THE Philippine central bank is looking to bolster stability and growth of the country's financial system via initiatives in the pipeline.
"For the year 2024, we are optimistic on the continued growth and stability of the banking system," Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi Fonacier told reporters during the weekend.
Deputy Governor Chuchi Fonacier"The BSP upholds our commitment to the implementation of a policy reform agenda that aims to maintain institutional stability and financial sector resilience, also on the sustainable financial system ... and lastly, develop, bolster analytics and capabilities," she added.
Initiatives for the year and beyond include preparations for a money laundering and terrorism financing risk assessment, with a final report targeted for release in 2025.
The supervisory agenda for 2024 also includes the operationalization of an upgraded resolution framework that will be complemented by reinforced macro-prudential oversight, enhanced stress testing, and risk area reviews.
Onsite visits conducted under the risk review will focus on specific operational aspects of a bank, Fonacier said.
The BSP will also work on the adoption of Basel 3 capital standards on credit and operational risks that are already open for public comments.
"[F]or 2024 to 2029, the BSP will [also] collaborate with concerned stakeholders on the development of the financial services' cyber resilience plan," Fonacier continued.
To mitigate greenwashing risks and safeguard the reputation of the Philippine financial system, meanwhile, the central bank is looking to enhance the country's sustainability-related information architecture.
"This will also contribute to the promotion of transparency and comparability of sustainability-related information, empowering investors in making informed decisions," Fonacier said.
The BSP will concentrate on key areas such as taxonomy, to be imminently introduced by the Financial Sector Forum member agencies including the Securities and Exchange Commission, Insurance Commission, and Philippine Deposit Insurance Corp.
There will be a focus on sustainability disclosures and the gathering of data for enhanced surveillance of climate-related risks.
"The BSP will also leverage our existing collaborations with financial sector regulators including industry associations, development partners, and other stakeholders, in the advancement of the sustainability agenda," Fonacier said.
In the area of strengthened analytics and supervisory technology, she underscored a commitment to developing a digital supervision platform.
Fonacier also noted the upcoming implementation of large language models for the analysis of financial reports and the status of BSP-supervised financial institutions and enhancements to the central bank's data warehouse system.
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