The Financial Stability Coordination Council of the Philippines (FSCC) has reaffirmed its role in overseeing the stability of the Philippine financial system as both international and domestic market conditions evolve.
At its recent quarterly session, the FSCC focused on evaluating the country’s financial resilience, with discussions centering on ongoing risk assessments and the advancement of policy reforms, including updates to the deposit insurance framework.
Council members analysed a range of factors that could influence the financial sector, such as global economic trends, geopolitical developments, and shifts in domestic liquidity.
These elements were identified as having potential effects on asset prices, the ability of borrowers to service debt, and overall market volatility.
Despite these challenges, the FSCC reported that the banking sector continues to maintain robust capital and liquidity positions.
The FSCC announced the addition of Atty. Francis E. Lim as the new chair of the Securities and Exchange Commission (SEC).
Lim’s background in capital markets and regulatory matters is expected to contribute to the council’s ongoing efforts to enhance systemic risk oversight.
The council highlighted the necessity of adapting policy tools and analytical methods to keep pace with the rapidly changing financial environment.
Efforts are underway to further develop risk monitoring capabilities that can address vulnerabilities across various sectors and timeframes.
As part of its forward-looking approach, the FSCC reviewed the results of its Survey of Salient Risks, which gathered institutional insights on potential threats to financial stability in the near term.
The survey identified market fluctuations, policy uncertainties, geopolitical risks, and technological changes as key areas of concern.
The council also examined current strategies for monitoring and mitigating these risks, emphasising the importance of coordinated action among regulatory agencies and the use of data-driven decision-making.
Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr., who chairs the FSCC, reiterated the council’s commitment to inter-agency cooperation and proactive risk management to support market confidence and the resilience of the financial system.
The FSCC is composed of the BSP, Department of Finance, Insurance Commission (IC), Philippine Deposit Insurance Corporation, and the SEC. Its mandate is to coordinate efforts to identify and manage systemic risks within the Philippine financial sector.
In related news, the Philippine insurance industry reported an increase in both market penetration and premium density during the first quarter of 2025, based on preliminary figures from the IC.
Insurance penetration, which measures total premiums as a share of gross domestic product (GDP), reached 1.89% by the end of March, up from 1.78% a year earlier.
Premium density, or the average premium per person, also rose by 13.4% to PHP1,094.94.
Insurance Commissioner Reynaldo Regalado attributed the higher penetration rate to premium growth that outpaced the 7.8% increase in nominal GDP. He also noted that the rise in density was driven by premium expansion exceeding the 0.87% growth in population.
