The Financial Sector Forum (FSF), in its meeting last 29 September 2023 committed to intensify efforts in building a resilient, sustainable, and inclusive financial system through its ongoing work in the areas of (i) financial conglomerate supervision, (ii) sustainable finance, (iii) information exchange, (iv) financial technology, and (v) consumer protection and education.Thank you for reading this post, don't forget to subscribe!
BSP Governor and FSF Chairman Eli M. Remolona, Jr. said that “The work of the FSF is highly relevant and responsive to the emerging trends and changing environment.” Governor Remolona also highlighted that the FSF serves as an important platform for taking a holistic approach in introducing reforms in the financial sector.
This is the first FSF meeting attended by Governor Remolona since he assumed office in July 2023.
The FSF is now on the third financial conglomerate subject to inter-agency cross-sectoral review following the signing of the Memorandum of Understanding on the Establishment of Supervisory College for Financial Conglomerate Supervision on 25 January 2022. The cross-sectoral review is aimed at enhancing risk surveillance and monitoring to promote stability and soundness of the financial system.
The Forum also recently exposed for comments the local sustainable finance taxonomy, which covers climate change mitigation and adaptation objectives. The local taxonomy will serve as a tool to assess whether an economic activity is environmentally or socially sustainable. The document has given particular focus to Micro Small and Medium Enterprises in line with the thrust to promote inclusive green finance. The comment period will end on 6 October 2023.
In June 2023, the Personal Finance 101 for College Students was formally launched through the signing of a memorandum of agreement among the FSF-member agencies, Commission on Higher Education, National Economic and Development Authority, and BPI Foundation. This financial education program for college students will cover important concepts such as financial planning, savings and budgeting, debt management, investing, fraud and scam prevention, digital financial literacy, and financial consumer protection. The FSF is also ramping up efforts to engage industry associations to promote customer-centricity in the delivery of financial services as part of its consumer protection and education initiatives.
Meanwhile, inter-agency discussions continued in relation to upskilling supervisory personnel in response to the rapid technological advancements and expanding information sharing arrangement across the financial sector.
The FSF, a voluntary inter-agency body composed of the Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Insurance Commission (IC), and the Philippine Deposit Insurance Corporation (PDIC), provides an institutionalized framework for consultation, coordination and exchange of information relative to the supervision and regulation of the financial system, while preserving each agency’s mandate.