Regulators eye coordinated scrutiny of banks, insurers

Benjamin Diokno

Financial sector regulators led by the Bangko Sentral ng Pilipinas (BSP) have banded together for joint supervision of banks and insurers following recommendations put forward by the International Monetary Fund (IMF) in 2020.

Through the inter-agency body called Financial Sector Forum (FSF) chaired by BSP Governor Benjamin Diokno, the central bank and the Securities and Exchange Commission, Insurance Commission and Philippine Deposit Insurance Corp. agreed to establish a “Supervisory College.”

In 2020, the IMF recommended the implementation of a multilateral agreement among FSF member agencies on the establishment of a such a body, to agree on the approach of group level risk assessment for financial conglomerates.

“[The FSF] recognized the establishment of a Supervisory College as an important regulatory platform in achieving effective and efficient supervision of financial conglomerates,” Diokno said in a statement. INQ