The Financial Stability Coordination Council (FSCC), an interagency body that monitors systemic risks in the financial system, has begun work on a new monitoring framework for non-bank financial institutions (NBFIs) and launched a curated database to support closer oversight of the sector.
The curated database is an online platform that allows member-regulators to share information, data, and metrics on systemic risks. The FSCC said the tool is meant to strengthen collective supervision and help maintain the stability of the country’s financial system.
“With the FSCC’s holistic and nuanced understanding of market conditions, we can better anticipate risks and respond more decisively,” FSCC Chair and Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said.
The development of the monitoring framework was discussed during the FSCC’s 42nd meeting at the BSP Head Office on Aug. 20.
The framework seeks to improve coordination among regulators in light of NBFIs’ growing links with the broader financial system. It is designed to complement the BSP’s supervision of banks and strengthen safeguards against systemic risks, in line with international practice.
NBFIs include investment houses, financing companies, money service businesses, pawnshops, insurance companies, and pre-need companies.
The FSCC is composed of the BSP, Department of Finance, Insurance Commission, Philippine Deposit Insurance Corp., and Securities and Exchange Commission.