The Financial Stability Coordination Council (FSCC) reiterated its commitment to safeguarding the Philippines’ financial system amidst shifting global and local conditions.
The FSCC, in its latest quarterly meeting, reviewed efforts to strengthen financial resilience through continuous risk monitoring and policy initiatives, including proposed reforms to the deposit insurance system.
It assessed potential vulnerabilities linked to changing global financial conditions, geopolitical tensions and domestic liquidity shifts. These factors could impact asset valuations, debt servicing, market volatility and trade. Still, the FSCC noted that Philippine banks remain well-capitalized with sufficient liquidity buffers.
The council said it continues to refine its analytical tools to better oversee channels of systemic risks across sectors and timeframes, stressing the need for timely and adaptive policies in a fast-changing financial landscape.
To strengthen its forward-looking surveillance, the council discussed the survey of salient risks, which aims to capture institutional perspectives on key vulnerabilities that may affect the Philippine financial system in the near term.
Risks identified include market volatility, policy uncertainty, geopolitical risks and technological disruptions. The FSCC also reviewed mitigating measures to monitor and address these risks.
“The FSCC remains committed to inter-agency coordination, data-driven risk monitoring, and deploying needed measures to preserve market confidence and financial system stability,” said FSCC chair and Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr.
The FSCC also welcomed new Securities and Exchange Commission (SEC) chairman Francis E. Lim, who brings expertise in capital markets and regulation.
The FSCC includes the BSP, Department of Finance, Insurance Commission, Philippine Deposit Insurance Corp. and SEC. The council coordinates efforts to monitor and manage systemic risks in the Philippine financial system.
