MANILA – President Rodrigo Duterte has issued an executive order (EO) 144 establishing the Financial Stability Coordination Council (FSCC) to improve the stability of the country’s financial system.
Under EO 144 signed Tuesday, the FSCC is institutionalized as an inter-agency council composed of the Bangko Sentral ng Pilipinas (BSP), the Department of Finance (DoF), the Securities and Exchange Commission (SEC), the Insurance Commission (IC), and the Philippine Deposit Insurance Corporation (PDIC) as its member-agencies.
“The FSCC shall enhance the stability of the financial system by mitigating systemic risks through timely macroprudential policy interventions,” the order read.
The FSCC is also tasked to formulate a Macroprudential Policy Strategy Framework, which will guide its policy interventions and should be made publicly available and updated periodically, as may be warranted.
EO 144 mandates FSCC to issue directives or policy regulations, as well as align various policies, regulations, supervisory frameworks, programs, and initiatives on financial stability.
The FSCSS is also directed to coordinate with foreign regulators on financial stability and macroprudential policy.
It should also collaborate with public and private organizations for data collection and research to facilitate informed policy recommendations.
The inter-agency council is also required to formulate and adopt its governance and operational guidelines, as may be necessary.
“Consistent with the objective of the National Government to safeguard the welfare of Filipinos through a well-functioning financial system, the government hereby reiterates its policy of enhancing the stability of the financial system by mitigating systemic risks through timely policy interventions,” EO 144 said.
The FSCC’s affairs will be governed by an executive committee (ExeComm) chaired by the BSP governor.
The ExeComm’s members include the DOF Secretary, the IC Commissioner, the PDIC President, and the SEC chairman.
One senior official from each of the five member-agencies, as formally designated by the head of the agency, will also serve as non-voting members.
“The ExeComm shall promulgate rules for the conduct of its internal procedures, issue Resolutions relating to the implementation of its functions, and create Technical Working Groups and/or Sub-Committees, as necessary,” the EO said. “The National Treasurer may be invited to the meetings of the ExeComm as a special non-voting member.”
The FSCC and its ExeComm will be assisted by a Secretariat.
Under EO 144, the FSCC ExeComm is required to meet periodically, without prejudice to the discretion of the chairperson to call meetings, as may be necessary.
The funding requirements for the operation of the FSCC will be charged against the BSP’s budget.
EO 144, which was made public on Wednesday, takes effect immediately. (PNA)