By Lee C. Chipongian
Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla Jr. said the BSP will now actively contribute in the crucial cross-border data reporting to the Bank for International Settlements (BIS) to create a more transparent global fund flow tracking.
“The BSP has been working diligently on instilling high-quality banking data and our inclusion as a BIS-reporting jurisdiction validates our efforts in meeting the international standards,” Espenilla said on Sunday.
The Basel-based BIS, an organization of central banks, has included the BSP’s cross-border banking data as part of its international banking statistics (IBS) beginning this month.
The BSP said its local database has met the “rigorous BIS standards for completeness and quality” and will join 50 other countries included in the BIS’s “elite group.”
“Our inclusion into the elite group provides us with more granular cross-border banking data that would be very critical in formulating well-informed policies when and how they may be needed,” Espenilla said. “The value to regulators of having such a view cannot be overemphasized in today’s market.”
The BSP chief said “the benefits accrue the other way as well because our ability to provide high-quality data can only enhance the transparency of global transactions and funding flows … the BSP is only too happy to contribute significantly to such an endeavor.”
The BSP said BIS General Manager Agustin Carstens has informed the central bank that it will now consider the Philippines as a reporting country for the locational IBS and will “start including Philippine data in the global aggregates.”
Carstens, as quoted by the BSP, said “the participation of the Philippines in the IBS is a significant milestone (because) it confirms the international importance of the Philippine banking system.”