The Central Bank of Philippines (BSP) announced publication of the Systemic Risk Crisis Management (SRCM) framework. The framework was released by the Financial Stability Coordination Council (FSCC), which is an inter-agency council composed of the BSP, the Department of Finance, the Insurance Commission, the Philippine Deposit Insurance Corporation, and the Securities and Exchange Commission.
The Systemic Risk Crisis Management framework identifies key actions required to assess, categorize, manage, and communicate systemic risks. The framework covers continuous surveillance of risk-related trends, review of infrastructure, conduct of systemic stress tests, and arrangements for communication—both under normal and stressed conditions—with focus on climate-related and cyber security risks. The framework reflects the protocols and procedures agreed by the FSCC member agencies for handling the occurrence of systemic risk. The objective of this crisis management framework is instilling a process for the oversight of the entire financial system, cognizant of the interlinkages between stakeholders, and having in place an organized mechanism for handling systemic crises. The framework does not cover recovery and/or resolution arrangements of individual financial institutions. The rehabilitation and resolution of individual financial institutions—except where they are themselves important to the welfare of the system—remains the purview of their respective regulatory authority.
Keywords: Asia Pacific, Philippines, Banking, Systemic Risk, Stress Testing, Climate Change Risk, Cyber Risk, FSCC, Crisis Management Framework, Basel, BSP
Previous ArticleFCA Issues Updates on Permissions Regime, Examines Banking Models
Next ArticleACPR Publishes Draft CREDITIMMO Taxonomy for Banks
The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.