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Keisha Ta-Asan - The Philippine Star
November 24, 2025 | 12:00am
MANILA, Philippines — The Financial Stability Coordination Council (FSCC) has made the comprehensive mapping of corporate linkages in the Philippines its flagship initiative for 2026, underscoring the need to better understand contagion channels and stress points across the financial ecosystem.
FSCC outlined its focus areas during its 43rd executive committee meeting held Nov. 5 at the Bangko Sentral ng Pilipinas (BSP) head office in Manila.
The council is composed of the BSP, Department of Finance, Insurance Commission, Philippine Deposit Insurance Corp. and Securities and Exchange Commission. It serves as the primary inter-agency body tasked to monitor and manage systemic risks in the Philippine financial system.
The mapping initiative aims to capture the deeper ties between non-financial corporations and the country’s financial system, a relationship FSCC said has strengthened in recent years amid shifts in the housing market and rising leverage among firms and households.
To complement the effort, FSCC is crafting an inter-agency coordinated response protocol that will guide how regulators address potential system-wide disruptions.
“The FSCC’s top priority is to stay ahead of emerging risks and respond as one cohesive front,” FSCC chairman and BSP Governor Eli Remolona Jr. said. “By improving system-wide monitoring and coordination, the FSCC aims to safeguard the stability of the Philippine financial system.”
In its latest assessment, the council emphasized the banking sector’s continued resilience, supported by strong capital buffers, healthy liquidity and ample loan loss provisions. Stress test results showed that capital adequacy ratios would remain comfortably above regulatory minimums even after significant shocks, it added.
FSCC is also pushing capital market development measures, including the creation of a standardized bond pricing convention and refinements to open market operations to enhance market efficiency.
