On the brink of destruction? An assessment of the adaptive capacity of The Bangko Sentral ng Pilipinas and the Philippine Deposit Insurance Corporation

Abstract

Financial market structures are necessary conduits in connecting people for the mobilization of savings and investments. Furthermore, these institutions are necessary for the development of every country. The most common types of financial institutions are depositary institutions like banks where individuals from the richest to the poor are familiar and where they usually transact. It is among the places where people who have surplus income save their money (while earning through the interest that the banks pay them) and these intermediaries lend the money to investors and charge them with corresponding interest to account for the risk (Mishkin, 2004). The vitality of savings and investments in economic growth and development implicates the need for regulatory institutions that will safeguard the stability, integrity and continuous development of these institutions. This is especially true for the case of developing countries like the Philippines. [Introduction]