At its quarterly meeting on 13 March 2026, the Financial Stability Coordination Council (FSCC), chaired by Central Bank of the Philippines Governor Eli M. Remolona, Jr., reaffirmed the strength of the Philippine financial system while highlighting the need to remain vigilant on concentration risks and other potential systemic vulnerabilities. The council pointed to strong capital and liquidity as key supports for banking-sector resilience, but warned that concentrated corporate exposures could amplify shocks as linkages between large conglomerates and economic sectors increase. Members also discussed rising corporate leverage, consumer credit, and housing loans, and agreed to expand the FSCC’s surveillance network, improve data quality, and strengthen oversight to address risks from non-bank financial institutions adopting new business models. The FSCC also noted the Philippine Deposit Insurance Corporation’s work to refine early intervention frameworks aimed at responding more swiftly to bank distress.
Central Bank of the Philippines 2026-03-19
Central Bank of the Philippines-chaired FSCC reaffirms financial system resilience while stepping up monitoring of concentration and leverage risks
The Financial Stability Coordination Council, led by Central Bank of the Philippines Governor Eli M. Remolona, Jr., reaffirmed the strength of the Philippine financial system but stressed vigilance on concentration risks and systemic vulnerabilities. The council noted strong capital and liquidity support banking resilience but expressed concerns over concentrated corporate exposures and rising leverage. It plans to expand surveillance, improve data quality, and enhance oversight, especially for non-bank financial institutions and early intervention frameworks.