FSCC strengthens tools to address systemic financial threats

The Financial Stability Coordination Council (FSCC) has reiterated its commitment to safeguarding the country’s financial system amid growing uncertainty in global markets and evolving domestic conditions.

In a statement released Monday, the Bangko Sentral ng Pilipinas (BSP) said the FSCC convened its quarterly meeting on June 20 to assess financial vulnerabilities and refine policy responses to emerging risks. The Council is composed of top officials from the BSP, Department of Finance, Insurance Commission, Philippine Deposit Insurance Corporation, and Securities and Exchange Commission.

During the meeting, the FSCC reviewed potential threats stemming from international financial shifts, geopolitical tensions, and domestic liquidity dynamics. These developments, the Council noted, could affect asset valuations, debt servicing capacity, and investor sentiment.

Despite the risks, the Council reported that Philippine banks remain in a strong position, with healthy capital levels and ample liquidity. “The FSCC continues to ensure that systemic vulnerabilities are monitored across timeframes and sectors,” the statement read.

The Council also discussed updates to its risk assessment tools, including the ongoing Survey of Salient Risks, which gathers institutional insights on near-term threats to financial stability. Among the top concerns were policy uncertainty, market volatility, geopolitical friction, and technological disruptions.

The FSCC emphasized the importance of data-driven analysis and inter-agency coordination in preserving market confidence. It also noted progress on policy initiatives such as proposed reforms to the deposit insurance system, which aim to reinforce financial safety nets.

BSP Governor and FSCC Chairperson Eli Remolona Jr. said the Council remains committed to adaptive and proactive policymaking. “The FSCC remains vigilant and responsive to changing conditions to protect the integrity of the Philippine financial system,” he said.

The Council also welcomed Securities and Exchange Commission Chairperson Francis Lim, who joined the FSCC for the first time and is expected to bring expertise in capital markets and regulatory frameworks.