THE Bangko Sentral ng Pilipinas (BSP) announced that the Financial Sector Forum (FSF) performed a holistic risk assessment of a conglomerate and identified supervisory concerns in its second inter-agency cross-sectoral Supervisory College.
The BSP also said that the FSF developed a coordinated supervisory plan to be implemented under respective Charters of the BSP, the Securities and Exchange Commission (SEC), the Insurance Commission (IC) and the Philippine Deposit Insurance Corp. (PDIC).
BSP Governor Felipe M. Medalla said the exercise is part of a broader macro surveillance conducted regularly by the financial sector regulators.
“The Supervisory College plays a vital role in conducting a comprehensive analysis of scenarios that may affect the financial conglomerates taking into account their interconnectedness to the Philippine economy,” Medalla was quoted in a statement as saying.
The BSP and SEC are the lead and co-lead supervisors and, through the member agencies, collaborated to further strengthen supervision of financial conglomerates.
Similar to the pilot run, the BSP said the second Supervisory College was conducted in accordance with the Memorandum of Understanding (MOU) signed by representatives of FSF-member agencies on January 25, 2022.
The results of the second supervisory college were presented to the FSF Principals during its meeting held on March 9, 2023.
The FSF decided to continue this initiative and a third Supervisory College is scheduled to commence in the second half of 2023.
Two years ago, former BSP Governor and then-FSF Chairman Benjamin E. Diokno said FSF members signed a memorandum of understanding (MOU) for the establishment of an inter-agency, cross-sectoral Supervisory College that will enable coordination on the supervision of conglomerates.
Diokno earlier said pilot-testing shall begin after the FSF’s release of the MOU’s implementing rules and regulations within the first quarter of the year. A training program will also be developed.
According to the BSP, financial conglomerates make up more or less 60 percent of the financial system.
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