By The Financial District
Jan 23, 20221 min
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said the BSP is implementing the “RING” approach in promoting a sound, safe, and resilient financial system.
Photo Insert: BSP Governor Benjamin Diokno speaks at the 73rd inaugural meeting of the Management Association of the Philippines (MAP)
During the 73rd inaugural meeting of the Management Association of the Philippines (MAP), the Governor explained that “R” stands for Risk management guidelines which are continuously enhanced to be responsive to changing environment; while “I” is for Integrity in the financial system and investor confidence.
“N,” on the other hand, stands for New technologies that must be adapted to provide innovative financial products and services; and “G” is for Governance standards that must be continuously strengthened to reinforce the conduct of supervised financial institutions.
According to the BSP Governor, the implementation of corporate and risk governance reforms helped the Philippine banking system withstand the pandemic as these “embed a culture of excellence and good governance among supervised financial institutions.”
In October 2021, the BSP introduced the Environmental and Social Risk Management (ESRM) Framework, marking the second phase of enabling regulations to mainstream and promote sustainability.
“The past 21 months showed the quality of oversight of the board of directors and the robustness of risk management systems of financial institutions, enabling them to quickly resume business operations and deliver financial services even amid the pandemic,” the Governor said.