The Financial Stability Coordination Council (FSCC) announced the issuance of the country’s Financial Stability Report (FSR).
This is a milestone because this issuance is the first collaborative publication of the FSCC as well as the first FSR of the Philippines that will be made publicly available.
Bangko Sentral ng Pilipinas (BSP) Governor and FSCC Chairman Nestor A. Espenilla, Jr., said that “a well-functioning financial system is the centerpiece of the financial stability agenda and it is essential that stakeholders make well-informed choices within an environment of financial risks.”
The Governor added that “the FSR plays an important role because it is the main tool for communicating the balance of cross-cutting risks. Making this FSR publicly available is then all the more critical. ”
The FSR takes a thematic assessment of the various risks that could pose a challenge to the continued growth of the Philippine economy as well as the resilience of the Philippine financial system. This FSR focuses on the impact of globally rising interest rates and weaker currencies against the benchmark US dollar as this relates to the repayment, refinancing and repricing of debt.
The publication also discusses potential risks that could derail the benefits that come with both ASEAN financial market integration as well as the increased use of financial technology.
Various interventions aimed at enhancing systemic risk management are covered in the FSR, including addressing data gaps, enhancing communication with various stakeholders as well as other proactive initiatives.
The FSCC is a voluntary interagency body composed of the BSP, the Department of Finance, the Insurance Commission, the Philippine Deposit Insurance Corporation and the Securities and Exchange Commission.
Aside from the Philippines, jurisdictions that publicly issue their FSR include the United States, United Kingdom, the Eurozone, and closer to home, Australia, New Zealand, Japan, Korea as well as ASEAN jurisdictions like Indonesia, Malaysia, Singapore and Thailand.
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