The Central Bank of the Philippines (Bangko Sentral ng Pilipinas, BSP) reported that the Financial Stability Coordination Council (FSCC) used its latest quarterly meeting to review the financial stability outlook and ongoing policy work to strengthen resilience, including proposed reforms to the deposit insurance system. The Council assessed that, despite shifting global and local conditions, Philippine banks remain well-capitalized with sufficient liquidity buffers. The FSCC examined vulnerabilities linked to changing global financial conditions, geopolitical tensions, and domestic liquidity shifts, noting potential impacts on asset valuations, debt servicing, market volatility, and trade. It also discussed improvements to its analytical toolkit for monitoring systemic risk channels across sectors and timeframes and reviewed a forward-looking Survey of Salient Risks to capture institutions’ views on near-term vulnerabilities, including market volatility, policy uncertainty, geopolitical risks, and technological disruptions. The update also noted the Council’s welcome of new Securities and Exchange Commission Chairman Francis E. Lim and reiterated the FSCC’s inter-agency coordination role across the BSP, Department of Finance, Insurance Commission, Philippine Deposit Insurance Corporation, and Securities and Exchange Commission.
Central Bank of the Philippines 2025-07-07
Central Bank of the Philippines-led Financial Stability Coordination Council reviews systemic risk outlook and deposit insurance reform proposals
The Central Bank of the Philippines reported that the Financial Stability Coordination Council reviewed the financial stability outlook and proposed reforms to the deposit insurance system. Despite global and local shifts, Philippine banks are well-capitalized with sufficient liquidity buffers. The Council also examined vulnerabilities related to geopolitical tensions and domestic liquidity shifts, and discussed enhancements to its analytical toolkit for systemic risk monitoring.