The Bangko Sentral ng Pilipinas and the Philippine Space Agency have formalized a partnership to use satellite technology to strengthen climate risk monitoring and financial system resilience, following the signing of a memorandum of agreement on 27 January.

Under the agreement, the BSP will gain access to satellite imagery and geospatial datasets from PhilSA to help identify areas vulnerable to climate hazards and assess their impact on economic activity and communities.

The central bank said the data will support monetary policy formulation, financial supervision and sustainability initiatives by improving risk assessment tools.

BSP Assistant Governor Pia Bernadette R. Tayag underscored the need for data-driven risk management.

“The MOA reflects how we view resilience-building in the financial system: It requires good governance, strong coordination, and better data—supported by technology that helps institutions act earlier and smarter. This innovation improves preparedness across the economy and the financial sector.”

Beyond data sharing, the two agencies will jointly develop analytical tools, research programs and capacity-building initiatives to enhance the use of satellite data and geospatial analytics in policymaking and regulatory oversight.

The initiative forms part of the BSP’s broader push to integrate climate considerations into the financial sector. In recent years, the central bank has required supervised financial institutions to incorporate environmental and social risk governance into their operations and lending practices. It has also conducted climate risk stress tests for banks and promoted financing for sustainable and disaster-resilient infrastructure projects.

PhilSA, for its part, serves as the country’s lead agency for space science and technology development, managing satellite programs and providing geospatial data for disaster risk reduction, environmental monitoring, agriculture and national development planning.

PhilSA Director General Dr. Gay Jane P. Perez said the partnership highlights the complementary roles of both institutions.

“Space science and banking may appear to operate in different domains, yet both are ultimately concerned with stability,” Perez said, adding that the collaboration underscores a shared commitment to managing climate risks through science and technology.