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September 28, 2022

FSCC sees no major risk for Phl economy

Outgoing Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the Financial Stability Coordination Council (FSCC) does not expect any major risk for the Philippines.

The FSCC said the country is currently facing risks including the policy normalization by central banks led by the US Federal Reserve as well as slower global economic growth.

“Other than that, we don’t see any risk for the Philippine economy,” the incoming Finance Secretary.

Diokno said in his speech during the release of the Systemic Risk Crisis Management (SRCM) framework that the Philippines has survived the Asian Financial Crisis, the Global Financial Crisis and more recently the COVID-induced global recession over the past three decades.

“Although these have happened at nearly a decade’s interval between them, regulators as well as the public do not take comfort when the unexpected happens. This is the nature of crises. They are unexpected but creates significant disruptions as they unfold. Someone will always bear the costs of the least disruptions, and invariably it is the public,” Diokno added.

Diokno explained that now is the opportune time to look ahead and recognize lessons from the past while anticipating the possibilities of the future.

The framework aims to help manage systemic risks and strengthen the resilience of the financial system by defining arrangements among the FSCC agencies that we will rely on in good times so that we are best organized under stressed conditions.

It is a strategic document that highlights how are ongoing tasks contribute to crisis management and identifying initiatives which we believe are needed moving forward.

“As we develop the tactical plans that underpin this strategic document, the SRCM is thus a living document that evolves with the market and the needs of its stakeholders,” Diokno added.

Aside from the BSP, the FSCC is an inter-agency council is also comprised of the Department of Finance (DOF), the Insurance Commission (IC), the Philippine Deposit Insurance Corp. (PDIC), and the Securities and Exchange Commission (SEC).

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