BSP Meets Estanislao-Led Coalition of ICD and Partners to Advance Capital Market Transformation

Dr. Vaughn F. Montes, FICD

Fellow

Institute of Corporate Directors

Mr. Kenneth Vicarl M. Lagera, AICD

Associate

Institute of Corporate Directors

MANILA, Philippines — In a major push to modernize the country’s financial landscape, Dr. Jesus P. Estanislao, Chairman Emeritus of the Institute of Corporate Directors (ICD), led a high-level delegation to meet with Bangko Sentral ng Pilipinas (BSP) Governor and Monetary Board Chairman Eli Remolona Jr. on March 23, 2026. The meeting served as a critical platform for the Capital Markets Transformation Roadmap Initiative (CMTRI) to present a strategic blueprint aimed at reversing decades of underdevelopment in the Philippine capital markets.

The meeting focused on a comprehensive strategy to transform the Philippine capital markets from a regional laggard into a robust engine for economic growth. Joining Governor Remolona were top central bank officials: Deputy Governor Lyn Javier, Monetary Board Members Rosalia De Leon and Romeo Bernardo, and Senior Assistant Governor Edna Villa.

Dr. Jesus P. Estanislao convened the CMTRI working group in response to the Organization for Economic Co-operation and Development (OECD) Review of the Philippine Capital Market in 2024, which highlighted the low ranking of the Philippines relative to peer countries in terms of governance, capital markets activity and efficiency, and mobilizing external financing for non-financial corporations. Supported by the Securities and Exchange Commission (SEC), the CMTRI represents a strategic alliance between the Institute of Corporate Directors (ICD), the Financial Executives Institute of the Philippines (FINEX), the Capital Markets Development Foundation, Inc. (CMDFI), and the Center for Research and Communication (CRC) at the University of Asia & the Pacific (UA&P).

The CMTRI is powered by a knowledgeable team of professionals from each participating organization. From ICD, this includes Chair Atty. Benedicta Du-Baladad; President Tomasa Lipana; Vice Chair Senen Matoto, who leads the CMTRI; and Teaching Fellow and former Trustee Dr. Vaughn Montes. Other key leaders include CMDFI President Eduardo Francisco, past FINEX President Santiago Dumlao, Jr., FINEX Board Director Paolo Azurin, FINEX member Andre Ramirez, and past CRC President Dr. Winston Padojinog. Administrative support is provided by ICD member Kenneth Lagera, who serves as secretariat of the CMTRI.

A Vision for Governance and Market Trust

The OECD report highlighted issues in governance that hinder investor confidence in domestic capital markets, such as the role of independent directors, protection of minority stakeholders, and overall shareholder governance. ICD, as a leading proponent of good corporate governance, is uniquely positioned to support regulatory authorities and financial industry associations in pushing for governance reforms required to strengthen capital markets.

Drawing from Focus Group Discussions (FGDs) with issuers, intermediaries, and investors in 2025, the CMTRI presented a series of high-level reform pillars to the BSP. These include modernizing retirement savings by operationalizing the ecosystem for Personal Equity and Retirement Account (PERA) investment products, which would transform the national banking network into a platform for capital market growth. The group presented options to encourage higher secondary market trading and advocated the adoption of a more market-promoting, full-disclosure regulatory regime, as provided in the Securities Regulation Code R.A. 8799, as opposed to a merit-based regime. 

Furthermore, the initiative seeks to reduce market frictions by removing tax-related disincentives and streamlining the onboarding process. The CMTRI identified reforms to increase the supply of and demand for capital markets instruments and encourage greater diversity in the credit ratings of issuers in the market.   

Collaborative Dialogue and Regulatory Insights

During the meeting, BSP leadership welcomed the initiative as a vital step, acknowledging an implied duty to improve capital markets while noting the history of past roadmaps that failed to gain traction. The discussion touched upon the potential for regional harmonization through the cross-listing of shares and the importance of collaborative reform between the BSP and SEC.

Participants emphasized the need for a targeted approach, suggesting that the initiative focus on a small number of high-impact reforms. There was also a strong call for market education to assure investors that mid-tier issues are viable and to promote specialized instruments like Sukuk bonds. 

Dr. Estanislao explained that the ultimate objective of CMTRI is to deepen the domestic capital market and support investment and broader economic development.