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 statement Sunday 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. According to Philippines News Agency, the creation of the ALCO in 2022 is chaired by the Secretary of Finance and 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. Recto emphasized the crucial role of GFIs in nation-building, providing essential financial support to priority sectors that drive the country's development goals. He highlighted the importance of GFIs in supporting small farmers, fisherfolk, and micro, small, and medium enterprises (MSMEs), which are vital to the economy. 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, 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. Recto expressed optimism about the GFIs' financial performance, noting significant potential to deliver stronger results if current positive trends continue. The May 27 meeting was attended by various DOF and GFI officials, with the next ALCO meeting tentatively scheduled in July.