The Financial Stability Coordination Council has been established
To enhance the country’s financial system’s stability, President Rodrigo Duterte issued Executive Order (EO) 144, which established the Financial Stability Coordination Council (FSCC).
The Bangko Sentral ng Pilipinas (BSP), the Department of Finance (DoF), the Securities and Exchange Commission (SEC), the Insurance Commission (IC), and the Philippine Deposit Insurance Corporation (PDIC) are the member-agencies of the FSCC, which was established as an inter-agency council under EO 144 signed Tuesday.
The directive said, “The FSCC should improve the financial system’s stability by reducing systemic risks via prompt macroprudential policy measures.”
The FSCC is also charged with developing a Macroprudential Policy Strategy Framework to guide its policy interventions. This framework should be made publicly accessible and updated as needed.
FSCC is required by EO 144 to issue directives or policy rules, as well as to coordinate different financial stability policies, laws, supervisory frameworks, programs, and initiatives.
The FSCC is also tasked with coordinating financial stability and macroprudential policies with international authorities.
It should also work with public and private groups to gather data and conduct research in order to provide more informed policy suggestions.
In addition, the inter-agency council must develop and approve its governance and operational rules, if needed.
“In line with the National Government’s goal of safeguarding Filipinos’ welfare via a well-functioning financial system, the government now reiterates its policy of improving financial system stability by reducing systemic risks through timely policy interventions,” according to EO 144.
The FSCC will be run by an executive committee (ExeComm), which will be headed by the BSP governor.
The DOF Secretary, the IC Commissioner, the PDIC President, and the SEC Chairman are all members of the ExeComm.
Non-voting members will be one senior official from each of the five member agencies, as officially selected by the head of the agency.
“As needed, the ExeComm shall publish rules for the conduct of its internal processes, issue Resolutions related to the execution of its duties, and establish Technical Working Groups and/or Sub-Committees,” according to the EO. “As a special non-voting member, the National Treasurer may be invited to ExeComm meetings.”
A Secretariat will support the FSCC and its ExeComm.
The FSCC ExeComm is obliged by EO 144 to convene on a regular basis, without prejudice to the chairperson’s authority to arrange meetings as needed.
The FSCC’s operational costs will be deducted from the BSP’s budget.
EO 144, which was made public on Wednesday, is immediately effective.