‘Philippines pushes expanded ASEAN crisis financing’

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April 12, 2026 | 12:00am

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is pushing for stronger regional safety nets and deeper capital market integration across Southeast Asia as an oil price shock linked to geopolitical tensions threatens to strain economies, BSP Governor Eli Remolona Jr. said.

Speaking on the sidelines of the ASEAN finance ministers and central bank governors’ meetings, Remolona said the Philippines, as chair of the Association of Southeast Asian Nations this year, is advocating measures to expand crisis financing mechanisms.

“One of the things we’re working on is expanding what’s called the Chiang Mai Initiative, which is ASEAN’s way of providing emergency liquidity to each other in times of crisis,” Remolona said in an exclusive interview on ANC’s Money Talks.

The Chiang Mai Initiative, established after the Asian financial crisis of 1998, allows member economies to access short-term liquidity support through pooled reserves and bilateral swap lines.

Remolona said discussions are underway to make these credit and swap lines “bigger than before, so more serious than before,” underscoring efforts to bolster the region’s financial defenses.

Still, the BSP chief stressed that such mechanisms are precautionary. “We hope it doesn’t come to that,” he said, noting that drawdowns under the facility have historically been limited.

Remolona acknowledged that the ongoing oil price shock, driven by conflict in the Middle East, presents uneven challenges across ASEAN economies, particularly for oil-importing countries like the Philippines.

Beyond crisis financing, the BSP is also pushing for greater integration of ASEAN capital markets, including equity and corporate bond markets, to help narrow the gap between more developed and emerging economies in the region.

Remolona said initiatives include promoting cross-border investments, depository receipts and cross-listings of equities, although the latter would require greater regulatory harmonization.

He pointed out that the Philippines’ corporate bond market remains relatively shallow, with activity largely confined to top-rated issuances.

To address this, the BSP is proposing mutual recognition of credit ratings across ASEAN, which could allow investors to access a broader range of debt instruments and encourage domestic rating agencies to expand their assessments.

Remolona also highlighted the BSP’s push for “open finance” as a key pillar in democratizing access to capital markets. The initiative aims to enable retail investors, including lower-income households, to participate more easily in financial markets through digital platforms and financial institutions.

“I think what we can do as a central bank is to give the ordinary Filipino access to the same investments that the wealthier Filipinos have,” he added.

As ASEAN chair, the Philippines is seeking to bridge disparities between more advanced and developing financial markets in the region, which Remolona said remain significant.

He noted that the Philippine stock market’s capitalization is about 70 percent of gross domestic product, compared with over 100 percent in economies such as Singapore, Thailand and Malaysia.

“There really is this gap that needs to be resolved between the bigger, more developed markets in ASEAN and the smaller developing or emerging markets,” he said.

For Remolona, success would mean achieving meaningful financial integration that benefits households across the region.