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Structure of the BSP

Background, Organizational Structure, and Functional Structure

Stefen Ching

on 15 September 2011

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Transcript of Structure of the BSP

Organizational Structure BSP What is BSP? Central bank of the Republic of the Philippines

Highest regulatory body in the financial system

Established on July 3, 1993 pursuant to the provision in the 1987 Constitution

Took over the Central Bank of the Philippines as the country’s central monetary authority
Philippine Eagle - strength, clear vision and freedom

Three Stars - three pillars of central banking (price stability, stable banking system and safe/reliable payment system)

Blue - stability
Gold- wisdom, wealth, idealism and high quality
White - purity, neutrality and mental clarity

Non-serif Bold - solidity, strength and stability

Round - continuing and unending quest to become an excellent monetary authority
The BSP aims to be a 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.

BSP is committed to promote and maintain price stability and provide proactive leadership in bringing about a strong financial system conducive 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.
Vision & Mission BSP, A History 1900 Act No. 52 was passed
by the First Philippine
Commission placing
all banks under
the Bureau of
Treasury. 1929 The Bureau of Banking
under the Department
of Finance took over
the task of banking supervision. 1939 A bill establishing a central bank was drafted by Secretary
of Finance Manuel Roxas 1946 A joint Philippine-American Finance Commission was created to study the Philippine currency and banking system. 1947 A Central Bank Council was formed to review the Commission’s report and prepare the necessary legislation for implementation. 1948 President Manuel Roxas submitted to Congress a bill “Establishing the Central Bank of the Philippines” 1948 The bill was signed into law as Republic Act No. 265 (The Central Bank Act) by President Elpidio Quirino. 1949 The Central Bank of the Philippines (CBP) was inaugurated and formally opened with Hon. Miguel Cuaderno, Sr. as the first governor. 1972 RA No. 265 was amended by Presidential Decree No. 72
domestic and international monetary stability

The CBP’s authority was expanded to include not only the supervision of the banking system but also the regulation of the entire financial system. 1949 Further amendments were made with the issuance of PD No. 1771 to improve and strengthen the financial systemFurther amendments were made with the issuance of PD No. 1771 to improve and strengthen the financial system 1986 Executive Order No. 16 amended the Monetary Board membership to promote greater harmony and coordination of government monetary and fiscal policies. 1993 The Bangko Sentral ng Pilipinas (BSP) was established to replace the CBP as the country’s central monetary authority. Operations BSP’s Objectives

To maintain price stability conducive to a balanced and sustainable economic growth
To promote and preserve monetary stability and the convertibility of the national currency.


Provides policy directions in the areas of money, banking and credit
Supervises operations of banks and exercises regulatory powers over non-bank financial institutions with quasi-banking functions Liquidity Management

Currency Issue

Lender of Last Resort

Financial Supervision

Management of foreign currency reserves

Determination of exchange rate policy

Other activities Functions Organizational Structure Executive Managment Provides administrative
and secretarial services Prepares opinions and rulings, as well as prosecutes or defends cases involving the BSP, the MB, and Management Evaluates bank irregularities and anomalies Monitors the internal control system of the BSP
Monitors utilization of security materials Manages the BSP’s international reserves
Undertakes open market operations
Participates in the Philippine Dealing System Assists the Anti-Money Laundering Council
Receives and investigates suspicious transactions
Aggregates the various risk exposures of the Bank
Identifies appropriate risk control measures
Ensures that appropriate risk management practices are being implemented at all times. Provides recommendations along the areas of manualization, business process reengineering, and systems support. Provides technical support to Management Implements the public relations and advertising programs of the BSP BSP Governors Amando M. Tetangco, Jr. Monetary Stability Sector The Monetary Stability Sector is primary concerned with the formulation and implementation of BSP’s monetary policy.

Activities include serving the needs of other banks through accepting deposits, servicing withdrawals and extending credit through the rediscount facility Supervision and Examination Sector 1. SES Operations Management Group
Provides dedicated support to the SES management in:
optimizing scarce examination resources
monitoring progress in the accomplishment of critical supervision tasks
Assesses the training needs and capacity development requirements of the SES personnel, and develops the corresponding training courses and other development interventions in coordination with the BSP Institute and the Human Resource Development Department.

2. Central Applications and Licensing Group
Evaluates requests of banks and non-banks which require approval of the BSP

3. Financial Consumer Affairs Group
Conducts advocacy initiatives aimed at educating and supporting the interest of the public on financial literacy issues.

4. Office of Supervisory Policy Development
Functions as central policy research and development unit of the SES. 
Conducts continuing research on financial institutions supervision requirements

5. Supervisory Data Center
Serves as the central collection, quality assurance, processing, and distribution point of all financial sector data coming into or being released by the SES.
Responsible for developing and maintaining the financial system databases of the Sector in a state-of-the-art data warehouse environment. 1. Core Information Technology Specialist Group
Conducts information technology (IT) supervision and examination of banks and non-bank financial institutions (FIs). 
Focus is on determining the adequacy of the IT management and operational controls over data integrity and confidentiality, and the assessment of attendant risk exposures.

2. Trust Specialist Group
Specializes in examining risk exposure which may arise from the trust, other fiduciary business, and investment management activities of FIs. 
It also formulates policies, guidelines, rules and regulations consistent/aligned with international best practices.

3. Capital Markets Specialist Group
Specializes in the supervision and examination of capital market activities of BSP-supervised financial institutions (FIs) including treasury operations, market and liquidity risk management, and trading of capital market products such as derivatives and complex structured products.

4. Anti-Money Laundering Specialist Group
Develops guidelines and regulations to support the anti-money laundering efforts of BSP-supervised financial institutions;
Ensures effective implementation of said policies through examination services; and
Conducts off-site monitoring to identify those FIs with operations that present an elevated risk of money laundering activities

5. Micro, Small and Medium Enterprise Finance Specialist Group
Focuses on the specialized risk-based supervision and examination requirements of banks which have adopted a banking business model dedicated to or highly exposed to the micro, small and medium enterprises.

6. Examination Departments I, II, and III
Conduct on-site examination of universal banks and theirsubsidiaries/affiliates, commercial banks and their subsidiaries/affiliates, foreign banks and their subsidiaries/affiliates, thrift and rural banks. 1. Integrated Supervision Department I
Monitors and supervises cooperative banks and non-bank financial institutions, including investment houses with quasi-banking and/or trust license and non-stock savings and loan associations (NSSLAs).

2. Integrated Supervision Department II
Conducts supervision and examination of selected banks and non-bank FIs. 1. Regional Supervisory Services Divisions I and II (Cebu and Davao)
Serve as the focal point of contact between the SES main office and the local banks and their customers in the region. 
Primary responsibility: to provide more timely frontline services relative to Manila in their operating area relating to various FI supervision matters and consumer issues. 

2. Central Point of Contact Department I (CPCD I)
Supervises banking groups and large banks that have complex operations and dynamic risk profiles. 
FIs under CPCD I include large private universal/commercial banks, government banks, foreign banks, and large thrift banks that operate on a national scale.

3. Central Point of Contact Department II (CPCD II)
Supervises banks operating on a regional and local level that comprise the overwhelming majority of the players in the banking system.
Banks under CPCD II include region and community-based thrift and rural banks, including microfinance-oriented banks. Resource Management Sector Serves the human, financial and physical resource needs of the BSP.
Involves many activities which aim the organisational effectiveness and improvement of the quality of work life for all the organisation’s staff.
Deputy Governor: Juan de Zuñiga Jr. Security Plant Complex R&D Conducts research and development studies on various aspects of the operations of the Security Plant Complex (SPC), especially on banknote printing and coin minting operations (BSP, 2010).
Financial Services and Data Mgmt Prepares financial statements and consolidates cash flows, income statements and balance sheets for SPC;
Records financial receipts and disbursements and processes bills for payment; and
Coordinates data collection activities and provides technical support on software applications. Banknotes & Securities Printing Manages and performs the printing of banknotes and other security documents (i.e. passports and land titles). Mint and Refinery Operations Manages and performs the minting of coins, commemorative medals, and refines gold purchased from local panners/miners. General Services Manages the procurement of supplies, equipment, and services for the SPC and the general maintenance and upkeep of its facilities. Abrigo, LLoyd Kevin Co
Beltran, Enrique Anzures
Ching, Stefen Clifford Du
Ilicito, Lyd Iris Tayo
Murcia, Peter Dominic Ilao
Sese, Sheila Mae Pua
Tan, Romina Fiel Marasigan
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