Bank Non-Performing Loans (NPLs) Management and Resolution: The Case of the Philippines

The presentation highlights the approach taken by the Bangko Sentral ng Pilipinas (BSP) to respond to NPLs in the Philippines. The bank NPL management and resolution since the Asian financial crisis has been a combination of legislative measures, policies, and reforms. The legal and regulatory frameworks as well as trends and development of the NPL situation were tackled.

Chuchi Fonacier

Chuchi G. Fonacier is the Deputy Governor of the Financial Supervision Sector (FSS), which is mainly responsible for the regulation of banks and other BSP-Supervised Financial Institutions (BSFIs). Under her direct supervision are five subsectors which handle onsite examination and offsite surveillance (or integrated supervision) of BSFIs including specialized supervision of specific areas (i.e., anti-money laundering, trust, financial market operations and information technology), oversight of payment systems, policy studies/research, and supervisory data management.

Robert Merton

Robert C. Merton is the School of Management Distinguished Professor of Finance at the Massachusetts Institute of Technology, and the John and Natty McArthur University Professor Emeritus at Harvard University. His research focuses on finance theory, including lifecycle and retirement finance, optimal portfolio selection, capital asset pricing, pricing of derivative securities, credit risk, loan guarantees, financial innovation, the dynamics of institutional change, and improving the methods of measuring and managing macro-financial systemic risk.

ADB Distinguished Speakers Program: Robert Merton

Macro financial risk propagation and its implications on financial stability have emerged as major concerns of governments and financial institutions, particularly those with large financial asset pools. The global financial crisis in 2008–2009 was essentially centered on credit risk involving money markets, and the propagation of such risk across and among financial institutions and sovereigns is related to how connected they are.