A Securities and Exchange Commission oversees mutual funds and securities activities, while the Commissioner of Cooperatives currently supervises the credit unions which provide a vital intermediation function for a large segment of the population. With an open external current and capital account, the domestic financial sector is closely integrated with the rest of the world.
As a result, financial problems abroad do spill over into the domestic economy. Given their collective size, influence and international connectedness, it is critical for local financial entities to rigorously follow strong governance practices; failure to do so would add another source of deep vulnerability to their own operations and potentially to the wider financial system. 5  http://www.fsb.org/2017/05/fsb-sets-out-next-steps-on-work-to-strengthen-governance-frameworks-tomitigate-misconduct-risks/ . 4  7.