The Financial Stability Coordination Council (FSCC) has named the full mapping of corporate linkages across the Philippines as a central initiative for 2026—an effort it says is critical for understanding how financial shocks could spread through the economy.
At its 43rd executive committee meeting in November, the FSCC said the mapping program will help pinpoint stress points and potential contagion pathways within the country’s financial ecosystem. Officials emphasized that knowing how companies are interconnected will allow regulators to spot vulnerabilities early and prevent small problems from escalating into broader economic disruptions.
To reinforce this work, the FSCC is developing a coordinated response protocol so government agencies can act quickly and in unison if signs of systemic risk emerge.
FSCC chairman and Bangko Sentral ng Pilipinas governor Eli M. Remolona, Jr. said the council’s top priority is to “stay ahead of emerging risks and respond as one cohesive front,” stressing that improved monitoring and coordination are essential to keeping the financial system stable.
The council reported that the banking sector remains resilient, supported by strong capital, healthy liquidity, and solid loan-loss buffers. Stress tests show banks would still maintain capital levels well above regulatory requirements even after major shocks.
However, the FSCC noted that the ties between non-financial corporations and the financial sector have grown deeper—making it more important to track how risks can move between them. Housing market conditions and rising leverage in both corporate and household sectors are shaping many of these risks.
As part of broader capital market reforms, the FSCC is also pushing for a standardized bond pricing convention and improvements to open market operations to boost market efficiency.
The FSCC brings together the BSP, Department of Finance, Insurance Commission, Philippine Deposit Insurance Corporation, and Securities and Exchange Commission to monitor and manage risks that could affect the stability of the Philippine economy.
