Photo credit: BSP

The Financial Stability Coordination Council (FSCC) is taking proactive steps to safeguard the Philippine financial system by making the mapping of corporate linkages a top priority for 2026.

During its 43rd Executive Committee Meeting at the Bangko Sentral ng Pilipinas (BSP) head office in Manila on November 5, 2025, the FSCC highlighted the importance of this initiative in spotting potential weak points and contagion pathways in the financial ecosystem.

To back this effort, the FSCC is also developing an interagency coordinated response protocol to help regulators act quickly if a financial disruption arises. This team involves the BSP, Department of Finance, Insurance Commission, Philippine Deposit Insurance Corporation, and Securities and Exchange Commission.

While the mapping is still in its planning stage, FSCC officials stress that understanding how corporations and banks are interconnected is crucial to preventing shocks from spreading across the economy. The council also noted that banks remain resilient, with strong capital and liquidity buffers, but regulators want to stay ahead of emerging risks.

As the FSCC moves forward, it is also exploring reforms to improve capital markets, including a standardized bond-pricing system and more efficient liquidity management.

With this initiative, the FSCC aims to ensure that the financial system is not only stable today but also prepared for any potential challenges in the years ahead.