Functions of BSP

1. The Money Manager

2. The Supplier of Money
3. The Banker’s Bank
4. The supervisor of all banks
5. The main bank of the Government

Roles of BSP
The BSP performs the following role in the payments and settlements system:

1. Operator of the real time gross settlement system known as PhilPaSS

2. Provider of credit facilities to banks as a lender of last resort
As payment systems affect the daily demand for liquidity of banks/financial institutions
and may therefore affect the level of money market interest rates, the BSP, as a lender
of last resort, provides the following liquidity tools to PhilPaSS participants:

 Intraday Liquidity Facility (ILF) – a fully collateralized facility established to

maintain the smooth and efficient operation of the payments system in order to
avoid interbank payments gridlock in the settlement process within PhilPaSS
business hours.
 Overdraft Credit Line (OCL) – another collateralized facility which aims to assist
bank experiencing unexpected or higher than usual volume of inward check
transactions. The governing policies and procedures are provided under BSP
Circular 681 in order to provide additional liquidity for banks encountering liquidity
problems due to check clearing losses as well as protect the BSP against
settlement exposures.
3. Overseer of the payments and settlements system
4. User of its own RTGS system
5. Initiate changes/reforms for the payments system

611 TREASURY OPERATIONS

Section 4 of R.A. No. 8791 or the General Banking Law of 2000, recognizes the
authority of the Bangko Sentral to issue rules of conduct and establish standards of
operation for its supervised financial institutions. These regulations, which cover the
governance and operation of the trading function, among others, are aligned with the
thrust of the Bangko Sentral to ensure that the activities of BSFIs are undertaken with
prudence and integrity, and that these are supported by commensurate risk
management systems and internal controls.

https://morb.bsp.gov.ph/611-treasury-operations/
https://www.bsp.gov.ph/Pages/PAYMENTS%20AND%20SETTLEMENTS_deletethis/
RolesOfTheBSP.aspx
https://www.coursehero.com/file/50362671/Roles-of-BSPpptx/