The Financial Sector Forum has formed a conglomerate supervisory college that will holistically see the risks in the financial sector and promote implementation of coordinated supervisory response across agencies. This initiative is in line with our mandate of promoting financial stability.” FSF chair and BSP Governor Felipe M. Medalla said.
The Financial Sector Forum (FSF) completed its pilot financial conglomerate supervisory college, which is part of the financial sector regulators' initiatives to strengthen the financial system's long-term safety and soundness.
The Supervisory College was established to improve the effectiveness and efficiency of financial conglomerate supervision. It is made up of representatives from the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission (SEC), the Insurance Commission (IC), and the Philippine Deposit Insurance Corporation (PDIC).
In an increasingly digitalized world, banks operating must be supervised as effectively as possible thus, Supervisory College plays an important role in helping to improve the supervision of banks.
Supervisory colleges are joint meetings of interested regulators with company officials. They go into detailed discussions about financial data, corporate governance, and enterprise risk management functions.
“The Supervisory College is an important undertaking that enables us to holistically see the risks in the financial sector and promotes implementation of coordinated supervisory response across agencies.This initiative is in line with our mandate of promoting financial stability.” Chairman of the FSF and BSP Governor Felipe M. Medalla said.
This calls for cooperation and coordination between and among the supervisory agencies as they have a common goal of providing a safe and effective financial system. The College aims to improve information sharing and provides a forum for discussing significant supervisory issues and concerns regarding financial conglomerates
The pilot run of the College involves the conduct of risk assessments on the financial conglomerate, identifying key supervisory concerns, and developing supervisory plans. The results of this trial run were reported at the FSF meeting on August 22, 2022,
On January 25, 2022, the FSF member agencies signed a memorandum of understanding (MOU) on the formation of Supervisory Colleges.
The second Supervisory College will begin in October 2022.
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