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July 13, 2024

BSP gets ahead of the curve with enhanced systemic risk review

The Bangko Sentral ng Pilipinas (BSP) has launched its regular Systemic Risk Review (SRR) to strengthen oversight of risks within the country’s financial system.

The SRR includes new studies, advanced methods, and refined analytics aimed at better understanding systemic risks, identifying how problems spread, and assessing risks linked to large financial groups.

In 2023, the BSP conducted a second round of the Macroprudential Stress Test, using updated data and improved methods to spot risks that could hurt credit, like high borrowing, not enough ready money, how problems could spread, and too much of a bank’s business being in one place.

In addition to these initiatives, the BSP has introduced market perception indicators, such as yield curve and stock index analyses, to develop risk-on and risk-off indicators for gauging market sentiment.

The BSP also maintains the Financial Stability Chart Pack, a comprehensive compilation of macro-financial indicators that integrates and updates various risk and resilience measures regularly.