FSCC affirms PH financial system strength, monitors concentration risk, and strengthens data sharing for risk monitoring

The Financial Stability Coordination Council (FSCC) reaffirmed the strength of the Philippine financial system. At the same time, it continues to monitor concentration risks.

During the council’s quarterly meeting on 13 March 2026, Bangko Sentral ng Pilipinas (BSP) Governor and FSCC Chairman Eli M. Remolona, Jr. said, “The banking system’s resilience is underpinned by strong capital and liquidity.”

The FSCC remains vigilant against potential systemic risks. While corporate balance sheets remain sound, the council noted that concentrated corporate exposures could amplify shocks as linkages between large conglomerates and economic sectors increase. 
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Members also discussed increases in corporate leverage, consumer credit, and housing loans. While these reflect economic activity, the council noted that “growth and risk often travel together."
 
To address risks from non-bank financial institutions adopting new business models, the council is expanding its surveillance network, improving data quality, and strengthening oversight.
 
Moreover, the council recognized the Philippine Deposit Insurance Corporation (PDIC)’s efforts to refine its early intervention frameworks to address bank distress swiftly and help preserve public trust and financial stability.
 
The FSCC is composed of the BSP, Department of Finance, Securities and Exchange Commission, Insurance Commission, and PDIC.
 
The FSCC reaffirmed its commitment to working with market stakeholders to maintain a sound and agile financial system.