FSCC to aid fight vs systemic risks–BSP By Bianca Cuaresma
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@BcuaresmaBM
ANGKO Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said the institutionalization of the Financial Stability Coordination Council (FSCC), through the recent signing of the executive order, is a “much-needed” support for the agencies that fight systemic risks in the country. I n a st ate me nt on T hu rs day, Diokno welcomed President Duterte’s signing of the Executive Order (EO) 144, effectively institutionalizing the FSCC. The FSCC has been operating on a voluntary basis since 2011.
“While the FSCC has been working quietly over the past decade, the EO gives the Council a formal legal standing. This is a muchneeded support for the continuing efforts to collectively address systemic risks,” Diokno said. The FSCC consists of the BSP, the Department of Finance, the Securities and Exchange Commission, the Insurance Commission, and the Philippine Deposit Insurance Corporation. Diokno said the EO signing is also timely, with the global health crisis likely leaving scars on lives and livelihoods. Because of this disruption, the governor said the key tenet of financial stability is
being tested and systemic risk management has gained importance. “Underly ing systemic r isk s may cover issues that were not in the initial contemplation when the respective charters of FSCC members were formalized. The EO gives us both coverage and depth in managing systemic risks, which is at the heart of financial stability,” Diokno said. The powers the EO grants to the Council include issuing regulations, collaborating with third parties to collect data, streamlining initiatives on financial stability, as well as the authority to coordinate with financial stability authorities
in other jurisdictions. The EO also strengthens FSCC’s capacity to provide appropriate analysis that is the basis of any intervention. “Managing systemic risks remains a continuing initiative, to make sure that the financial system is strong enough so that the public benefits from finance,” Diokno said. He also pointed out that, “Stability is much more than the absence of instability. It is about resilience to unexpected future shocks, and should these shocks materialize, for the system to be best able to recover in the shortest possible time.”
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Friday, July 9, 2021 Vol. 16 No. 268
P25.00 nationwide | 2 sections 26 pages |
PHL’S MANUFACTURING n
OUTPUT UP 265% IN MAY POPULATION COUNT WON’T HINDER GOAL OF REPLACEMENT RATE
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The MV Palawan Pearl lists about a hundred meters from the Baseco Compound shoreline after colliding with Cyprusregistered dredging BKM 104 Thursday dawn. The Coast Guard is racing to contain a possible oil spill on Manila Bay. Story on Second Front Page, A14 PHOTO COURTESY OF PCG
By Cai U. Ordinario
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@caiordinario
HE country’s manufacturing output outpaced its record performance last month due to faster growth in the manufacture of coke and refined petroleum products, according to the Philippine Statistics Authority (PSA). See “PHL,” A2
PESO exchange rates n US 49.7860
DOF to WB: Recall ‘outdated report’ on PHL education
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HE Department of Finance (DOF) wants the World Bank to take down its “outdated” and “erroneous” report on the state of the Philippine education sector apart from issuing a public apology.
Finance Secretary Carlos G. Dominguez III told World Bank Group President David Malpass that publishing the multilateral lender’s report—showing the poor condition of the education sector
ESPITE a higherthan-expected population in 2020, the Commission on Population and Development (Popcom) believes the country can still achieve a replacement rate by 2025. Undersecretary for Population and Development Juan Antonio Perez III told the BusinessMirror on Thursday that Popcom initially projected a population of 108.7 million in 2020. However, on Wednesday, the Philippine Statistics Authority (PSA) reported that as of May 2020, there were 109.035 million Filipinos. This was 8.05 million more than the 100.98 million recorded in 2015. “Overall, I believe that with the decline in population growth rate continuing, we are on track to have a stable population by 2025 when we expect to achieve replacement fertility,” Perez told this newspaper. The PSA said the rate of the countr y’s population growth slowed to 1.63 percent in the 2015 to 2020 period compared to the 1.72 percent recorded in the 2010 to 2015 period. Howe ver, Pere z s a id , monitoring the 2021 birth rate will be crucial in achiev-
ing replacement rate by 2025. Bringing down the total fertility rate is necessary for reaping the demographic dividend. Ideally, Perez said, there should only be 1.5 million to 1.6 million births by the end of 2021. This is the best-case scenario for the Philippines. Perez said the worst case would be for the country to register 1.8 million to 1.9 million births at the end of 2021. “We are closely monitoring the birth rate this year which will be crucial,” Perez told the BusinessMirror. Perez said the projection of the Popcom for 2020 was only “a couple of hundred thousand” less than the actual number. He said the higher population figure for 2020 relative to their expectation may have been due to the later-than-usual conduct of the census due to the pandemic. It may be noted that the PSA had to wait until mobility restrictions were eased before allowing enumerators to continue their data collection for the decade census or the Census of Population for 2020. See “population,” A2
See “DOF,” A2
n japan 0.4500 n UK 68.7196 n HK 6.4093 n CHINA 7.6935 n singapore 36.9360 n australia 37.2499 n EU 58.7226 n SAUDI arabia 13.2745
Source: BSP (July 8, 2021)