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All about Bangko Sentral ng Pilipinas

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Jeffrey Javellana

on 9 March 2014

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Transcript of All about Bangko Sentral ng Pilipinas

All about Bangko Sentral ng Pilipinas

What is the Mission and Vision of Bangko Sentral Ng Pilipinas
The BSP aims to be the world-class monetary authority and a catalyst for a globally competitive economy and financial system that delivers a high quality of life for all filipinos.

The First Pillar
The BSP's main responsibility is "TO FORMULATE AND IMPLEMENT PILOCY IN THE AREAS OF MONEY, BANKING AND CREDIT", with the primary objectives of preserving price stability
The Second Pillar
The BSP "supervises banks, quasi-banks and their subsidiaries as well as affiliates by ensuring compliance with prudential rules and regulations".
The Third Pillar
The BSP takes the lead in maintaining a safe, sound and efficient payments and settlements system for the country. Everyday, millions of payment transactions are being made among various parties within the Philippines as well as between the Philippines and other countries.
What do you know about the Bangko Sentral ng Pilipinas
~The BSP in the Philippines' central bank. Its forerunner was Central Bank of the Philippines (CBP), which was founded in 1949. 1993, the CBP ceased operation. The new BANGKO SENTRAL NG PILIPINAS (BSP) was established by Conggress pursuant to R.A 7653 or the BSP CHARTER.

~Its new logo, adopted in 2010 features the Philippine Eagle which symbolizes the BSP's aspiration to soar toward becoming a word-class monetary authority. It has Three Stars representing the three pillars of central banking.

~To carry out its mandate, the BSP focuses on these Three Pillars of Stregth:
The BSP's Various responsibilities touch the lives of many Filipinos.
Custodian of the country's official reserves
BSP maintains a comfortable level of reserves to reduce the economy's vulnerability against global economic risks, support the needs of a more dynamic and globally integrated economy, and to preserve the international stability and convertibility of the Philippine peso.
Issuer of money
BSP has the exclusive authority to issue the national currency.
this entails keeping inflation low and stable to promote economic efficiency and improve the well-being of Filipinos. This is the primary mandate of the BSP
Price Stability
Financial Institutions' Stability
The BSP seeks to maintain the health of the banking system so that it can effectively intermediate between providers and users of funds. The BSP enforces rules and regulations to ensure that banks conduct business in a safe and sound manner.
Payments and Settlements System Efficiency
This helps ensure the safe, timely, and accurate payment and settlement of financial transactions.
Maintaining Price Stability
It uses its policy tools to keep inflation low and create the environment for sustained and inclusive growth. Price Stability preserves the purchasing power of the filipino people
Supervises All Banks
It monitors and examines the operation of banks and quasi-banks all over the country. It also regulates-under special laws-other financial institutions such as non-stock savings and loan associations as well as pawnshops. If the banks are strong, people are encouraged to save and, in the process, help finance economic activities. Jobs are created. Income is earned.
Issues Philippine banknotes and coins.
These are used by the public in daily business and commercial transactions.
Price Stability
refers to a condition of "low and stable inflation". By keeping inflation low, the BSP helps ensure "Strong and Sustainable economic growth and better living standards. With price stability, prices of goods do not rise too quickly. People have a degree of certainty when deciding how to spend, save or invest their money.
Monetary Policy
refers to the "measures or action taken by the BSP to help keep inflation low and stable". The BSP conducts monetary policy using an approach called "inflation targeting".
Universal Banks
Are the Largest Banking Institutions. They engage in the most complex banking transactions.
Rural and Cooperative banks
Tend to be smaller and to run simpler operations. They provide greater outreach to customers in the countryside. Some thrift and rural banks are also designated as "microfinance-oriented banks. These focus on entrepreneurial poor as key customers.
Some transactions are simple, involving small amounts. Examples of these are payments settled in
stored value cards
, as well as
debit cards
Other transactions are more complex, involving large payments. Examples are
interbank loans, purchases and sales of government securities, settlements of the peso leg of foreign currency sales
, as well as
high-value customer payments.
Bank of banks
The BSP does not deal directly with the public. Instead, its
clients are the banks
For example, the BSP grants loans to banks for their short-term liquidity needs
Lender of last resort
As the lender of last resort, the BSP provides
loans and advances to banks

in times of emergencies, or if financial problems directly threaten monetary and financial stability.
Why is the BSP changing the designs of our money
As a matter of practice, central banks regularly change the designs of their money-whether coins or banknotes- to guard against counterfeiters. By making it very difficult and costly for counterfeiters to produce exact copies of our money, we protect the integrity of our currency against criminals. While other central banks redesign their banknotes every 10 years on average, our present currency series has been in place for about 25 years now.
How will BSP prevent the spread of counterfeit or fake money?
The BSP has upgraded the security features in all of our new generation banknotes to make it easier for the public to protect themselves from receiving fake money. The BSP will continue to mount a nationwide information campaign to educate our people on how to tell genuine banknotes from counterfeits.
When will the new currency be available?
The new banknotes became available in December 2010, nearly three years after initial discussions on a new generation currency series started. Meanwhile, for the new coins we estimate that it will also take about three years to develop the new generation coin series, from concept to actual delivery.
Based on Jim Harvey's speech structures
BSP i committed to promote and maintain price stability and provide proactive leadership in bringing about a strong financial system conductive to a balanced and sustainable growth of the economy. towards this end, it shall conduct sound monetary policy and effective supervision over financial institutions under its jurisdiction
Manages the country's international reserves
These are foreign assets mostly composed of investments in foreign-issued securities, gold, and foreign exchange.
BSP determines the country's exchange rate policy
The current policy allows market forces to determine the exchange rate. this flexibility ensures that the true level of scarcity of foreign exchange is reflected and induces a more efficient allocation of resources in the economy.
Banker of banks
As the lender of last resort, it can provide loans and financial assistance to banks when necessary.
The Al-Amanah Islamic Banks of the Philippines
Which was created by a special law, is the only islamic bank operating in the country at present
All notes and coins issued are fully guaranteed by the government and are considered legal tender for all private and public debts.
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