Regulators step up supervision over financial firms

THE Financial Sector Forum (FSF) started working on a second “supervisory college” this month that aims to design a plan for more effective supervision of financial conglomerates.

A supervisory college is a forum that seeks coordination among the country’s financial regulators to better watch over businesses that operate at least two types of financial institutions.

The FSF is composed of the Bangko Sentral ng Pilipinas (BSP), Insurance Commission, Securities and Exchange Commission (SEC), and Philippine Deposit Insurance Corp.

According to the BSP, the second supervisory college is expected to end by January next year.

It added that the members of the supervisory college will “discuss the conglomerate structure, identify emerging risks and issues that pose safety and soundness concerns.”

In a press release posted on the SEC website, the BSP said that the FSF concluded the pilot run of the supervisory college, which started in the second quarter, and with the results presented during the forum’s meeting on Aug. 22.

“The pilot run of the supervisory college enabled the financial sector supervisors to gain a deeper understanding and holistic assessment of the risks to safety and soundness regarding financial conglomerates,” a BSP representative said in a Viber message.

“This exercise reaffirms the commitment of member-agencies of the FSF to strengthen collaboration in promoting financial stability,” the representative added.

Back on Jan. 25, the FSF members signed a memorandum of understanding establishing an interagency, cross-sectoral supervisory college that will facilitate cooperation and coordination among member agencies. — Justine Irish D. Tabile