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
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