MANILA -- The Financial Stability Coordination Council (FSCC) recently held its quarterly meeting to assess and review potential risks to the continued stability of the Philippine financial market.
The latest systemic risk review highlighted the country’s strong economic performance on several fronts.
In a news release issued Wednesday, the Bangko Sentral ng Pilipinas (BSP) said this has been driven primarily by local sources of growth, specifically by increased consumption from individuals, which is fuelled by more disposable income and by government expenditures.
This positions the Philippines well in the ASEAN and global context, where the latest forecasts from the International Monetary Fund (IMF) shows continued growth over the next few years, said the central bank.
Various risks that could potentially dampen further growth momentum were discussed by the FSCC.
Global issues flagged by third-party institutions, as well as local challenges were reviewed as to their likelihood and impact.
The availability of additional market liquidity to support the government’s infrastructure development program and the uptrend in market prices (global interest rates and benchmark currencies) were primarily considered in light of the technical models that have been designed by the FSCC Technical team.
Since the notion of “financial stability” is forward-looking in perspective and pre-emptive in nature, the FSCC highlighted the necessity for continued vigilance in the surveillance of unfolding market developments and in systemic risk monitoring.
The council likewise looked towards strengthening its communication initiatives across various stakeholders.
The FSCC is composed of the BSP, Department of Finance, Insurance Commission, Philippine Deposit Insurance Corp., and Securities and Exchange Commission.
Sitting on the Council’s Executive Committee are the principals and senior officials of the five agencies, including the Bureau of the Treasury. The council is chaired by BSP Governor Nestor A. Espenilla Jr. (BSP/PR)
