MANILA – The Philippines, along with some Association of Southeast Asian Nation
countries, are in the “sweet spot” in terms of growth and monetary policy,
Moody’s Analytics said.
In a report dubbed “ASEAN
Outlook: A Bright Spot” penned by Katrina Ell and Fred Gibson, Moody’s
Corporation’s economic analysis arm, said that for one, central banks in these
economies have the leeway to further cut rates if need arises, a government press
release said.
Indonesia is the most aggressive
in easing rates in the current cycle with a total of 100 basis points followed
by the Philippines with 75 basis points, it said.
Malaysia’s central bank, on the
other hand, is considered to have the “most sophisticated” financial system
among the ASEAN-4, which groups the Philippines, Malaysia, Indonesia and
Thailand, as it has maintained its policy rates but implemented a tighter
consumer lending to thwart credit rise.
It is also “expected” to
spearhead in the region the implementation of the third wave of the risk-based
financial strength gauge of banks known as BASEL III, which is targeted to
ensure banks’ capacity to withstand financial shocks, the press release said.
BASEL III is the latest
modification developed by the Basel Committee on Banking Supervision, which was
set forth of the Bank of International Settlement, “to strengthen the
regulation, supervision and risk management of the banking sector.”
According to the BIS website
BASEL III aims to improve the banking sector's ability to absorb shocks arising
from financial and economic stress, whatever the source; improve risk
management and governance; strengthen banks' transparency and disclosures.
The third modification in the
BASEL rules targets to increase resilience of banks in periods of stress
through bank-level regulations and through macro level by addressing risks that
can build up across the banking sector.
It is scheduled to be fully
implemented by 2014 but some central banks have announced their intention to
implement it earlier because banks in their respective areas are prepared to
meet the more stringent requirements of the new rules. The Philippines, for
one, will implement it starting January 1, 2014.
ASEAN groups the countries Brunei
Darussalam, Cambodia, Indonesia, Laos, Malaysia. Myanmar, Philippines,
Singapore, Thailand, and VietNam.
Relatively, Moody’s Analytics
does not see any reason for central banks to further cut rates amid the weak
global economy, which it projects to improve by mid-2013, but it stressed that
because of the policy space central banks have the capacity to ease rates
further if pressures increase. *PNA
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. Since we are currently changing the platform of www.yourvietnamexpert.com, you may contact us at: sbc.pte@gmail.com, provisionally. Many thanks.
No comments:
Post a Comment