The Asian Development Bank (ADB) has approved a $3-million (about P120 million) technical assistance (TA) to the Securities and Exchange Commission (SEC) for the development of the capital market and other non-bank financial institutions (NBFIs).
The SEC said $2 million will be contributed by the ADB while $1 million will be the counterpart fund of the Philippine government.
The SEC will be the executing agency. It will set up an inter-agency coordination committee chaired by the chairman of the SEC, and comprising representatives from the Bangko Sentral ng Pilipinas, Bureau of Treasury, Department of Finance, National Economic and Development Authority, Philippine Stock Exchange and the Capital Market Development Council that consists of members from business and industry associations.
The TA will focus on reorganization and strengthening of the SEC, introduction and implementation of prudential standards and market regulations for participants based on international best practices, evaluating NBFI's operational and financial viability and status of compliance with prudential regulations; developing SEC's systems, procedures and capacity for market monitoring and surveillance, reporting requirements and systems and enforcement and prosecution mechanisms.
The giant was approved following the request of the Philippine government during the 1999 ADB Country Programming Mission to promote the development of a broad-based, sound and diversified NBFI sector.