BSP chief to co-lead regional group

BANGKO Sentral ng Pilipinas (BSP) Governor Benjamin Diokno has been named as one of the new leaders of an international institution that recommends risk and prudential standards for the financial markets.

In a statement on Monday, the central bank said Diokno would serve a two-year term as co-chairman of the Regional Consultative Group for Asia of the Financial Stability Board (FSB-RCGA).

His term would start on July 1, together with Deputy Governor N.S. Vishwanathan of the Reserve Bank of India.

Besides the Philippine and Indian central banks, financial authorities from Australia, Brunei Darussalam, Cambodia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, Singapore, Sri Lanka, Thailand and Vietnam are also members of FSB-RCGA.

FSB-RCGA is one of the six regional consultative groups established by Basel, Switzerland-based FSB in 2011.

FSB was established in 2009 at the height of the global financial crisis, according to the BSP. It is mandated with developing and promoting the implementation of effective regulatory, supervisory and other financial sector policies in the interest of financial stability.

This, the central bank said, made the FSB well-positioned to globally coordinate with national financial authorities and international standard setting bodies with respect to the international reform agenda.

The Bangko Sentral also said 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 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,” it added.

Previously Budget secretary, Diokno was appointed as the new Bangko Sentral chief on March 4 to serve the unexpired term of the late Nestor Espenilla Jr., who succumbed to tongue cancer on February 23. His term will end in July 2023.

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