My Google Page Rank

BSP backs global unified credit ratings

PDFPrintE-mail

The Bangko Sentral ng Pilipinas (BSP) supports initiatives to institute a unified credit ratings for all countries around the globe.
In his speech in one of the seminars during the 45th ADB Governors Meeting being hosted by the Philippines from May 2-5, 2012, Tetangco said rebalancing of sovereign, corporate, and financial institutions’ credit ratings for Asia and the rest of the world will enable an “apples to apples” comparison.”

“The need for this is widely recognized,” he said citing the decision of the Association of Credit Rating Agencies in Asia (ACCRA) to publish in 2011 the “ACRAA Code of Conduct Fundamentals for Domestic Credit Rating Agencies.”

The central bank chief hinted a proposal to put up either a regional credit rating agencies (CRAs) or urge the CRAs “to look at our region with more openness, given the region’s excellent performance in the recent crisis.”

“What is clear for now, however, is that any work going forward should include the rebalancing of sovereign credit ratings for the region and globally,” he said.

“It is likewise imperative that future work will include the careful education of investors and governments alike...and greater transparency in the thought processes and methodologies that are to be used to arrive at such ratings,” he said.
Lately, CRAs downgraded credit ratings of major economies and upgraded those from emerging markets.
Tetangco said this was due to several factors like economic, financial and political factors…

He said these changes would affect the cost of capital of the countries as those upgraded found their financing cheaper while those downgraded expensive.

He also cited that countries that were recently upgraded would also be more attractive to investors and register higher foreign direct investments (FDIs).
“These trends, in turn, provide new impetus for greater corporate sector investment, enhanced job creation and ultimately, higher growth rates and broader-based prosperity,” he said.
Although credit rating upgrade was positive for the countries, this pose additional challenge for monetary officials, particularly on monetary policy and managing volatilities in capital flows, Tetangco said.

The central bank chief, on the other hand, pointed out that amid the possible complications of the ratings upgrade to monetary policy situation in a country, the rebalancing trend on credit rating globally comes along with the BSP’s effort to help deepen the country’s local currency capital markets.
“We in the BSP have learned from previous crises that the healthy development of our local currency capital markets is integral to our long-term growth prospects. We also believe this trend will allow for greater financial stability as our corporations and banks have efficient options to fund in pesos, lengthen borrowing tenors and diversify away from traditional heavy reliance on loans,” he added.

by: PNA/PIA9-ZBST




Related news items:
Newer news items:
Older news items:

Add comment


Security code
Refresh

WMSU, WMBA host National Training on Bio-Threat Reduction for LGUs

22 Nov 2017 Hits:47 Be the first to comment!

The Western Mindanao State University (WMSU), through the Western Mindanao Biosafety and Biosecurity Association (WMBA), and in partnership with the United States Department of Defense- Defense Threat Reduction Agency, successfully conducted the 8th WMBA National Training Conference held on November 16-18, 2017 at the Grand Astoria Hotel, this city. Over a hundred delegates from the academe, including elementary and secondary science and research teachers and students; health sector; defense sector; local government units from different parts of the region; laboratory industries, and the barangay council convened for the training. The conference focused on bio-threat reduction for the local government units (LGU) by integrating biosafety and biosecurity in the curricula via teaching module for the K-12 program, and developing contingency plans and incorporating [...] Read more

Prev Next Page:

Fire Chief prepares for fire

22 Nov 2017 Hits:38 Be the first to comment!

In preparation for the coming Yuletide Season, District Fire Marshal, Chief Insp. Clint Cha has called on all fire sub-stations to prepare and ready their various equipment and firetrucks. Cha said [...] Read more


DOH cites importance EO 28

22 Nov 2017 Hits:41 Be the first to comment!

The Department of Health, Regional Office 9 yesterday explained the objective and importance of Executive Order Number 28 of President Rodrigo Duterte on June 27, 2017, providing for the regulation [...] Read more


Wesmincom Chief says ASG strenght significantly dropped

22 Nov 2017 Hits:45 Be the first to comment!

Lt. Gen. Carlito Galvez, Western Mindanao Command Chief, yesterday said that the strength of the Abu Sayyaf Group in Sulu, Basilan and Tawi Tawi has significantly decreased. Galvez said this is [...] Read more


D' CUSTODIAN BALLER … NELLIE

22 Nov 2017 Hits:44 Be the first to comment!

Este si Marnelli Candido Berba, su palayao “Nellie”, 33 años de edad, 5’0” el altor, residente de Talon Talon, Ciudad de Zamboanga. Su mayores si Ernesto N. Berba y Maridol [...] Read more


380 aspiring fire officers take qualifying exams

21 Nov 2017 Hits:69 Be the first to comment!

More or less 380 applicants took the qualifying exam conducted by the Bureau of Fire Protection (BFP-IX) at the Zamboanga State College of Marine Sciences and Technology, yesterday. District Fire Marshal, [...] Read more


Cops, probers undergo training on drug cases

21 Nov 2017 Hits:62 Be the first to comment!

Members of the local police, investigators and other law enforcement agencies undergo a two-day enhancement training on handling drug cases in a bid to ensure successful implementation of the war [...] Read more


Submarine cable landing stations to speed-up internet connectivity – DOST

21 Nov 2017 Hits:108 Be the first to comment!

The slow internet connection in the country may soon be a thing of the past. This was according to the Department of Science and Technology (DOST) as it welcomed the [...] Read more


LADY PANTHER WRESTLER… ERICA

20 Nov 2017 Hits:74 Be the first to comment!

Este si Erica Bataclan Martinez, su palayao “Ecang”, 17 años , 5’3” el altor,    Su mayores si Oscar B. Martinez y Lariza A. Bataclan Martinez, su hermano y hermana [...] Read more


FOOTBALL CHIEF… TENG

19 Nov 2017 Hits:68 Be the first to comment!

Este si VICENTE EDUARDO S. TORRES, ta llama conele “Teng/Pardz/Boboy”, 62 años de edad , casao y su esposa si Esther Facultad Torres Y diila anak si Pompeyo F. Torres [...] Read more


AboitizPower sustains strong foothold in hydropower business

18 Nov 2017 Hits:130 Be the first to comment!

On the back of a strong demand for renewable energy (RE), AboitizPower continues to ramp up its portfolio of generation facilities across the Philippines. AboitizPower's subsidiary, SN AboitizPower, has completed the [...] Read more


ZAMBOANGA FOOTBALL - ROLL D BALL

18 Nov 2017 Hits:77 Be the first to comment!

Del Nov. 12, 2017 Domingo el Segundo semana de Season long Zamboanga Football league. El primer juego tan feature cun Resto del Mundo contra  Zamboanga United . Ta pricura man [...] Read more


Police shift war on drugs to anti-gun-for-hire drive

17 Nov 2017 Hits:90 Be the first to comment!

Police regional director and vice chair of the Regional Peace and Order Council (RPOC) for Western Mindanao Chief Supt. Billy Beltran announced recently that all police operatives previously assigned in [...] Read more


Military launch rescue ops for latest victims of ASG

17 Nov 2017 Hits:128 Be the first to comment!

Government troops are now conducting operations to rescue the six people, including two children, who have been abducted by about 15 suspected Abu Sayyaf bandits in Patikul, Sulu, according to [...] Read more


OCENR sets city-wide clean up on Nov 25

17 Nov 2017 Hits:71 Be the first to comment!

The City Government through the Office of the City Environment and Natural Resources (OCENR) will head a city-wide clean up drive on November 25. “We are going to have a city-wide [...] Read more


2017 MUAY THAI NATIONAL CHAMPIONSHIPS

17 Nov 2017 Hits:84 Be the first to comment!

Este si Leo Gandy Serrano, 15 años , Grade 10 na Claret High School Ciudad de Zamboanga . Ya principia juga Muay Thai cuando Grade 5 ele , producto le [...] Read more


Zambopen PWDs endorse Kahil as AVRC III head

16 Nov 2017 Hits:88 Be the first to comment!

The Persons with Disabilities (PWDs) in Zamboanga Peninsula as represented by their chosen leaders have strongly endorsed Zamboangueno Teddy Kahil as head of the Area Vocational Rehabilitation Center (AVRC) in [...] Read more


City SWM Board meet set today

16 Nov 2017 Hits:86 Be the first to comment!

The City Solid Waste Management Board will meet today, November 16, to prepare for the full implementation of the solid waste management ordinance in the City slated on November 27. According [...] Read more


BAP BASKETBALL TOURNAMENTS AND ACTIVITIES

16 Nov 2017 Hits:73 Be the first to comment!

Venue : Southern west campus Gym, San Jose Gusu. Category 40 and 50 years old Master division. Team Standing:    WIN         LOSS J VINCE            [...] Read more