Taytay, Melchor Mr.

Hermenio Cabusog

St.Peter’s College Misamis Oriental Incorporated

IWorkout 1:

Financial System in the Philippines

Why the Philippine Financial System remains functional and stronger

for the economy even during this pandemic?
Philippine Financial System’s financial system is like the heart of every human
being, if it stops working then the person is dead, the same that the financial
system stops working then the economy would collapse .It is inherent in every
society ,the law of supply and demand. But today, we are facing such crisis, the
pandemic, the Philippine financial system has emerged from an initial period
extreme stress, in large part due to governments efforts to stimulate the economy,
central banks speed at addressing market disruptions, and the resilience of financial
institutions. How does the said nation have shouldered this kind of problem? How
does the financial regulators are responding to corona virus and also to speculate
how the pandemic might lead to further reforms of financial regulation?

The announcement was made on Thursday (September 3, 2020) by Bangko

Sentral ng Pilipinas (BSP) Governor Benjamin Diokno, as he announced that he
would go into self-quarantine after potentially coming into contact with a COVID-
19 person recently. “ Both check clearing and financial markets operations will go
on, but they will be run from the BSP’s Quezon City office,” he said in a mobile
phone message to the media. “ In the meantime, the BSP headquarters [in Manila]
will be disinfected” “ The BSP will continue to look after the welfare of its
personnel as we provide the requirements of the financial system and the broader
economy.” He said,

The central bank has put in place and measures to ensure that the Philippines
economy remains humming by activating an alternate site from which local
financial markets are supervised and checks from banks are cleared. Further, the
BSP also relaxed your-customer (KYC) requirements for both over the counter and
electronic or online transactions. This is to make sure that Filipinos continue to
have access to basic government and financial services amid the COVID-19
situation. Financial System is made up of a set of complex and closely
interconnected financial institutions, markets, instruments, services, transactions .
These have a vital role that gives an ingredient for economic growth. In this time
of pandemic, it has contributed a lot to economy where people had used it any
financial transactions. Without financial institutions people wouldn’t be able to
take advantage of rising and falling interest rates and there would be no saving of
money, other that the stacks you stuff under your mattress. Without financial
markets, borrowers would have problems finding lenders, because a market is the
place where financial assets are created or transferred. This is also the reasons why
financial system remains functional as the pandemic continues to amidst the
citizen. Financial system gives hope to every individual to remain sturdy and
continue to stand still behind this crisis that everyone are facing.

Today, I examine why the structure of financial system matters. The

financial system plays a critical role in the economy and it really needs to remain
functional and stronger even if pandemic has afflicted many. Without financial
system which enables financial intermediation process to facilitate the flow of
funds between savers and borrowers, the economy will go down as poor as a dying
animal, Why? Because financial system is the soul of our economy, it is the one
who ensures that financial resources are allocated efficiently towards promoting
economic growth and development. That’s why; financial regulators are doing
their best to make the Philippine Financial System functional and stronger for the
economy amidst this pandemic. The Philippine banking industry is not spared from
the adverse impact of this pandemic.
 Citation and Reference

Lee,S.Y ,

Jao Y.C

(2020)

Financial Structures and Monetary Policies ( Central BANK PHILIPPINES)

Diwa C Guinigundo

( Bagko Central ng Pilipinas)

(2020)

The Banking System in Emerging Economies

Daxim L. Lucas

March 2020

PH financial system to stay up and running amid virus pandemic, says BSP
iWorkout II.

REFLECTION: PHILIPPINE CAPITAL MARKET AMID DURING PANDEMIC

For many of us, it has been a stunning experience to find ourselves adjusting our
daily routines to take safety precautions to protect ourselves, loved ones and
neighbors. In the midst of this global pandemic, we are reflecting in real-time on
how systems undergo large scale transformation, how government, businesses
schools, cities and communities adapt make fundamental changes to existing ways
of working. But as I take a look on how does Philippine capital market had face
and shouldered the amid of pandemic.

The Philippines halted stock, bond and currency trading until further notice,
becoming the first country to shut financial markets in response to the widening
coronavirus pandemic. The closures take effect on Tuesday, according to
statements from the Philippine Stock Exchange and the Bankers Association of the
Philippines. “There will be no trading at the Philippine Stock Exchange, Inc and no
clearing settlement until further notice to ensure the safety of employees and
traders in light of the escalating cases of the corona virus disease,” the exchange
said.
 The development of the situation around the COVID-19 virus has been
unpredictable and will most likely continue to be so in the foreseeable future. The
whole world is affected by this pandemic and various measures are taken on the
national levels to limit further spread. Philippines are highly affected with this
crisis, many people had been afflicted and many businesses are not functioning
good as like before this pandemic happens. The nature of this are mainly
concerned with physical isolation and separation of people to prevent further
contagion. The Philippine economy, however is suffering. Some of the early
consequences are already visible through currency and stock market fluctuations.
Although there is a glimmer of hope for improvement, we have yet to see how far-
reaching the consequences of this economic will be. But whether or not a trodden
path exists for any particular company, organization, government entity, or
individual even, there is one absolute certainty: that the situation we’re in now
changes everything for everyone.