Philippines tailors stress tests to real estate exposures
New macro-prudential measure ‘does not reflect any imminent vulnerability’
The Central Bank of the Philippines announced a new macro-prudential measure this week aimed at ensuring the banking industry maintains a "healthy exposure" to real estate development.
The monetary board has approved two new guidelines to help assess whether banks hold sufficient capital to "absorb the credit risk to real estate". Banks now face a new round of stress tests to determine whether they meet these guidelines.
The guidelines are designed to ensure banks maintain a capital adequacy
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