The Financial Stability Coordination Council (FSCC) held its second quarter meeting and assessed the impact on the Philippines of a possible global growth slowdown.

FSCC Chairman and Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said that while the financial market remains on solid footing, he emphasized that the FSCC is deliberately forward-looking in its desire to guard the financial system against brewing systemic risks that can have negative consequences on the real economy and on the public.

The FSCC's mandate is to introduce timely and appropriate macroprudential policies which are meant to look after the safety and soundness of the financial system and its payments mechanism. Keeping the financial system healthy allows consumers to maximize the benefits of finance while avoiding any costs from possible disruptions, said the Governor.

In its assessment of the local financial market for the second quarter of 2019, the FSCC specifically focused on credit, liquidity and investment risks as well as the availability of long-term funds in support of the government's Build, Build, Build economic growth agenda.

We worked against the backdrop of an anticipated global growth moderation. We agreed on a number of possible interventions, from shorter term initiatives to our longer term goals. This leaves us with a roadmap geared towards sustaining market resiliency, Governor Diokno added.

With the policy direction clearly set by the Build, Build, Build program, a healthy financial system is all the more important to be able to provide diversified sources of funding as well as to be resilient relative to possible shocks. The objective ultimately is to align the needs of a growing economy with a sound and responsive financial system.

The FSCC is an inter-agency council with the BSP, the Department of Finance, the Insurance Commission, the Philippine Deposit Insurance Corporation, and the Securities and Exchange Commission as member institutions. It is the venue for financial market authorities to identify, monitor, manage, and mitigate the build up of systemic risk in the Philippine financial system.

Source: Bangko Sentral ng Pilipinas (BSP)