Law Summary
Institutionalization of the Financial Stability Coordination Council (FSCC)
- FSCC is established as a permanent inter-agency council.
- Members include the Bangko Sentral ng Pilipinas (BSP), Department of Finance (DOF), Securities and Exchange Commission (SEC), Insurance Commission (IC), and Philippine Deposit Insurance Corporation (PDIC).
Purpose and Objectives of FSCC
- Enhance overall financial system stability by addressing systemic risks.
- Employ macroprudential policy interventions to manage these risks.
- Develop a Macroprudential Policy Strategy Framework to guide policies.
- Framework to be publicly available and updated periodically.
Powers and Functions of the FSCC
- Issue directives or policy regulations consistent with member agencies' mandates to maintain financial stability.
- Align policies, regulations, supervisory frameworks, and programs related to financial stability.
- Coordinate with foreign regulators on financial stability matters and macroprudential policies.
- Collaborate with public/private organizations for data collection and research to support informed policy-making.
- Establish governance and operational guidelines as necessary.
Executive Committee (ExeComm) Structure and Function
- Governs FSCC affairs.
- Composed of:
- BSP Governor (Chairperson)
- Secretary of Finance
- Insurance Commissioner
- PDIC President
- SEC Chairman
- Senior officials (non-voting) from each member agency.
- Holds authority to:
- Establish internal procedural rules.
- Issue resolutions for function implementation.
- Create Technical Working Groups/Sub-Committees.
- National Treasurer may attend as a special non-voting member.
FSCC Secretariat
- Supports FSCC and ExeComm operations.
- The BSP's Office of Systemic Risk Management serves as Technical Secretariat unless otherwise declared.
Meetings
- ExeComm to meet periodically.
- Chairperson may call meetings as needed.
Funding
- Operational costs of the FSCC are charged to the BS P's budget.
Repeal clause
- Prior inconsistent rules, orders, or issuances are repealed or modified accordingly.
Separability Clause
- Invalidity of any provision does not affect the validity of the remaining provisions.
Effectivity Clause
- The Executive Order takes effect immediately upon signing.