Finance chief says action needed vs financial, economic threats of pandemic

Department of Finance Goldman Sachs

Finance Secretary Carlos Dominguez III has underscored the need for regular systemic risk assessments to enable the government to quickly spot the underlying vulnerabilities of, and anticipate potential threats to, the country’s financial system from the COVID-19 pandemic.

Dominguez said conducting these systemic risk assessments will protect both the economy and the Filipino people from “avoidable shocks” that could set back the country’s progress towards a strong post-pandemic recovery.

“Having a better understanding and view of brewing risks is necessary for calibrated actions and policy interventions. This is the way modern governments should operate. We should anticipate threats rather than merely react to problems after they have broken out,” Dominguez said at Wednesday’s virtual launching of the Financial Stability Coordination Council (FSCC)’s 2021 First Semester Report.

President Duterte recently institutionalized the FSCC through Executive Order (EO) No. 144 to further ensure the stability of the Philippines’ financial system.

EO 144 created the interagency FSCC, with the Bangko Sentral ng Pilipinas (BSP), Department of Finance (DOF), Securities and Exchange Commission (SEC), Insurance Commission (IC) and the Philippine Deposit Insurance Corp. (PDIC) as its member-agencies.

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