BSP, IMF concerned over risks tied to non-bank financial sector

MACTAN, Cebu - The Bangko Sentral ng Pilipinas (BSP) and the International Monetary Fund (IMF) raised concerns over the growing risks tied to the expansion of the non-bank financial sector and emerging technologies.

- Keisha Ta-asan

During the 2024 BSP-IMF Systemic Risk Dialogue in Cebu, BSP Governor Eli Remolona Jr. said the non-bank financial sector has noticeably grown since the global financial crisis.

He said that while the growth of the non-bank sector diversifies the financial landscape and reduces concentration risks, the risks have not entirely shifted away from traditional banks.

Instead, the interplay and interdependencies between banks and non-banks create a more complex dynamic that regulators need to monitor carefully.