Philippine regulators propose enhancing NBFI monitoring framework

The council noted increasing interconnectedness of NBFIs with the financing system.

The Philippines’ Financial Stability Coordination Council (FSCC) is developing an enhanced monitoring framework for non-bank financial institutions (NBFIs), according to an announcement by the Bangko Sentral ng Pilipinas (BSP).

The proposed new framework aims to promote a more coordinated regulatory approach in response to NBFIs’ increasing interconnectedness with the financial system, the central bank said.

NBFIs in the Philippines include investment houses, financing companies, money service businesses, pawnshops, insurance companies, and pre-need companies, amongst others.

The FSCC is an interagency mechanism that monitors systemic risk. It is composed of the BSP, Department of Finance, Insurance Commission, Philippine Deposit Insurance Corporation (PDIC), and Securities and Exchange Commission (SEC).

The FSCC also announced the launch of its curated database, allowing member-regulators to share information, data, and metrics related to systematic risks, the BSP said.