Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Tuesday the Financial Stability Coordination Council is watching the brewing systemic risks that can negatively impact on the real economy.
Diokno said in a statement the council remained on its toes despite the current solid footing of the financial market.
FSCC is an inter-agency council with the BSP, the Department of Finance, the Insurance Commission, Philippine Deposit Insurance Corp. and the Securities and Exchange Commission as member institutions. Diokno sits as the council chairman.
The council recently held its second-quarter meeting and assessed the impact on the Philippines of a possible global growth slowdown.
“The FSCC’s mandate is to introduce timely and appropriate macroprudential policies which are meant to look after the safety and soundness of the financial system and its payments mechanism,” Diokno said in a statement released Tuesday.
“Keeping the financial system healthy allows consumers to maximize the benefits of finance while avoiding any costs from possible disruptions,” Diokno said.
The FSCC, in its assessment of the local financial market for the second quarter of 2019, specifically focused on credit, liquidity and investment risks as well as the availability of long-term funds in
support of the government’s “Build, Build, Build” economic growth agenda.
“We worked against the backdrop of an anticipated global growth moderation. We agreed on a number of possible interventions, from shorter-term initiatives to our longer-term goals. This leaves us with a roadmap geared towards sustaining market resiliency,” Diokno said.
He said with the policy direction clearly set by the “Build, Build, Build” program, a healthy financial system became all the more important to provide diversified sources of funding and to be resilient relative to possible shocks.
He said the objective ultimately was to align the needs of a growing economy with a sound and responsive financial system.
The council serves as the venue for financial market authorities to identify, monitor, manage and mitigate the buildup of systemic risk in the Philippine financial system. Julito G. Rada