THE Bangko Sentral ng Pilipinas (BSP) is set to implement a new approach to promote a sound, safe, and resilient financial system.
In a recent speaking engagement, BSP Governor Benjamin E. Diokno said the BSP is implementing the “RING” approach for banks and other financial institutions in the country.
Diokno explained that RING stands for the four pillars in their approach to banking regulations.
In particular, Diokno said “R” stands for Risk management guidelines. The governor said these guidelines are continuously enhanced to be responsive to changing environment.
“I”, meanwhile, is for Integrity in the financial system and investor confidence.
“N,” on the other hand, stands for New technologies. Diokno said banks must adapt to new technologies to provide innovative financial products and services to their consumers.
Finally, “G” is for Governance standards that must be continuously strengthened to reinforce the conduct of supervised financial institutions.
“The implementation of corporate and risk governance reforms helped the Philippine banking system withstand the pandemic,” the governor said.
Diokno added that these “embed a culture of excellence and good governance among supervised financial institutions.”
In October 2021, the BSP introduced the Environmental and Social Risk Management (ESRM) Framework, marking the second phase of enabling regulations to mainstream and promote sustainability.
“The past 21 months showed the quality of oversight of the board of directors and the robustness of risk management systems of financial institutions, enabling them to quickly resume business operations and deliver financial services even amid the pandemic,” Diokno said.