Financial Sector Forum concludes third supervisory college

The Financial Sector Forum (FSF) successfully wrapped up its third Supervisory College, an initiative aimed at improving the oversight and regulatory practices of financial conglomerates.

The event underscored the FSF’s commitment to fostering inter-agency collaboration and enhancing financial stability through cross-sectoral cooperation.

“The Supervisory College continues to serve as a platform for FSF members to identify and mitigate risks and vulnerabilities inherent in financial conglomerates. The establishment of a harmonized supervisory plan facilitates the proactive resolution of supervisory concerns in the financial sector,” remarked FSF Chairman and Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona.

This third iteration of the Supervisory College marked a significant milestone in advancing a harmonized assessment framework, building on the progress since the first assessment in 2022.

The framework promotes the adoption of standardized policies, parameters, and structured data analysis for consistent risk assessment.

Key outcomes from the discussions include the approval of the Supervisory Plan, which focuses on entities with a greater impact and higher risk to the financial system.

“The plan leverages the joint efforts of FSF member-agencies,” said Remolona.

“Meanwhile, the FSF commits to continue with capacity-building activities for financial conglomerate supervisors, in the form of workshops and alignment meetings.”

The Supervisory Colleges are governed by a Memorandum of Understanding signed by FSF member agencies on January 25, 2022.

The findings and outcomes of the third Supervisory College were presented to FSF Principals during their meeting on May 24, 2024.

In a unanimous decision, the FSF resolved to convene the fourth Supervisory College in the latter half of 2024, continuing its efforts to enhance supervisory practices and promote financial stability.