FSCC develops monitoring framework for non-bank financial firms

The Financial Stability Coordination Council (FSCC) is developing an enhanced monitoring framework for non-bank financial institutions (NBFIs) to help safeguard the stability of the Philippine financial system.

The new framework aims to promote a more coordinated regulatory approach in response to NBFIs’ increasing interconnectedness with banks and other financial players.

Aligned with global best practices, it is designed to complement the Bangko Sentral ng Pilipinas’ (BSP) existing bank oversight while strengthening safeguards against systemic risks.

Examples of NBFIs include investment houses, financing companies, pawnshops, money service businesses, insurance companies, and pre-need firms.

“With the FSCC’s holistic and nuanced understanding of market conditions, we can better anticipate risks and respond more decisively,” FSCC Chair and BSP Governor Eli M. Remolona Jr. said.

The FSCC agreed to develop the monitoring framework during its 42nd meeting held at the BSP Head Office on Aug. 20, 2025.

The council is composed of the BSP, Department of Finance, Insurance Commission, Philippine Deposit Insurance Corporation, and Securities and Exchange Commission.

During the same meeting, the FSCC also launched its curated database, an online platform that enables member-regulators to share information, data, and metrics related to systemic risks.

The curated database is expected to strengthen collective supervision and improve oversight of both NBFIs and the wider financial system.

The FSCC emphasized that the Philippine financial system remains in a position of strength and reiterated its commitment to preserving stability through proactive and responsive regulation.

For ordinary Filipinos, tighter monitoring of NBFIs matters because many rely on these institutions for loans, remittances, insurance, and pawnshop transactions, which directly affect household finances.

By reducing risks in these sectors, the FSCC helps ensure that people’s savings, remittances, and access to credit remain safe and stable even during periods of economic uncertainty.