The Bangko Sentral ng Pilipinas (BSP) and the International Monetary Fund (IMF) co-hosted the inaugural Regional Dialogue on Financial Stability (FS) for ASEAN Central Banks on 21-22 January 2019 at the Philippine International Convention Center, with the theme, “Ensuring Financial Stability in the Region: Some Policy and Practical Issues.”
Structured as a “regional dialogue,” the event brings together Governors and other high-level officials from ASEAN member states. Also participating are experts from the IMF, the World Bank, the Bank for International Settlements, and the South East Asian Central Banks Research and Training Centre as well as bank CEOs and other government officials working in the area of financial stability.
In the keynote speech of BSP Governor Nestor A. Espenilla, Jr., delivered by Deputy Governor Chuchi G. Fonacier, the role of financial stability as key policy consideration was highlighted, “…financial stability is ultimately about a thriving and well-functioning financial system. By this we mean that the financial system efficiently serves the needs of all financial consumers – especially the traditionally excluded, from corporates to households and to individuals – while mitigating the build-up of systemic dislocations…Financial stability is therefore more than just the absence of instability or preventing the next crisis. There is a positive side to it, which is to ensure that the financial system continues to be a transformative tool for the public. This is the compelling case for why the authorities should be engaged in this policy sphere.”
The first day features a Governors’ panel where ASEAN integration benefits are carefully weighed against potential financial instability risks. Ensuing sessions focus on the nexus of monetary policy and banking supervision with FS, and the potential synergies and trade-offs between financial literacy and FS. The Financial Stability Network for Regional Peers (FS Network) will also be established as a valuable platform for future engagements among FS peers on systemic risk concerns.
The perspectives of the private banking sector on the impact of FS-related reforms, and the elements of an effective FS framework will be discussed the next day. International authorities and thought leaders will likewise deliberate on contemporaneous issues and challenges in pursuing FS.