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

The Bangko Sentral has announced relief measures for banks dealing with paper losses, but former deputy governor Diwa Guinigundo raises alarms about potential moral hazard. This means banks might take on more risks if they believe regulators will protect them from future market shocks. The move could shift risk rather than resolve it, potentially leading to more significant financial instability down the line. It's a delicate balance between supporting the banking sector and maintaining financial integrity.