World Financial Crisis? Real international attention on reducing the risk to the financial system, which led to the policy approach known as' macroprudential policy'development. This policy uses prudential instruments for risk management (systemic) system-wide, which are able to develop financial boom-bust cycles. Macroprudential policy is intended to promote greater stability of the financial system:

construction of residences further financial system during times of faster credit growth and the increase in the level or abundant liquidity; and

decreasing the excessive credit growth and activities.

This short video - Arms - explains the role of macro-prudential policy tools and Reserve Bank smootha boom-bust cycles.

December 2013 Reserve Bank announced the introduction exemption for high-GIB construction loans. Questions and answers on the exemption construction loans were announced. Documentation related consultation and draft BS19 were released December 20, 2013.

August 2013, the Reserve Bank has announced plans to meet the temporary restrictions on high loan-to-value (GIB) residential mortgage loans. October 1, 2013, banks must prohibit new residential mortgage loans to GIB by more than 80% (deposit of less than 20%) to the value of USD over 10% of total residential mortgage loans. Reserve Bank has also released Regulatory Policy Impact Assessment. Additional information, including full details are available on page macroprudential policy implementation.

May 2013, the Minister of Finance, Mr.Hong Bill, and the governor of the Reserve Bank, Whelner Graham, signed Memorandum of Understanding (MOU) on Macro-Prudential Policy. MOU outlines the governance mechanisms for the use of macro-prudential tools, which are designed to promote greater stability in the financial system. The MOU provides 4 macroprudential instruments in the context of the Philippines:

capital buffer (CCB)

adjustments minimum core coverage CFR)

sectoral capital requirements (SCR)

temporary restrictions on high loan-to-value ratio (GIB) residential mortgage loans