Broader role set for BSP-led council

A central bank-led government group in charge of insulating the local financial system from internal and external market shocks yesterday said its member-agencies have adopted a broader, more far-reaching goal on top of the group’s original mandate.

In a statement, the head of the Financial Stability Coordination Council (FSCC) said it was taking steps not only to enhance the strength of the financial system, but also to address the financial needs of the public and eventually serve as an anchor for economic recovery.

“The mandate of the FSCC is to make sure that the financial system is functioning properly,” said the group’s chair, Bangko Sentral ng Pilipinas (BSP) Gov. Benjamin Diokno.

He added that the council also understood that the ultimate goal was not just a strong financial system, but a financial system that supported a thriving economy.

“This is why mitigating systemic risk is all about public welfare,” he said.

The FSCC is composed of the BSP, the Department of Finance, the Insurance Commission, Philippine Deposit Insurance Corporation and the Securities and Exchange Commission. It is the venue for financial market authorities to identify, monitor, manage and mitigate the build up of systemic risks in the Philippine financial system.

Systemic risks are defined as disruptions to the financial system that can negatively affect the rest of the economy. INQ