The Financial Stability Coordination Council (FSCC) held its 4th quarter meeting and assessed the possible consequences of the emerging synchronized slowdown in growth.
Building on new results from the behavioral models designed by the FSCC Secretariat, evidence that the market has entered into a "risk-off" mode was considered. A "risk-off" condition describes a market situation when uncertainties have increased. As a result, some investors respond by tempering their risk appetite while more risk aggressive investors search for higher yields.
"The Philippines continues to enjoy one of the highest growth rates in the world but the FSCC is taking the pre-emptive move of assessing the possible consequences of the global growth moderation," said BSP Governor and FSCC Chairman Benjamin E. Diokno.
The Council also discussed its various communication initiatives that would raise awareness of financial stability to varied audiences. Various audio-visual presentations are being finalized and would soon be made available to the public.
The FSCC is chaired by the BSP Governor and is composed of the Department of Finance, the Insurance Commission, the Philippine Deposit Insurance Corporation, the Securities and Exchange Commission as well as the BSP as member institutions. It is the venue for financial market authorities to identify, monitor, manage, and mitigate the build-up of system risk in the Philippine financial system.