What is Bangko

Sentral ng Pilipinas
 BSP plays a crucial role in ensuring economic
and financial stability. BSP conducts monetary
policy to achieve low and stable inflation. In the
wake of the global financial crisis, central banks
have expanded their toolkits to deal with risks
to financial stability and to manage volatile
exchange rates.
Economic and financial stability is largely
dependent on central banks. In order to
achieve low and steady inflation, BSP
implements monetary policy. Following the
global financial crisis, central banks have added
more tools to their arsenals to address threats
to financial stability and control fluctuating
exchange rates.
History
 BSP was established on 3rd of
July 1993 pursuant to the
provisions of the 1987 Philippine
Constitution and the New
Central Bank Act of 1993. The
BSP took over from the Bangko
Sentral ng pilipinas , which was
established on 3rd January 1949,
as the country’s central
monetary authority.
 What is the role of
Bangko Sentral ng
Pilipinas in the financial
system?
 The role that Bangko Sentral ng Pilipinas plays
in the financial system and their main
responsibility is to formulate and implement
policy in the areas of money, banking and credit
with the primary objective of preserving price
stability. Price stability refers to a condition of
low and stable inflation

With the primary goal of maintaining price

stability, the BSP's principal duty is to develop
and carry out policy in the areas of money,
banking, and credit. Low and stable inflation is
referred to as a situation of price stability.
 The role that Bangko Sentral ng Pilipinas plays in
the financial system and their main responsibility is
to formulate and implement policy in the areas of
money, banking and credit with the primary
objective of preserving price stability. Price stability
refers to a condition of low and stable inflation

With the primary goal of maintaining price stability,

the BSP's principal duty is to develop and carry out
policy in the areas of money, banking, and credit.
Low and stable inflation is referred to as a situation
of price stability.
INFLATION IS PROJECTED TO REMAIN
ABOVE THE TARGET RANGE UNTIL Q2
2023 BUT WILL RETURN TO WITHIN
THE TARGET RANGE BY Q3 2023.
HOWEVER, FACTORS THAT COULD
PUSH INFLATION HIGHER IN 2022
AND 2023 DOMINATE. THESE
INCLUDE A SHORTAGE IN DOMESTIC
FISH SUPPLY, A SHARP INCREASE IN
THE PRICE OF SUGAR, AS WELL AS
PENDING PETITIONS FOR TRANSPORT
FARE INCREASES.
 Interest rate
The BSP decided to raise the key
policy rate by 50 basis points to 3.75%.
This further action is meant to anchor
inflation expectations and avoid a
breach in the 2%-4% inflation target
range in 2023.
 Monetary Operations
Monetary operations refer to the
implementation of monetary policy. To ensure
that the monetary policy decision is transmitted

to the financial market and the economy in

general, the BSP uses its suite of monetary

instruments to influence the underlying demand

and supply conditions for central bank money

 Systemic Risk Financial
Management Supervision

Stability” is a
The promotion of “Financial

The Bangko Sentral has

formal mandate that is uniquely ascribed to supervision over the operations
the Bangko Sentral ng Pilipinas (BSP). This
of banks and exercises such
is provided for in the amended BSP Charter
(Republic Act No. 11211) which was signed regulatory powers as provided
by President Duterte in February 2019. in the New Central Bank Act
and other pertinent laws over
The objective of “Financial Stability” is to the operations of finance
enhance the resilience of the financial companies and non-bank
system, in its totality and in its components,
from shocks. This is done by managing financial institutions performing
systemic risks that could affect the quasi-banking functions.
financial system so that finance continues
to be a value proposition to consumers in
normal times while remaining resilient when
disruptions do arise. This is the overarching
global norm in financial system oversight.
 Payments and Settlements

Payment systems are essential to the effective functioning of

financial systems worldwide. They provide the channels through
which funds are transferred among banks and other institutions to
discharge payment obligations arising from economic and financial
transactions across the entire economy. An efficient, secure and
reliable payment system reduces the cost of exchanging goods and
services, and it is an essential tool for the effective implementation
of monetary policy, and the smooth functioning of money and
capital markets. It is this key role played by payment and settlement
system (PSS) in the smooth functioning of an economy in general
and its financial and monetary system in particular that gives the
central bank (CB) a strong incentive for ensuring that an effective,
reliable and secure payment and settlement system is in place.

CURRENCY
MANAGEMENT
The BSP has the exclusive power and authority to issue the national
currency. BSP’s notes and coins are issued against, and in amounts not
exceeding, the assets of the BSP. 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.

INCLUSIVE
FINANCE
In line with its strategic mandate to promote broad and
convenient access to high quality financial services and consider
the interest of the general public, the BSP undertakes various
programs and policy initiatives aimed at enhancing financial
inclusion, financial education, and consumer empowerment.
LOANS AND INTERNATIONA
CREDIT L RESERVES
OPERATIONS MANAGEMENT

The BSP extends The BSP maintains a

discounts, loans and healthy level of
advances to banking
international
institutions in order to
influence the volume of
reserves to provide
credit consistent with liquidity support in
objective of price times of volatility in
stability and the exchange rate
maintenance of financial and balance of
stability. It also grants
payments.
loans or advances to
banking institutions in
precarious financial
condition or under
serious financial
pressures, subject to
certain conditions.

 INTERNATIONAL
INTERNATIONAL
ECONOMIC
OPERATIONS
COOPERATION
The BSP’s mandate on The BSP’s proactive
international operations engagement in various
under the purview of the regional and
International Operations international fora
Department is to support significantly contributed
the promotion and to domestic policy
maintenance of price formulation; assured
stability, external partners through
sustainability, and the established crisis
integrity and value of the prevention safety nets;
Philippine peso through broadened
the effective management opportunities offered by
of external debt, foreign financial integration and
investments and other cooperation
foreign exchange (FX) agreements; and raised
transactions. skills and knowledge
through capacity
building initiatives.
 ECONOMIC
EDUCATION
The BSP’s Economic Education Portal provides
the general public a guided access on the
BSP’s collection of information on economic
education for them to better understand and
appreciate the role of the BSP, as the
country’s central bank, in the Philippine
economy. As the portal strategically presents
the BSP’s available learning materials, it aims
to develop and strengthen the public’s
knowledge on economic concepts that could
eventually guide them in making sound
economic and financial decisions.
Mandate, Functions &
Responsibilities

Of
Bangko Sentral
ng Pilipinas
Monetary Policy Report
The Monetary Policy Report (MPR). It

replaces the quarterly publication of the

Inflation Report and serves as the
flagship BSP publication on monetary
policy. The MPR provides the public a
detailed view of the BSP’s forecasts as
well as guidance on the likely direction
of monetary policy over the near term.
Contribution of Bangko Sentral
ng Pilipinas in the Philippine
Economy
 Bangko Sentral ng Pilipinas
primary objective is to maintain
price stability conducive to a
balanced and sustainable growth of
the economy and employment. It
shall also promote and maintain
monetary stability and the
convertibility of the peso.
 The Bangko Sentral also promote financial stability and will closely work with the
National Government, including, but not limited to, the Department of Finance,
Securities and Exchange Commission, the Insurance Commission, and the Philippine
Deposit Insurance Corporation.

 Therefore to conclude the role of BSP holds the responsibility of

managing banks all around the philippines it oversees the
payment and settlement systems in the Philippines, including
critical financial market infrastructures, in order to promote
sound and prudent practices consistent with the maintenance of
financial stability. In the attainment of its objectives, the Bangko
Sentral will promote broad and convenient access to high quality
financial services and consider the interest of the general public.
JOANNE MARK NIKKI JOHN CALVIN NIANA AURA
ALBOS KENNETH YSABELLE MENDOZA VILLANUEVA
CARCENA LOPEZ