Basfin BSP

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http://www.bsp.gov.ph/about/overview.asp
 The central bank of the Republic of the
Philippines
 Established on July 3, 1993
 The BSP took over the Central Bank of
the Philippines, which was established
on January 3, 1949 (central monetary
authority)
 It enjoys fiscal and administrative
autonomy from the National
Government
1) The Philippine Eagle,
our national bird, is the
world’s largest eagle
and is a symbol of
strength, clear vision
and freedom, the
qualities we aspire for
as a central bank
1) The three stars represent the pillars of
central banking: price stability, stable
banking system, and a safe and reliable
payments system. It may also be
interpreted as a geographical
representation of BSP’s equal concern
for the impact of its policies and
programs on all Filipinos, whether they in
Luzon, Visayas or Mindanao
1) The blue background signifies stability
2) The stars are rendered in gold to
symbolize wisdom, wealth, idealism &
high quality
3) The white color of the eagle and the
text for BSP represents purity, neutrality
and mental clarity
 Non-serif, bold for “BANGKO SENTRAL
NG PILIPINAS” to suggest solidity,
strength and stability. The use of non-
serif fonts characterized by clean lines
portrays the no-nonsense professional
manner of doing business at the BSP.
 Round shape to symbolize the
continuing and unending quest to
become an excellent monetary authority
committed to improve the quality of life
of Filipinos.
 This round shape is also evocative of
our coins, the basic units of our
currency.
The BSP Main Complex
 Located in Manila and houses the
offices of the Governor, the Monetary
Board & the different operating
departments/ offices.

The BSP Security Plant Complex


 Located in Quezon City houses a
banknote printing plant, a securities
printing plant, a mint and a gold refinery.
The banknote printing plant and the mint
take care of producing currency notes
and coins, respectively
 Vision  Mission
Naghahangad ang To promote and
BSP na makilala sa maintain price
buong mundo bilang stability, a strong
pangunahing financial system and
tagapamahala ng a safe and efficient
sistema at kaayusan payments and
ng panananlapi at settlements system
ekonomiya upang conducive to an
maitaguyod ang inclusive and
mataas na antas ng sustainable growth
kabuyhayan para sa of the economy
lahat ng Pilipino
The BSP Regional Offices & Branches
 The BSP has three regional offices
performing cash operations, cash
administration, loans and rediscounting,
bank supervision and gold buying
operations.
Chronology of Events:
Central Banking in the Philippines
• Act No. 52 was passed by the First Philippine Commission
placing all banks under the Bureau of Treasury. The Insular
Treasurer was authorized to supervise and examine banks and
1900 banking activities.

• The Bureau of Banking under the Department of Finance took


over the task of banking supervision.
Feb 1929

• A bill establishing a central was drafted by Secretary of Finance


Manuel Roxas and approved by the Philippine Legislature.
However, the bill was returned by the US government, without
1939 action, to the Commonwealth Government.
Chronology of Events:
Central Banking in the Philippines
• A joint Phil-Am Finance Commission was created to study the
Philippine currency and banking system. The Commission
recommended the reform of the monetary system, the formation
1946 of a central bank and the regulation of money and credit.

• A Central Bank Council was formed to review the Commission’s


report and prepare the necessary legislation for implementation.
Aug 1947

• President Manuel Roxas submitted to Congress a bill


“Establishing the Central Bank of the Philippines, defining its
powers in the administration of the monetary and banking system,
amending pertinent provisions of the Administrative Code with
Feb 1948 respect to the currency and the Bureau of Banking and for other
purposes”
Chronology of Events:
Central Banking in the Philippines
• The bill was signed into law as RA No. 265 (Central Bank Act)
Feb 15, by Pres. Elpidio Quirino
1948

• CBP was inaugurated and formally opened with Hon. Miguel


Jan 3, Cuaderno, Sr. as the first governor
1949

• RA. No. 265 was amended by PD No. 72 to make the CBP


more responsive to changing economic conditions.
• PD No. 72 emphasized the maintenance of domestic and
Nov 1972
international stability as the primary objective of the CBP
Chronology of Events:
Central Banking in the Philippines
• Further amendments were made with the issuance of PD No.
1771 to improve and strengthen the financial system, among
which was the increase in the capitalization of the CBP from P10
Jan 1981 million to P10 billion

• EO No. 16 amended the Monetary Board membership to promote


greater harmony and coordination of government monetary and
1986 fiscal policies.

• The Bangko Sentral ng Pilipinas was established to replace the


Jul 3, CBP as the country’s central monetary authority
1993
Overview of
Functions and
Operations
OBJECTIVES
RESPONSIBILITIES
GOVERNANCE
THE MONETARY BOARD
THE GOVERNOR
ADVOCACIES
Objectives
 The BSP’s primary objective is to
maintain price stability conducive to a
balanced and sustainable economic
growth. The BSP also aims to promote
and preserve monetary stability and the
convertibility of the national currency.
Responsibilities
 The BSP provides policy directions in
the areas of money, banking and credit.
It supervises operations of banks and
exercises regulatory powers over non-
bank financial institutions with quasi-
banking functions
Under the New Central Bank Act, the BSP performs the
following functions, all of which relate to its status as the
Republic’s central monetary authority:

Liquidity Management
• The BSP formulates and implements monetary policy aimed
at influencing money supply consistent with its primary
objective to maintain price stability.
Currency Issue
• The BSP has the exclusive power to issue the national
currency. All notes and coins issued by the BSP are fully
guaranteed by the Government and are considered legal
tender for all private and public debts.
Lender of last resort
• The BSP extends discounts, loans and advances to banking
institutions for liquidity purposes.
Under the New Central Bank Act, the BSP performs the
following functions, all of which relate to its status as the
Republic’s central monetary authority:

Financial Supervision
• The BSP supervises banks and exercises regulatory
powers over non-bank institutions performing quasi-
banking functions

Management of foreign currency reserves


• The BSP seeks to maintain sufficient international
reserves to meet any forseeable net demands for
foreign currencies in order to preserve the
international stability and convertibility of the PhP
Under the New Central Bank Act, the BSP performs the
following functions, all of which relate to its status as the
Republic’s central monetary authority:

Determination of exchange rate policy


• The BSP determines the exchange rate policy of
the Philippines. Currently, the BSP adheres to a
market-oriented foreign exchange rate policy such
that the role of BSP is principally to ensure orderly
conditions in the market.
Other activities
• The BSP functions as the banker, financial advisor
and official depository of the Government, its
political subdivisions and instrumentalities and
government-owned and –controlled corporations
Get 1/8
lengthwise sheet
of paper for a
short quiz
 The Monetary Board
 Exercises the powers and functions of
the BSP, such as the conduct of
monetary policy and supervision of the
financial system
 Its chairman is the BSP Governor, with
five full-time members from the private
sector and one member from the
cabinet
In the exercise of its authority, the Monetary Board shall:

 Issue rules and regulations


 Direct the management, operations and
administration
 Establish an HR Management system
 Adopt an annual budget for and
authorize expenditures
 Indemnify its members and other
officials
Nestor A. Espenilla, Jr.
(Chairman)

Carlos G. Dominguez III

Felipe M. Medalla

The BSP
Juan De Zuniga, Jr.
Monetary Board
Peter B. Favila

Antonio S. Abacan, Jr.

V. Bruce J. Tolentino
Monetary & Economics Sector
• Is mainly responsible for the operations/ activities related to
monetary policy formulation, implementation and assessment

Financial Supervision Sector


• Is mainly responsible for the regulation of banks and other BSP-
supervised financial institutions, aw well as the oversight and
supervision of financial technology and payment systems

Currency Management Sector


• Is mainly responsible for the forecasting, production, distribution
and retirement of Philippine currency, as well as security
documents, commemorative medals and medallions

Corporate Services Sector


• Is mainly responsible for the effective management of corporate
strategy, communications, and risks as well as the BSP’s human,
financial, technological and physical resources to support the
BSP’s core functions
 The Governor
 Is the chief executive officer of the
BSP and is required to direct and
supervise the operations and internal
administration of the BSP.
 A deputy governor (or a Senior Asst.
Gov. in the case of the Currency Mgt.
Sector) heads each of the BSP’s
operating sector
His powers and duties shall be to:
 Prepare the agenda for the meetings of the
MB
 Execute and administer policies and
measures
 Direct and supervise the operations and
internal administration of the BSP
 Appoint and fix the remunerations
 Render opinions, decisions and rulings
 Exercise such other powers vested by MB
 Governor of the BSP
 4th Governor, July 3, 2017
 Chairman of the Monetary
Board, (BSP’s principal
policy-setting body)
 Chairman, Anti-Money
Laundering Council (AMLC)
& Financial Stability
Coordination Council
(FSCC) Nestor A. Espenilla, Jr.
 Deputy Governor in-charge
of the Supervision and
Examination Sector (SES)
The BSP is deeply involved in various
projects and activities aimed towards
alleviating poverty, contributing to the global
fight against money laundering, increasing
transparency of monetary policy and
improving the financial literacy of the public

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