FSCC maps corporate links, plans 2026 reforms

The Financial Stability Coordination Council (FSCC) has identified the comprehensive mapping of corporate linkages in the Philippines as a key priority for 2026.

The council announced the initiative during its 43rd Executive Committee Meeting held on Nov. 5, 2025, at the Bangko Sentral ng Pilipinas (BSP) head office in Manila.

The FSCC said the mapping effort is essential to identifying potential contagion channels and financial stress points that could pose systemic risks to the Philippine economy.

To support this work, the FSCC is developing an interagency coordinated response protocol to strengthen preparedness for potential systemic disruptions.

“The FSCC’s top priority is to stay ahead of emerging risks and respond as one cohesive front,” FSCC Chairman and BSP Governor Eli M. Remolona, Jr. said.

Remolona said enhanced monitoring and stronger coordination are necessary to safeguard the stability of the Philippine financial system.

The FSCC’s latest assessment showed continued strength in the banking sector, backed by solid capital buffers, strong liquidity positions, and adequate loan loss provisioning.

Stress testing results indicated that post-shock capital adequacy ratios remain well above regulatory minimums, reinforcing overall system resilience.

However, the council noted deepening linkages between non-financial corporations and the financial system, with vulnerabilities increasingly influenced by housing market conditions and elevated leverage in both corporate and household sectors.

As part of its capital market development strategy, the FSCC is also pushing for the adoption of a standardized bond pricing convention.

The council is refining open market operations to improve market efficiency and strengthen liquidity management.

The FSCC is composed of five financial sector regulators—the BSP, Department of Finance, Insurance Commission, Philippine Deposit Insurance Corporation, and Securities and Exchange Commission.

Together, these institutions coordinate efforts to monitor and mitigate systemic risks to ensure stability and resilience across the financial system.