Finance Secretary Ralph G. Recto is on top of ensuring the sound fiscal health of government financial institutions (GFIs) as he regularly convenes the Asset Liability Management Committee (ALCO) to closely monitor and guide their financial performance and risk posture.
This proactive 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.
“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,” the Finance Chief said.
“My marching orders to GFIs: Do better, deliver faster, and provide more. Kailangan nating tiyaking matatag, mahusay, at epektibo ang ating mga GFIs—dahil sa kanilang tagumpay nakasalalay ang tagumpay ng sambayanang Pilipino,” he added.
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, and to recommend strategic actions aligned with the national government’s fiscal objectives and development agenda.
The ALCO meets quarterly to 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.
These GFIs include the Land Bank of the Philippines (LANDBANK), the Development Bank of the Philippines (DBP), the Social Security System (SSS), the Government Service Insurance System (GSIS), the Philippine Health Insurance Corporation (PhilHealth), the Philippine Guarantee Corporation (PHILGUARANTEE), the Philippine Deposit Insurance Corporation (PDIC), the Philippine Crop Insurance Corporation (PCIC), and the Pag-IBIG Fund.
In its 14th meeting last May 27, 2025, the ALCO members affirmed to continue complying with the set investment guidelines on conglomerate exposures across loans, fixed income, and equities, effectively minimizing concentration risk.
All GFIs also 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, 2025, ALCO’s total net worth rose by 1.86% quarter-on-quarter, driven by the increased reported net worth of most GFIs. Year-on-year, the group’s combined net worth posted a robust 4.16% growth.
“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,” said Secretary Recto.
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 next ALCO meeting is tentatively scheduled in July 2025.
