FSCC strengthens financial stability efforts for 2026

The Financial Stability Coordination Council (FSCC) has identified comprehensive mapping of corporate linkages across the country as a top priority for 2026, aiming to strengthen its ability to detect contagion channels and emerging vulnerabilities in the financial system.

The initiative was announced during the council’s 43rd Executive Committee Meeting held at the Bangko Sentral ng Pilipinas (BSP) headquarters on 5 November 2025, where members also agreed to develop an interagency coordinated-response protocol for potential systemic disruptions.

“The FSCC’s top priority is to stay ahead of emerging risks and respond as one cohesive front,” said FSCC Chairman and BSP Governor Eli M. Remolona, Jr. “By improving system-wide monitoring and coordination, the FSCC aims to safeguard the stability of the Philippine financial system.”

In its latest assessment, the council reported that the banking sector remains resilient, supported by strong capital buffers, healthy liquidity, and sufficient loan-loss provisions. Stress tests indicated that capital adequacy ratios would stay above regulatory minimums even under severe shocks.

The FSCC noted that the interconnectedness between non-financial corporations and financial institutions has increased in recent years, with risks influenced by housing market trends and rising leverage among corporate and household borrowers.

To support capital market development, the council is also pushing for a standardized bond pricing convention and refining open market operations to improve market efficiency.

The FSCC is composed of the BSP, Department of Finance, Insurance Commission, Philippine Deposit Insurance Corporation, and Securities and Exchange Commission. It serves as the Philippines’ primary interagency body for monitoring and mitigating systemic financial risks.