BSP chief says PH too dependent on its financial system
BSP chief says PH too dependent on its financial system
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00:00 The year 2023 was a period of financial caution and a policy of treading carefully and passing up on risks.
00:07 The payoff was clear in inflation being tamed and managed from an 8.9% inflation at the beginning of the year to a 3.9% at the end.
00:16 At this time, the economy welcomes companies to raise capital to fund growth such as stock market launches
00:23 and investors to make sound financial decisions based on their own awareness of risks.
00:28 That our Sujan Kim dwells on this Banco Central's latest financial stability report.
00:33 Banco Central ng Pilipinas Governor Eli Ramalona Jr. reports the country is too heavily dependent on its financial market.
00:42 This after the release of the Financial Stability Report for 2023.
00:46 The report is published at least annually and pieced together by the collective wisdom of the Financial Stability Coordination Council or the FSCC.
00:55 The FSCR helps financial market players make better financial decisions based on the knowledge of risks that arise from our own markets.
01:03 As well as out of sight risks that can also turn out to be contagious.
01:07 We wrote it as a thematic narrative that tries to unearth the risks beneath the rosy scenarios.
01:15 The FSCC encourages us to heed and continue the call for caution.
01:20 In 2023, according to FSCC Technical Secretariat Head Dr. Johnny Ravalo was a story of caution.
01:26 The numbers spiked to unseen heights in January of last year.
01:30 The country stayed resilient.
01:32 The year 2023 began with an 8.7 inflation rate yet ended with 3.9.
01:37 While this is indicative of progress, the Interagency Council insists our capital market needs a boost.
01:44 And this needs to be addressed by regulators, issuers and investors.
01:48 We're an archipelago.
01:51 For us to be able to trade, either you swim faster than the sharks or you fly.
02:00 Which means an issuer who's in Butuan must have the same opportunity as an issuer in Bacolod or in Batangas.
02:11 We've got to find a way.
02:13 Right now, there are about 280 companies listed on the Philippine Stock Exchange.
02:18 The chairperson of the SEC says they aim to hit at least 15 more IPOs this year.
02:23 Further adding, the SEC has to hasten the registration of securities because the country has been lagging behind its ASEAN counterparts.
02:32 We are encouraging, in fact, hand-holding issuers, possible candidates for IPOs.
02:41 We have been very aggressive in terms of introducing reforms.
02:46 On the side of the Philippine Deposit Insurance Commission, or PDIC,
02:50 the agency aims to help regulators by improving the confidence of the public,
02:54 helping them feel protected through the safety net systems in place.
02:58 We only come in when the bank is closed.
03:02 And we are, of course, changing that perception.
03:06 We would like the public to view us as both a safety net participant in good times
03:15 and also in bad times when there is a crisis.
03:22 On the other hand, as reported in the FSR, any expectation of an early rate cut is still wishful thinking for now.
03:29 While much progress has been made, the task of calibrating the economy with policy rates is still not complete.
03:35 Soojin Kim from the National TV Network for The New and Better Republic.