Bangko Sentral gives banks relief on paper losses. But does this just push risk out of sight?

Bangko Sentral gives banks relief on paper losses. But does this just push risk out of sight?

MANILA, Philippines – Philippine banks are getting temporary relief from the Bangko Sentral ng Pilipinas (BSP), a move meant to keep market volatility from squeezing capital ratios. But does this actually invite more risks to creep into an already stressed banking system? Under BSP Memorandum No. M-2026-027, banks and quasi-banks may temporarily exclude certain unrealized losses, also known as paper losses, on peso government securities from the…