The Financial Stability Coordination Council (FSCC) vowed to continue safeguarding the country’s financial system amid shifting global and local conditions.
FSCC members include the Bangko Sentral ng Pilipinas, Department of Finance, Insurance Commission, Philippine Deposit Insurance Corporation, and the Securities and Exchange Commission.
The Council coordinates efforts to monitor and manage systemic risks in the Philippine financial system.
In a statement Monday, the BSP said that during the latest quarterly meeting on June 20, the FSCC reviewed efforts to strengthen financial resilience through continuous risk monitoring and policy initiatives, including proposed reforms to the deposit insurance system.
The Council assessed potential vulnerabilities linked to changing global financial conditions, geopolitical tensions, and domestic liquidity shifts which could impact asset valuations, debt servicing, market volatility, and trade.
The FSCC, however, noted that Philippine banks remain well-capitalized with sufficient liquidity buffers.
The Council likewise 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 also 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 chairperson and BSP Governor Eli Remolona Jr.
During the meeting, the FSCC also welcomed new SEC chairperson Francis Lim, who brings expertise in capital markets and regulation.
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