Philippines to tighten oversight of pawnshops and NBFIs

The council is also working to improve its monitoring of risks and interlinkages in the system.

Philippine regulators have touted plans to strengthen oversight of non-bank financial institutions (NBFIs) and improve monitoring of financial risks.

The Financial Stability Coordination Council (FSCC) said in a meeting on 20 May that it is strengthening oversight of NBFIs, including quasi-banks, investment houses, non-stock savings and loan associations, pawnshops, and trust corporations.

The council said that it is also working to improve how it monitors system-wide risks and interlinkages, according to an online post by the Bangko Sentral ng Pilipinas (BSP).

The FSCC’s quarterly meeting discussed risks to the Philippine financial system, which included the ongoing war in the Middle East, vulnerabilities in corporate debt, and rising household debt. 

The FSCC warned that a prolonged war in the Middle East could push oil prices higher. This could weaken market sentiment, tighten financial conditions, and drag both domestic and global growth, the council said.