BSP Assesses Financial Stability, Sets Out Open Finance Roadmap
The Central Bank of Philippines (BSP) announced that the Financial Stability Coordination Council (FSCC) has published the second financial stability report for 2021. The report discusses lessons learned from the pandemic, identifies policy issues that must be addressed to sustain the recovery, and addresses the availability of data for assessing systemic risk. The report lists data gaps in the area of shadow banking and non-bank financing, capital flows, corporate borrowing, granular data and micro data, real estate markets, insurance companies, and households. In addition, BSP issued a statement that the open finance roadmap (for 2021-2024) will boost digital transformation and stakeholder cooperation toward enhanced financial inclusion in the Philippines.
The open finance roadmap outlines priority actions, including the adoption of the policy framework, capacity building for regulation, and cooperative oversight. As per the BSP, open finance is expected to promote consent-driven data portability, interoperability, and collaborative partnerships among entities while extending the principles of data-sharing, security, and privacy across the different financial products. The roadmap allows collaborative engagements with the private sector for the establishment of the Open Finance Oversight Committee (OFOC) and the development of industry standards under a test-and-learn approach. In relation to this, BSP has formally recognized members of the OFOC Transition Group to facilitate initial policies and standards formulation. The Open Finance initiative has been aligned with the BSP’s Digital Payments Transformation Roadmap 2020-2023, which aims to strengthen customer preference for digital payments and promote more innovative and responsive digital financial services. By using application program interfaces (APIs) to perform financial intermediation and make connections to share information, open finance is expected to facilitate digital retail payments, thus supporting the aim of digitizing half of total retail payments by 2023.
Additionally, during an inaugural meeting of the Management Association of the Philippines, the BSP Governor Benjamin E. Diokno highlighted that BSP is working toward a safe, sound, and resilient financial system by implementing the “RING” approach through the following initiatives:
- Risk management guidelines that will be continuously enhanced to be responsive to changing environment
- Integrity in the financial system and investor confidence
- New technologies that must be adapted to provide innovative financial products and services
- Governance standards that must be continuously strengthened to reinforce the conduct of supervised financial institutions
Related Links
- Press Release on Financial Stability Report
- Financial Stability Report (PDF)
- Press Release on Open Finance Roadmap
- Press Release on "RING" Approach
- Remarks of BSP Governor
Keywords: Asia Pacific, Philippines, Banking, Open Finance, Open Banking, Systemic Risk, Financial Stability Report, Data Gaps, Roadmap, API, Ring Approach, Open Data, BSP
Featured Experts

Blake Coules
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
Previous Article
BaFin and Bundesbank Publish Regulatory and Reporting UpdatesNext Article
EIOPA Sets Out Supervisory Convergence Plan for 2022Related Articles
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.