The Bangko Sentral ng Pilipinas (BSP) has adopted the new assessment framework for banks, which is seen to help enhance the stability of the banking system under the new economy. In a virtual briefing on Thursday, BSP Governor Benjamin Diokno said the central bank adopted the Supervisory Assessment Framework (SAFr) on January 1. “SAFr is [the] BSP’s risk-based supervisory framework [that] aims to facilitate more robust, dynamic, and forward-looking assessments of BSP-supervised financial Institutions (BSFIs),” he explained. According to the Bangko Sentral, the framework aims to improve the assessment framework by further emphasizing business model analysis to identify drivers of risks; aligning supervisory strategies with the unique impact and risks of a BSFI; and applying prompt and calibrated enforcement actions. It also adheres to the principle of proportionality in supervision. SAFr replaces rating systems earlier used by the BSP. The central bank’s policymaking Monetary Board approved the framework last February 27 and the industry was informed about the adoption through a memorandum in March 2020.