To ensure financial stability, President Duterte has finally institutionalized the council overseeing local financial policies.
Duterte issued on Tuesday Executive Order 144 institutionalizing the Financial Stability Coordination Council (FSCC).
“In recognition of the importance of financial stability to the overall health of the country’s financial system, there is a need to formalize the creation of an interagency body on financial stability in order to institutionalize its powers and functions and strengthen the ability of the government to collectively address systematic risks, which may arise from different segments of the financial market,” Duterte said.
The FSCC executive committee will be chaired by the Bangko Sentral ng Pilipinas (BSP) Governor and its members will include the Finance Secretary, Insurance Commissioner, Philippine Deposit Insurance Corp. (PDIC), Securities and Exchange Commission (SEC) chairman and one senior official from each of the five member-agencies, who will serve as non-voting members.
“The FSCC shall formulate a Macroprudential Policy Strategy Framework, which shall guide its policy interventions,” Duterte said.
The FSCC is based on the provisions of Republic Act 7653 otherwise known as the New Central Bank Act, which required the five government agencies to coordinate for financial-related policies.
The National Treasurer may also be invited by the FSCC in its meeting as a special non-voting member.
The funding for the FSCC will be taken from the budget of the BSP.
EO 144 took effect on July 6, 2021 after it was signed by Duterte.