The Financial Stability Coordination Council (FSCC) has released its 2024 Financial Stability Report (FSR), showcasing the resilience and stability of the Philippine financial system despite global challenges, including geopolitical tensions and policy shifts.
According to the Bangko Sentral ng Pilipinas (BSP) and FSCC chair Eli M. Remolona, Jr., the report highlights key factors that contributed to the country’s financial strength, including declining inflation, strong economic output, and ample international reserves. The Philippine banking sector was also noted for maintaining adequate capital and liquidity buffers, which enabled it to absorb potential losses while continuing to support economic activity.
The report also underscores a strong domestic investor participation in financial markets, with no signs of asset price misalignments. This indicates that the country’s financial markets are stable despite global volatility.
Governor Remolona praised the financial system’s adaptability, saying, “In a year full of change, the Philippine financial system demonstrated strength, backed by an improved understanding of market dynamics and lessons from the past.” He also stressed the importance of systemic risk management, highlighting that risks such as asset valuation, leverage, and debt servicing must be managed collectively across interconnected markets.
In a bid to further strengthen financial stability, the FSR outlined several strategic measures, including deepening the bond market, improving reporting frameworks, and developing macroprudential tools to address emerging risks.
The FSCC, which includes the BSP, Department of Finance, Insurance Commission, Philippine Deposit Insurance Corporation, and the Securities and Exchange Commission, publishes the FSR annually to assess the health of the nation’s financial system. The full 2024 report is now available on the FSCC member agencies’ websites.
