Prague in accordance with the Basel core principles for effective banking supervision.
Meanwhile, BSP Governor Nestor Espenilla Jr. and Bank of Thailand Governor Veerathai Santiprabhob signed a similar MOU on banking supervision in December last year.
The agreement also served as a solid foundation for effective supervision of banking institutions operating in both countries in accordance with the principles set out by Basel.
Both the Philippines and Thailand committed to foster greater information exchange and cooperation in the areas of licensing, on-site examinations, supervisory colleges, and crisis management.
The Basel Committee on Banking Supervision has adopted standards including the strengthening the definition of regulatory capital and introduction of capital buffers to withstand economic and financial stress, among others.
The BSP has been proactive in adopting measures to keep the country’s banking sector stable.
The BSP has adopted the net stable funding ratio (NSFR) under Basel III for the larger universal and commercial banks to further strengthen their ability to withstand liquidity stress.
Under the NSFR, universal and commercial banks are required to put up a 100 percent buffer enough to cover one year. The adoption of the NSFR would also be patterned after the liquidity coverage ratio through a phased in period wherein banks would be given until the end of the year for the observation period before full adoption by January next year.