MANILA, Philippines – The Philippine central bank governor promised to help new market economies gain greater influence in combating systemic risks on the international stage after he was reappointed to another term as chairman of a regional financial stability group.
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno serves another term as Co-Chair of the Regional Consultative Group for Asia (RCGA) on the Financial Stability Board.
This marks the first time a chairman of the group is serving a second term of two years at the helm of Diocno’s current term, which expires at the end of June 2021.
Continuing his recent initiatives, Governor Diokno said he wants to strengthen the voice of the new economies in the region in the discussion of systemic risks at the global stage.
“I am grateful for the privilege and welcome the challenge of serving as the second chair of the RCGA,” he said. “I look forward to the opportunity to work actively with my colleagues in the RCGA and address the aftermath of the pandemic and restore financial stability in the region.”
The RCGA brings together national authorities responsible for financial stability in 17 jurisdictions. Its members include financial authorities from Australia, Brunei Darussalam, Cambodia, China, Hong Kong SAR, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka, Thailand and Vietnam.
Diokno first took the helm of the RCGA in July 2019, and his second term ends in June 2023.
He explained that “the very point of the FSB in setting up the regional consultation groups is that the discussions extend beyond the formal G20 membership. Global standards and best practices apply to everyone, and we should take this opportunity to shape the discussion and its agreed outcomes. ”
Initially, the Group’s policy objectives for financial stability were drawn from the experience of the global financial crisis in 2007, but the emergence of the COVID-19 virus was an unforeseen risk.
Experts have pointed out that COVID-19 was a test case for how far the world has come on the financial stability agenda after the global financial crisis, despite the lack of a playbook on the political issues caused by the pandemic-cum recession.
“I have said it before that our guiding principle moving forward is balance,” Diokno said.
“We need to weigh up the measures that meet the needs today, while being aware of the possible long-term effects of these interventions,” he added. “As regulators, we need to weigh the security that the regulations provide against the need for flexibility so that we can respond to this once-in-a-lifetime crisis.”
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