00:00The Banko Sentral ng Pilipinas plans to update its resolution framework for troubled banks in 2025
00:07and implement a Countercyclical Capital Buffer, or CCYB,
00:12to ensure that banks have adequate capital whenever financial stress occurs.
00:17These plans were shared by BSP with the International Monetary Fund, or IMF, during their article for consultation.
00:25IMF recognized the progress made on the neutral CCYB,
00:29which the central bank adopted in 2018 but has not yet been activated.
00:35BSP intends to create a decision framework first,
00:38confident that the banking system can continue to hold sufficient capital buffers.
00:43CCYB ensures banks have enough capital to times of financial stress,
00:48initially set at 0%, but is adjustable up to 2.5%.
