The Financial Stability Coordination Council (FSCC) reaffirmed its unwavering commitment to preserving the stability and resilience of the country’s financial system, navigating a dynamic environment shaped by shifting global and local conditions. The Council also formally welcomed Atty. Francis E. Lim, the newly appointed Chairman of the Securities and Exchange Commission (SEC), whose extensive expertise in capital markets and regulation will be a valuable asset to the Council.
During its recent quarterly meeting, the FSCC meticulously reviewed ongoing initiatives aimed at fortifying financial resilience. These efforts include continuous risk monitoring and the advancement of key policy initiatives, notably proposed reforms to the deposit insurance system, designed to enhance protection for depositors and strengthen the financial safety net.
The Council conducted a comprehensive assessment of potential vulnerabilities stemming from evolving global financial conditions, persistent geopolitical tensions, and domestic liquidity shifts. These factors have the potential to influence asset valuations, debt servicing capacities, market volatility, and trade dynamics. Despite these external pressures, the FSCC noted with confidence that Philippine banks continue to demonstrate robust health, evidenced by their strong capitalization and ample liquidity buffers.
In its pursuit of proactive oversight, the FSCC continues to refine its analytical tools, enhancing its ability to identify and monitor channels of systemic risks across various sectors and timeframes. The Council underscored the critical importance of timely and adaptive policy responses in today’s rapidly changing financial landscape.
To further bolster its forward-looking surveillance capabilities, the Council discussed the “Survey of Salient Risks.” This initiative is designed to gather institutional perspectives on key vulnerabilities that could impact the Philippine financial system in the near term. Risks identified through these discussions include market volatility, policy uncertainty, geopolitical risks, and technological disruptions. The FSCC also reviewed existing and proposed mitigating measures to effectively monitor and address these identified 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,” stated FSCC Chair and Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr.
The Financial Stability Coordination Council is comprised of the Bangko Sentral ng Pilipinas (BSP), the Department of Finance (DOF), the Insurance Commission (IC), the Philippine Deposit Insurance Corporation (PDIC), and the Securities and Exchange Commission (SEC). The Council plays a pivotal role in coordinating efforts to monitor and manage systemic risks within the Philippine financial system.
