Bangko Sentral ng

Pilipinas

Overview of the BSP

It was established on 3 July 1993.
The BSP took over from the Central Bank
of Philippines, which was established on 3
January 1949, as the countrys central
monetary authority.
The BSP enjoys fiscal and administrative
autonomy from the National Government
in the pursuit of its mandated
responsibilities.

The BSP Seal

The BSP Seal

Principal Elements:
o 1. The Philippine Eagle
symbol of strength,
clear vision
freedom

o 2. The three stars represent the three pillars of central banking:

price stability
stable banking system
a safe and reliable payments system

o Colors

1. The blue background signifies stability.

2. The stars are rendered in gold to symbolize wisdom, wealth,
idealism, and high quality.
3. The white color of the eagle and the text for BSP represents
purity, neutrality, and mental clarity.

The BSP Seal

Principal Elements:
o Font or Type Face

Non-serif, bold for BANGKO SENTRAL NG PILIPINAS

solidity
strength
stability

The use of non-serif fonts characterized by clean lines portrays the nononsense professional manner of doing business at the BSP.

o Shape

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 Vision and Mission

Vision
o 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.

The BSP Vision and Mission

Mission
o 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.

Characteristics of a Central Bank

Publicly-owned
Bank of currency issues and ultimate source
of money
Bankers bank
Custodian of the countrys reserves of
foreign currencies
Regulation of monetary and financial
activities

Functions and Operations

Objectives
o The BSPs primary objective is to maintain price

stability conducive to a balanced and sustainable

economic growth.
o The BSP also aims to promote and preserve monetary
stability and the convertibility of the national currency.

Functions and Operations

Responsibilities
o The BSP provides policy directions in the areas of

money, banking and credit.

o It supervises operations of banks and exercises
regulatory powers over non-bank financial institutions
with quasi-banking functions.

Functions and Operations

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.

Functions and Operations

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
foreseeable net demands for foreign currencies in order to
preserve the international stability and convertibility of
the Philippine peso.

Functions and Operations

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 Bangko Sentral
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.

The BSP's Organizational Structure

as of June 2009

The BSP's Organizational Structure

as of June 2009

Governance of the Bank

o The Monetary Board exercises the powers and

functions of the BSP, such as the conduct of

monetary policy and supervision of the
financial system.
o Its chairman is the BSP Governor, with five fulltime members from the private sector and one
member from the Cabinet.

The BSP's Organizational Structure

as of June 2009

Governance of the Bank

o 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.

The BSP's Organizational Structure

as of June 2009

Governance of the Bank

o A deputy governor heads each of the BSP's

operating sector as follows:

Monetary Stability Sector

formulation and implementation of the BSPs monetary

policy, including serving the banking needs of all banks
through accepting deposits, servicing withdrawals and
extending credit through the rediscounting facility

The BSP's Organizational Structure

as of June 2009

Governance of the Bank

o A deputy governor heads each of the BSP's

operating sector as follows:

Supervision and Examination Sector

enforces and monitors compliance to banking laws to
promote a sound and healthy banking system

Resource Management Sector

serves the human, financial and physical resource needs of
the BSP

Monetary Policy
The primary objective of BSP's monetary
policy is to promote a low and stable
inflation conducive to a balanced and
sustainable economic growth.
The adoption of inflation targeting
framework for monetary policy in January
2002 is aimed at achieving this objective.

Guiding Principles of Monetary

Administration
Domestic-Monetary Stabilization
o The Monetary Board shall endeavor to control any

expansion or contraction in monetary aggregates

which is prejudicial to the attainment or maintenance
of price stability.

International Monetary Stabilization

o The Bangko Sentral shall exercise its power to preserve

the international value of the peso and to maintain its

convertibility into other freely convertible currency
primarily for, although not necessarily limited to,
current payments of foreign trade and invisibles.