Philippine central bank eyes developing local capital markets

It will help make the financial system more resilient, the BSP Governor said.

The development of the Philippine capital markets will help make the financial system more resilient, the local central bank’s top official said.

Speaking at an economic briefing held on 27 May, Bangko Sentral ng Pilipinas (BSP) governor Eli Remolona, Jr. said that the central bank is “pushing on multiple fronts to deepen our capital markets.”

“Such deepened markets will enhance our transmission mechanisms for monetary policy and make our financial system more resilient,” the governor said in a video message shown at the Philippine International Convention Center on 27 May.

Deepening the country’s capital market also diversifies funding sources for investments, businesses, and the economy, Remolona said.

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Governor Remolona also stated that local banks are well capitalised and flush with liquidity, putting them in a “good position” to continue supporting the growth of the Philippine economy and tame inflation.

He added that the BSP will continue to take steps to digitize in general and improve payments and settlement systems in the country. 

The BSP will also help investors, small businesses, and Filipino families with adjusting to increasingly digitized transactions.