By Tracy Cabrera
MANILA — Current geopolitical events and post-pandemic changes have adversely impacted the international financial system but finance secretary Benjamin Diokno is optimistic that the Philippine economy will be able to weather the implications as he stressed the need for heightened attention to the said concerns.
“Amidst the ever-changing and challenging economic landscape, I am confident that the [Bangko Sentral ng Pilipinas (BSP)] will continuously sharpen its tool kit, search for opportunities, and implement game-changing reforms and regulations to maintain the stability of our financial system,” the former Bangko Sentral ng Pilipinas (BSP) governor enthused.
Secretary Diokno noted the BSP’s competence to respond to economic events and given the fact that he was its administrator for the past three years, he said he is very much aware that the men and women of the country’s central bank have the experience and capability to respond “where it matters and when it matters.”
He had earlier been reminded by renowned corporate economist Thorsten Beck of the expected rise in financial and technological (fintech) companies and the greening of the financial system as well.
Beck, who is a professor of Financial Stability at the Robert Schuman Centre for Advanced Studies, European University Institute, identified to the finance chief the geopolitical risks that may impact economies.
These risks include, among others, the ongoing Russia-Ukraine conflict, withdrawal of European banks from Russia, demand-driven global energy crisis, tightening of the US monetary policy, cross-border banking, and China’s role as a creditor for fragile emerging markets and developing economies (EMDEs).
In response, Diokno agreed that the issues the global economist mentioned have important effects not only on the central bank and the financial system but also on the entire economy.
“In my capacity as Secretary of Finance, I and the economic team will remain steadfast on the risks identified by Professor Beck. The learnings we had today are useful inputs as we improve our medium-term fiscal consolidation framework to build on the current reform momentum and lead the economy towards more inclusive growth,” he concluded. (ai/mtvn)