FSCC says Systemic Risk Crisis Management Framework underway

The Financial Stability Coordination Council (FSCC) is developing a framework which will organize how financial authorities assess and react to systemic disruptions to the local financial market.

According to FSCC chairman and Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno, the Systemic Risk Crisis Management Framework was developed as a pre-emptive move.

"We are pursuing this not because we see any imminent vulnerability that rises to the threshold of being systemic, rather the framework is a pre-emptive initiative," he said in a virtual briefing Tuesday.

"(We are) fully cognizant that its best use is when it is not in use, but fully prepared nonetheless when the times call for it," he added.

The FSCC, first convened in October 2011, is the venue for financial authorities to assess, discuss, and act on risks that can disrupt the financial market and the rest of the economy.

Among its members are the BSP, the Department of Finance (DOF), the Insurance Commission (IC), the Philippine Deposit Insurance Corp. (PDIC), and the Securities and Exchange Commission (SEC).

"This (framework) organizes the efforts of the financial authorities to assess and act should a systemic disruption to financial markets occur," said Diokno.

Aside from this, Diokno said the FSCC is set to release the Macroprudential Policy Strategy Framework which will delve deeper into the intervention of authorities for managing systemic risks.—AOL, GMA News