MANILA – The Department of Finance (DOF) is ensuring the sound fiscal health of government financial institutions (GFIs) by regularly convening the Asset Liability Management Committee (ALCO) to closely monitor and guide their financial performance and risk posture.
Finance Secretary Ralph Recto said in a recent statement that the oversight is in line with President Ferdinand R. Marcos Jr.’s directive to keep GFIs strong, stable and fully aligned with their mandate to serve the Filipino people.
Chaired by the Secretary of Finance, the creation of the ALCO in 2022 is in line with the Administrative Code of 1981, which gives the DOF the authority to oversee and harmonize the policies of GFIs. The ALCO also recommends strategic actions aligned with the national government’s fiscal objectives and development agenda.
Quarterly meetings discuss the investment performance of GFIs and monitor their current investment exposures in private corporations and conglomerates to ensure that they avoid concentration risk in any single private conglomerate, including its subsidiaries and affiliates.
The GFIs include the Land Bank of the Philippines (LandBank), Development Bank of the Philippines (DBP), Social Security System (SSS), Government Service Insurance System (GSIS), Philippine Health Insurance Corporation (PhilHealth), Philippine Guarantee Corporation (PHILGUARANTEE), Philippine Deposit Insurance Corporation (PDIC), Philippine Crop Insurance Corporation (PCIC), and Pag-IBIG Fund.
“GFIs play a very crucial role in nation-building. They provide essential financial support to priority sectors that drive our development goals — creating jobs, raising incomes and reducing poverty. Kabilang dito ang ating maliliit na magsasaka, mangingisda, at MSMEs na siyang bumubuhay sa ating ekonomiya (This includes our small farmers, fisherfolk, and micro, small, and medium enterprises that are the lifeblood of our economy),” Recto said.
“My marching orders to GFIs: Do better, deliver faster and provide more. We need to ensure that our GFIs are strong, efficient and effective because the success of the Filipino people depends on their success,” he stressed.
During their last meeting on May 27, ALCO members vowed to continue complying with the set investment guidelines on conglomerate exposures across loans, fixed income and equities to minimize concentration risk.
All GFIs reported positive returns on their investment portfolios since the same period last year, reflecting prudent asset allocation and strategic investment decisions. As of March 31 this year, ALCO’s total net worth went up by 1.86 percent quarter-on-quarter, driven by the increased reported net worth of most GFIs.
Year-on-year, the group’s combined net worth rose by 4.16 percent. “With most GFIs on track to meet or exceed their agency income targets by year-end, there remains significant potential to deliver even stronger financial performance — especially if current positive trends continue through the succeeding quarters,” Recto said.
Meanwhile, most GFIs are anticipated to post positive net earnings for the full year 2025 on top of their commitments to deliver and expand services to the nation.
The May 27 meeting was attended by DOF Undersecretary Maria Luwalhati Dorotan Tiuseco, National Treasurer Sharon Almanza, DBP president and chief executive officer (CEO) Michael De Jesus, PHILGUARANTEE president and CEO Alberto Pascual, Pag-IBIG Fund Chief Executive Officer Marilene Acosta, SSS President and CEO Robert Joseph de Claro, GSIS president and general manager Jose Arnulfo Veloso, PhilHealth president and CEO Edwin Mercado, PCIC president Jovy Bernabe, LandBank executive vice president Liduvino Geron, and PDIC senior vice president Sandra Diaz.
The next ALCO meeting is tentatively scheduled in July. (PNA)