While the Financial Stability Coordination Council (FSCC) affirmed that the Philippine financial system remains resilient, financial institutions flagged geopolitical tensions, cyberattacks and global supply chain disruptions as key risks that warrant close monitoring in the next few years.
In a statement on Tuesday, the Bangko Sentral ng Pilipinas (BSP) said based on the latest Survey of Salient Risks conducted by the FSCC, respondents identified ‘geopolitical tensions, cyberattacks, and disruptions in global supply chains’ as key risks that warrant close monitoring.
The FSCC is composed of the BSP, Department of Finance (DOF), Insurance Commission, Philippine Deposit Insurance Corporation, and Securities and Exchange Commission (SEC). The Council coordinates efforts to monitor and manage systemic risks in the Philippine financial system.
The FSCC conducts the Survey of Salient Risks annually. The survey captures views on risks that could affect the financial system over the next 12 to 24 months and the next three to six years.According to BSP, respondents are from universal/commercial banks, rural/cooperative banks, thrift banks, other BSP-supervised financial institutions, non-bank financial institutions, non-financial corporations, government agencies, insurance companies and the academe.
FSCC Chairman and BSP Governor Eli M. Remolona Jr. said the FSCC ‘aims to proactively address risks through close monitoring, timely information sharing, and robust coordination among its members.’
The Council also stressed the importance of early identification of risks, as this allows financial authorities and market participants to improve safeguards, refine contingency arrangements and limit the impact of shocks on households, firms, and financial institutions.
Financial system can absorb shocks
These risks were flagged by financial institutions even as the FSCC affirmed the Philippine financial system remains resilient despite a ‘challenging’ global environment during its 46th Executive Committee meeting in Manila on September 2,2026.
Remolona said: ‘Global risks remain elevated, with geopolitical tensions in the Middle East and volatile financial markets. Nonetheless, our financial system remains well-positioned to absorb shocks.’
The Council noted that the financial system continues to be supported by ‘sound capital and liquidity positions, and prudent risk management.’
‘These strengths enable financial institutions to continue lending to households and businesses,’ it explained further.
According to the central bank, FSCC also noted that private-sector credit continues to grow at a ‘steady pace,’ which reflects sustained household consumption and business financing needs.
‘Consumer lending continues to support domestic demand, while corporate borrowing reflects firms’ investment and working-capital requirements. Real estate remains the largest component of banks’ loan exposures. Overall asset quality, however, remains stable,’ the BSP said.
At the same time, the central bank said the FSCC is taking steps to ‘further boost’ its ability to identify emerging vulnerabilities early and increase the financial system’s capacity to manage potential shocks.
‘These measures include enhanced monitoring of non-bank financial intermediaries to support their sound and sustainable development,’ the BSP noted.
The Council is also improving data collection and information sharing among FSCC members.
In addition, the FSCC is strengthening its assessment of liquidity, leverage, concentration, interconnectedness, and linkages among banks, non-bank financial intermediaries, corporates, and financial markets, the central bank said.