BSP Governor Benjamin E. Diokno has been named as the incoming co-chair of the Regional Consultative Group for Asia of the Financial Stability Board (FSB-RCGA). The FSB is an international institution that recommends risk and prudential standards for the financial markets.
The BSP Governor will serve a two-year term, commencing on 1 July, together with Deputy Governor N.S. Vishwanathan of the Reserve Bank of India. The incoming co-chairs of the FSB-RCGA were announced during the 16th FSB-RCGA meeting held last 14 June in Kuala Lumpur, Malaysia.
Governor Diokno’s co-chairing of the FSB-RCGA comes at a time when various market reforms are at an important stage while evolving global developments could again challenge financial stability. With Republic Act No. 11211 – the amended Charter of the BSP – formally recognizing financial stability as a mandate of the BSP, the Governor’s co-chairmanship further highlights the thought leadership of the institution in the pursuit of financial stability while reinforcing the Philippines’ active participation in the discussions on the global reform.
The FSB, which is based in Basel, Switzerland, was established in 2009 at the height of the Global Financial Crisis. Its mandate is to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies in the interest of financial stability. The FSB is then well positioned to globally coordinate with national financial authorities and international standard setting bodies with respect to the international reform agenda.
In 2011, the FSB established six regional consultative groups to provide an organized and continuing venue for financial authorities from FSB member and non-member countries to exchange views on vulnerabilities affecting financial systems and on initiatives to promote financial stability.
Members of the FSB-RCGA include financial authorities from Australia, Brunei, Cambodia, China, Hong Kong SAR, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, Thailand and Vietnam.