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WHAT IS A PAYMENT SYSTEM?

A Payment System is defined as an arrangement that allows users to


transfer “money”. In simple terms, “money” is regarded as cash (i.e., notes and
coins issued by the government or central bank) and claims against credit
institutions in the form of deposits. The use of bank deposits to make payments
has become an important medium in most developed countries and to make a
payment, the payer must issue an instruction in the form of a paper-based
instrument (e.g. a check) or an electronic instruction (e.g. using a credit or plastic
card).

The effectiveness of payment activities is fully dependent on the


arrangements that facilitate fund transfers between members and it is through
these arrangements that constitute a “payment system”. Payment Systems
consist therefore of networks that link the members with existing rules and
procedures for the use of this infrastructure. A Payment System normally
requires the following:

• Standard methods of transmitting payment messages between members


• Agreed means of settling claims within the members/participants (normally
through the deposits of the members/participants with the central bank)
• Common operating procedures and rules (admission, fees, operating hours)

Payment Systems are vital part of the economic and financial


infrastructure. Their efficient functioning, allowing transactions to be completed
safely and on time, makes a key contribution to overall economic performance.
Payment Systems, however, can also involve significant exposures and risks for
members and it is for this reason that central banks have always taken into
account the design and operation of payment systems additional control features
to mitigate these risks.

WHY ARE PAYMENT SYSTEMS IMPORTANT?

a. Payment Systems allow safe and timely completion of transactions. The


various payment systems are normally used by companies to buy or sell
goods and services; individuals rely on them to receive their salaries and for
retail purchases; and the government depends on them to receive taxes and
pay benefits.

b. Payment Systems allow the customers of one bank to make payments to


other banks thereby minimizing the risks of fraud and erroneous payments to
illegitimate creditors.

c. Payment Systems are vital to the operation of financial markets as they are
used to settle the transactions in money market instruments, bonds, equities,
foreign exchange transactions, derivatives and other types of financial
instruments.

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WHAT ARE THE RISKS INVOLVED IN PAYMENT SYSTEMS?

The various risks in Payment Systems are as follows:

a. Credit Risk – the risk that the counter-party will not meet an obligation for
full value, either when due, or at any time thereafter and generally includes
both the risk of loss of unrealized gains on unsettled contracts with the
defaulting party and more importantly, the risk of loss of the whole value of
the transaction.

b. Liquidity Risk – the risk that the counter-party will not settle an obligation for
full value. This could adversely affect the expected liquidity position of the
payee and may force the payee to cover its cashflow shortage by funding
from other sources to meet its obligations to others.

c. Settlement Risk – the risk that the completion or settlement of individual


transactions or, more specifically, settlement of the interbank funds transfer
system as a whole, will not take place as expected. Settlement risk
comprises both credit and liquidity risks.

d. Operational Risk – the risk that hardware or software problems, or human


error or malicious attack will cause a system to breakdown or malfunction
giving rise to financial exposures and possible losses.

e. Legal risk – the risk that unexpected interpretation of the law or legal
uncertainty will leave the payment system or members with unforeseen
financial exposures and possible losses.

WHAT ARE THE MAJOR PAYMENT METHODS IN THE PHILIPPINES?

a. Check

Check is classified as a non-cash payment instruction given in paper


form by private individuals or banks, to be exchanged between banks
through the Electronic Check Clearing System (ECCS) of the Philippine
Clearing House Corporation (PCHC) for processing and settlement through
the demand deposit accounts (DDA) of banks and financial institutions that
are maintained with the BSP. Checks are commonly used by consumers for
bills and small value payments and for businesses for their regular payments
such as purchase of goods and services.

b. Credit Card

Credit cards are usually issued by the banks as part of their marketing
strategy to increase the number of their customer base and improve income
that can be generated from retail and consumer business. Credit card use is
no longer limited to the ordinary purchase of goods and services by the
cardholders. Banks have expanded its usage for other purposes such as
cash advance, easy installment plan for purchases, link-up to savings and
checking accounts of cardholders etc. to attract more customers. The most
common credit cards being used are the Visa, MasterCard, BanKard, BPI
Express Card, Unicard, Diners Card, American Express Card and cards
issued by internationally known financial companies/institutions.

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c. Debit Card

Debit Cards are also issued by banks and these are normally in the
form of Automatic Teller Machine Cards (ATMs) that allow cardholders to
access and charge their transactions against their deposit accounts with their
banks. The existing ATM networks (BancNet, MegaLink, ExpressNet) also
developed their own Point-of-Sale (POS) System to allow their cardholders
pay their purchases electronically through their ATMs for credit to the
retailer’s account.

d. Stored Value Card

This is commonly known as e-Cash and it is in the form of prepaid


cards that are single purpose instruments and non-reusable. The typical
examples of single purpose prepaid cards are the prepaid phone cards for
telephone/cellular companies, the Light Rail Transit Authority and Metro Rail
Transit Authority. A bank pioneered also the use of multi-purpose reloadable
e-Cash that can be used for cash withdrawal through the bank’s counter or
automated teller machines or payment of bills to the accredited
establishment of the e-Cash issuer.

e. Philippine Domestic-Dollar Transfer System (PDDTS)

This system allows online, real time gross settlement of domestic


interbank US Dollar transfer and third party account-to-account US Dollar
transfers. In addition, it provides a facility for online inquiry and settlement of
foreign exchange transactions, where the PDDTS participants enter
interbank US Dollar and Peso transfer instruction in a single screen. The US
Dollar leg is settled via PDDTS while the Peso leg is transmitted to the
Philippine Payments and Settlements System (PhilPaSS) for settlement by
the Bangko Sentral ng Pilipinas.

f. Electronic Peso Clearing and Settlement System (EPCS)

The Electronic Peso Clearing and Settlement System is an interbank


account-to-account fund transfer system that supports bulk, recurring, non-
time sensitive payment and collection transactions. This is considered an
efficient and cost-efficient means of transacting payments and collections
and considered as a robust alternative to check payments. EPCS is
operated by the Philippine Clearing House Corporation.

g. Philippine Payments and Settlements System (PhilPaSS)

The Philippine Payments and Settlements System or PhilPaSS is the


system name where both processing and final settlement of fund transfer
instructions can take place continuously (i.e., in real time). As it is a gross
settlement system, transfers are settled individually, that is, without netting
debits against credit. As it is a real time settlement system, the system
effects final settlement continuously rather than periodically at pre-specified
times provided that a sending bank has sufficient balances or credit. The
settlement process is based on real time transfer of central bank money.

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WHAT IS REAL TIME GROSS SETTLEMENT SYSTEM (RTGS)?

RTGS is an automated facility, normally run by a country’s central bank, to


effect high-value payment transactions between banks through the deposit
accounts of the banks that are maintained with the central bank.

WHY IS THERE A NEED FOR RTGS?

There is a need for RTGS for the following purposes:

a. Real time and immediate settlement of payments


b. Mitigation of settlement, credit and liquidity risks
c. Payments are irrevocable and final

WHO OWNS AND OPERATES PhilPaSS?

The BSP is the owner and operator of the RTGS system commonly known
as “PhilPaSS”, and it is likewise designated as the settlement bank or Central
Institution for the settlement of transactions that are processed through the
system.

As owner and operator of the PhilPaSS, the BSP is responsible for:

a. Providing, maintaining and upgrading the system including system hardware


and software.
b. Ensuring uninterrupted operations between the System and SWIFT (the
network provider) and adequate Continuity of Business Plans are in place
(COB).
c. Ensuring that adequate back-up files are available for continuous and
efficient operation of the system.

As settlement bank, the BSP through the system is responsible for:

a. Creating a Participant’s PhilPaSS account (DDA #2) in the system wherein


all PhilPaSS transactions and other bank transactions shall be posted during
the PhilPaSS business day.
b. Receiving and authenticating electronic fund transfer instructions from the
participants.
c. Checking if the paying bank has sufficient balances and posting the debit
entry in its DDA #2 and credit entry in the beneficiary bank’s DDA #2.
d. Providing feedback to the participants regarding their PhilPaSS transactions,
balances and queries.

WHAT WAS THE SYSTEM BEING USED BY THE BANKS/FINANCIAL


INSTITUTIONS FOR THEIR INTERBANK TRANSACTIONS PRIOR TO THE
IMPLEMENTATION OF PhilPaSS ON DECEMBER 12, 2002?

Prior to December 12, 2002, the banks/financial institutions were using


the Enhanced Multi-transaction Interbank Payment System (MIPS2) for their
interbank transactions. MIPS2 was an electronic net clearing system that was

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operated by the Bankers Association of the Philippines (BAP) and Philippine
Clearing House Corporation (PCHC) in coordination with the BSP. Both counter-
parties had to input their transactions through the MIPS terminal provided by
PCHC. PCHC in turn, verifies and authenticates the transactions prior to its
electronic transmission to the BSP for settlement. The status of the transactions
of the banks/financial institutions was being secured by the participants through
the reports from MIPS2 while the balances of their demand deposits were being
advised through an hourly electronic broadcast by the BSP/Comptrollership
Department. Participants under MIPS2 were subjected to admission fees and a
transaction fee of PhP120.00 which was being billed to the account of the debit
party for every interbank transaction.

WHO ARE THE PARTICIPANTS IN PhilPaSS?

The original participants under MIPS2 were considered as participants in


PhilPaSS when this was officially launched last December 12, 2002. In addition,
the BSP departments/offices/units that were directly involved in MIPS2’s
interbank transactions were automatically listed as participants in PhilPaSS. The
following are the participants in PhilPaSS:

i. BSP Payments and Settlements Office


ii. BSP Treasury Department
iii. BSP Provident Fund Office
iv. Thirty Five (35) commercial banks
v. Three (3) specialized banks
vi. Thirty eight (38) savings and thrift banks
vii. One (1) rural bank
viii. Ten (10) non-banks with quasi-banking facility (NBQB)

WHAT ARE THE SYSTEM COMPONENTS OF PhilPaSS?

a. LOGICA Clearing and Settlement System/Central Accounting System


(LCSS/CAS)

The LCSS/CAS is the main application in the system. Its basic


function is to process incoming SWIFT settlement instructions from
participants and prompt the accounting and recording of these transactions
to the participants’ DDA #2 with BSP.

b. SWIFT Network

The existing global communication network of SWIFT is a component


of the system that enables the participants to transmit their financial
transactions to their counterparties electronically. The participants are
required to enroll to SWIFT FIN Copy Service to allow them to transmit
directly their PhilPaSS transactions to BSP’s LCSS/CAS for processing and
settlement.

c. Data Communications

The existing data communications service provider (ORANGE


BUSINESS UK LTD) by SWIFT is also a major component of the system that

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serves as the communication link between the PhilPaSS and the
Participant’s Computer-Based Terminals (CBTs).

d. Philippine Payment System – Front-End System (PPS-FES)

For non-SWIFT member banks (thrift/savings banks, financial


institutions or non-banks with quasi-banking facility and rural banks), the
PPS-FES was developed by the BSP’s Information Technology,
Infrastructure and Operations Department (ITIOD) to enable these
participants to transmit their financial transactions to their counterparties
through the BSP’s LCSS/CAS.

The following diagram shows the basic system components of PhilPaSS:

PhilPaSS (RTGS) COMPONENTS

SWIFT USERS
SWIFT INTERBANK TRANSACTIONS
ALLIANCE
(9:00AM – 5:45PM)
BSP-CASH DEPT. SERVER
BEGINNING ELECTRONIC CASH WITHDRAWAL
CASH DEPOSITS
OF DAY (9:00AM – 12:00 NOON)

BALANCES NON-SWIFT USERS


(09:00AM) PPS INTERBANK TRANSACTIONS
FRONT- (90:00AM – 5:45PM)
END
BSP-DLC SYSTEM ELECTRONIC CASH WITHDRAWAL
CORE INTRA-DAY (RTGS)
LOANS GRANTS & FINANCIAL cFAS CENTRAL (9:00AM – 12:00 NOON)
REPAYMENTS ACCOUNTING TRANSACTIONS ACCOUNTIN MEGALINK
SYSTEM (cFAS) (9:00am – 5:45PM) G SYSTEM
ATM TRANSACTIONS
(CAS) (9:00AM – 11:00AM)

PSSC
BSP BRANCHES PAYMENT VS. PAYMENT
RTGS (9:00AM – 5:45PM)
REGIONAL CASH
TRANSACTIONS TRANSACTIONS THIRD EFTIS
(6:00PM) PARTY REVENUE COLLECTIONS
OPTION (9:00AM – 2:00PM)

PCHC
INTERNAL TRANS EPCS/ECCS
OTHER TRANS AFFECTING DDA (3:30pm – 4:45PM)

BUREAU OF THE TREASURY

AS/400 RS6000 DELIVERY VS. PAYMENT


- Telerate & PDEx
(9:00AM – 2:00PM)
B SP-TREASURY
BSP-TREASURY TRANSACTIONS
(9:00AM – 5:45PM)

WHAT IS SWIFT AND SWIFT FIN COPY?

SWIFT stands for Society for Worldwide Interbank Financial


Telecommunication. It is a secure, dedicated, global communication network that
supports a range of financial messaging services including FIN, its core store-
and-forward message processing service. The service provides financial
institutions with a wide range of message types for fast, secure transaction and
information processing and settlement.

FIN Copy is a message transmission service that has been developed to


assist financial communities in the creation of centralized systems such as
RTGS or Netting Systems. FIN messages are comprised of structured headers,
text and trailers, that conform to internationally accepted standards. Their
confidentiality, integrity, and authenticity are ensured by means of:

a. Security of transmission, delivery and message storage


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b. The encryption of user data within the system, both in transit and on system
storage devices
c. Message validation

WHAT ARE THE MECHANICS FOR THE IMPLEMENTATION OF SWIFT FIN


COPY?

The FIN Copy is implemented on a closed user group (CUG) basis and
consists of:

• Participating financial institutions (FIN Copy users)


• Central Institution (responsible for clearing, netting, settlement, etc.)

A CUG is a group of users who may, for certain types of message or


service, communicate among themselves, but not with users outside the CUG. A
CUG has certain defined characteristics. For example, a FIN Copy CUG may
define various characteristics such as types of messages that may be FIN-
copied among its members.

WHAT ARE THE STANDARD MESSAGE TYPES (MT) AVAILABLE FOR


PROCESSING UNDER SWIFT FIN COPY BY THE MEMBERS OF THE CUG?

The following are the standard message types that are available under
SWIFT FIN Copy to members of the CUG:

a. MT102 - Multiple customer credit transfer


b. MT103 - Single customer credit transfer
c. MT202 - General financial transfer
d. MT205 - Financial institution transfer execution
e. MT298 - Proprietary message type for various functions (i.e. cancellation
request, business priority change request, unsettled payment information)
f. MT920 - Account inquiry request
g. MT800 - Payment inquiry request
h. MT801 - Request for status of unsettled payments
i. MT999 - Free format message

WHAT IS THE SIGNIFICANCE OF SWIFT FIN COPY TO PhilPaSS?

SWIFT FIN Copy provides a simple, flexible and secure way for the BSP
to monitor and control financial transactions. FIN Copy uses the facilities of the
FIN messaging service, which it enhances by copying selected information to the
third party. The service may be used for the clearing, netting and settlement of
high value payments, securities and other financial transactions. It allows the
users to protect the origin and integrity of their message text by means of double
authentication. Standard FIN messages use an authentication mechanism based
on bilateral key exchange (BKE) between the sender and receiver. The second
message authentication mechanism is based on bilateral key exchange between
the Central Institution or Central Bank and the receiver. The two (2)
authentication processes are both automatic in SWIFT and PhilPaSS to ensure

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the security of the payment instruction messages that are transmitted by the
participants to the System.

There are two (2) copying modes under SWIFT FIN Copy: These are:

a. Y-Copy Mode

FIN Copy intercepts the FIN message and then copies some or all of the
information to a Central Institution or Central Bank.

FIN copy holds the message in temporary queue until the Central Bank
sends the appropriate authorization or rejection, after which either the message
is delivered to the receiver, or the sender receives an abort notification.

b. T-Copy Mode

FIN Copy copies to the Central Bank some or all of the contents of a FIN
message that has been delivered to the receiver. The Central Bank is
responsible for advising, by separate messages after the event, the sender and
the receiver of the status of the transaction.

The BSP is utilizing the FIN Y Copy mode of monitoring and controlling the
financial payment instructions of PhilPaSS that are being transmitted through the
SWIFT network.

The following diagram shows the basic flow of SWIFT messages that are
being sent by a member of SWIFT CUG through the SWIFT network:

SWIFT-CAPABLE BANKS in CUG


(CLOSED USER GROUP)
X. 25 Leased line

MT 012 or MT 019 Dial-up


MT 012 = Accepted Connection
MT 019 = Rejected

BANK A BANK B

MT 202 MT 202

S.W.I.F.T
Society for W orldwide Interbank
Financial Telecommunications

MT 096 MT 097

BSP-HO
SWIFT
ALLIANCE
SERVER

225
AVERAGE
T RANSACTIONS

IN TO CAS OUT OF CAS

CAS
CENTRAL
ACCOUNTING
SYSTEM

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WHAT ARE THE ROLES OF THE PARTICIPANTS AND THE BANKERS
ASSOCIATION OF THE PHILIPPINES (BAP), CHAMBER OF THRIFT BANKS
(CTB), INVESTMENT HOUSE ASSOCIATION OF THE PHILIPPINES (IHAP),
AND THE RURAL BANKERS ASSOCIATION OF THE PHILIPPINES (RBAP)
IN THE OPERATIONS OF PhilPaSS?

a. Participants

Participants shall be responsible for the upgrading, testing and


maintenance of their Computer Based Terminal (CBT) for the SWIFT FIN
Service Facility or PPS-FES to ensure uninterrupted linkage with the system and
shall ensure that a back-up computer site configuration is available to recover
the participant’s systems operations if its primary computer fails.

b. BAP, CTB, IHAP, and RBAP

The BAP, CTB, IHAP and RBAP were designated by their members to
negotiate and sign the agreement for PhilPaSS and as such, they shall be
responsible for ensuring that their member banks/financial institutions adhere
strictly to the terms and conditions of the PhilPaSS agreement and PhilPaSS
rules and regulations.

WHAT ARE THE REQUIREMENTS FOR ADMISSION OF NEW


PARTICIPANTS TO PhilPaSS?

a. All banks and non-banks with quasi-banking licenses are allowed to


participate in PhilPaSS.

b. An applicant is required to send its application for participation and a


certification of good membership standing from the association where the
institution is affiliated such as the BAP, CTB, IHAP, RBAP, or the Philippine
Clearing House Corporation.

c. The BSP’s Payments and Settlements Office shall advise the applicant on
the other PhilPaSS admission requirements immediately after its initial
review of the supporting documents submitted by the applicant.

If the application of a prospective participant is deferred due to


deficiencies in documentation/requirements, the applicant shall be directed to re-
submit its application after it has complied with the documentation requirements.

ARE THERE ADMISSION OR MEMBERSHIP FEES FOR PARTICIPATION IN


PhilPaSS?

Other than the qualifying requirements mentioned in the preceding


section, there are no admission or membership fees for participation in
PhilPaSS. A wide-scale use of PhilPaSS is encouraged to promote over-all
economic performance. Participants, however, pay transaction fees for using the
system.

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WHAT ARE THE SYSTEM RULES AND REGULATIONS GOVERNING
PhilPaSS?

The system rules and regulations governing PhilPaSS are embodied in


the Agreement for the Philippine Payments System via Real Time Gross
Settlement (PPS-RTGS) and the Rules and Regulations Governing the
Philippine Payments System via Real Time Gross Settlement that were signed
and approved individually by the PhilPaSS participants.

WHAT ARE THE TRANSACTIONS PROCESSED BY PhilPaSS?

The following transactions (with value dates equal to PhilPaSS business


day) are accepted for processing:

a. High-value interbank transactions among banks, non-bank financial


intermediaries performing quasi-banking functions (NBQBs)

b. Purchase and sale of government securities under outright and repurchase


agreements between and among banks and NBQBs and BSP in
connection with the latter’s Open Market Operations

c. Settlement of the peso leg of foreign currency transactions (Payment vs.


Payment System)

d. Settlement of government (NG) transactions (Delivery vs. Payment


System)

e. Customer payment instructions

f. Interbank settlement of Automated Teller Machines (ATM) transactions


within the members of ATM network provider and settlement of inter-
network transactions of ATM network providers.

g. Electronic Cash Withdrawals

h. Results of Check Clearing operations (by PCHC)

i. Revenue Collections (BIR and BOC taxes)

j. BSP-Treasury (domestic) transactions

k. e-Rediscounting Transactions

Future dated interbank transactions – payment instructions with value


dates greater than the current value date [up to four (4) calendar days] of the
system, are accepted but are warehoused and processed only on the date
indicated.

“Transactions with past value dates (value dates are less than the PhilPaSS
system date) are rejected for processing. Only transactions with current value
dates or future dated interbank transactions as defined above are accepted for
processing and settlement by PhilPaSS.

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WHAT ARE THE APPLICABLE TRANSACTION AND OTHER FEES OF
PhilPaSS?

Effective 01 February 2008, the revised fees (for PhilPaSS transactions,


exclusive of SWIFT related costs) are as follows:

New Fees
TYPES OF FEES MBR No.1403 (2007) IMPLEMENTATION
MBR No. 47 (2008) DATE
A. Transaction fees Transaction value Fee per Transaction

1. Interbank (Debits) Feb 1, 2008


2. Payment vs. Payment 1.00 - 100.00 FREE of Charge
Feb 1, 2008
(PVP) transactions –
PFX
3. Delivery vs. Payment 101.00 - 500,000 Php 5.00
Feb 1, 2008
(DVP) transactions – BTr-
GS / FIE / Equities
4. PCHC transactions (Win / 500,001 - 1,000,000 10.00
Feb 1, 2008
Loss)
5. ATM Network/MegaLink
Feb 1, 2008
transactions 1,000,001 - 39,999,999.99 Ad Valorem Fee =
6. Electronic Fund Transfer Trans. Value x
.00001 Feb 1, 2008
Instruction System
(EFTIS) (Round to nearest
Peso)
7. Customer 40,000,000 and Above 400.00
payments/transfers

8. Manual processing of P1,000.00 + Ad Valorem Fee (TV x .00001) Feb 1, 2008


inter-bank transactions: OR P5,000.00, whichever is LOWER
RTGS/EFTIS

B. Other Fees (NO MBR No. 1851(2003)


Change)

1. (Online) Transaction P100.00 per inquiry March 2004


inquiries
2. S O A Request (Printout) P100.00 per request March 2004

3. Intraday Liquidity Facility Pending Implementation of the New ILF System March 2004

4. Monthly Access/Connection Primary Back-up


Fee
Effective July 2008
• PCHC FREE FREE
FREE FREE (MBR No. 849 dated
• MegaLink
FREE FREE 2 July 2008)
• PSSC
5. Annual License fee
• Electronic Fund
Transfer Instruction March 2004
System (EFTIS) P10,000.00

• Phils. Payments Effective July 2008


System-Front End FREE (MBR No. 849 dated
2 July 2008)
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System (PPS-FES)
6. Administration Fees March 2004
• EFTIS/PPS/SWIFT
P2,000.00/user up to two (2) years
a. Registration new
users/profiles
b. Installation of P5,000.00/workstation
new/add’l (1st installation is Free of charge)
workstations (excl.
SWIFT)

IS THERE A LIMIT ON THE VALUE OR RESTRICTIONS ON TRANSACTIONS


THAT CAN BE ENTERED IN THE PhilPaSS?

There are no limits on the value or type of transactions that can be


entered in the PhilPaSS provided both counter-parties are maintaining Demand
Deposit Accounts in PhilPaSS and the value dates of the transaction are equal
to the current business date of PhilPaSS. If the transactions are future dated,
the value dates should not be more than four (4) calendar days than the current
value date of the system.

WHAT ARE THE IMPORTANT FEATURES OF PhilPaSS?

The PhilPaSS has the following salient and built-in security features in
processing its transactions:

a. Transaction Validation
All settlement and payment instructions by participants are subject to
verification to avoid possible duplication or unauthorized payments. The
following fields are normally validated prior to final settlement:

i. Transaction reference number


ii. Message type
iii. Value date
iv. Submitter’s network address (bank identifier code-
BIC)

b. Audit Trail

The system maintains sufficient information to resolve disputes regarding the


processing it had performed on behalf of the participants and the BSP. Its audit
records contain the time and date of events and identity of the participant-bank
who initiated the transaction.

c. Transaction Status Verification

Participants are able to verify the status of their settlement instructions


request by initiating the SWIFT or PPS-FES Payment Inquiry Request. The
transactions of the participants may have any of the following status:

i. Pending – payment had been on payment queue and settlement status for
the payment is still in abeyance.
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ii. Warehoused – when the payment is received and the value date is greater
that current value date. The System allows warehousing of payments of up
to four (4) calendar days.

iii. Rejected – transactions that are invalid due to abnormal business reasons
(i.e. back-valued transactions, duplicate payment instruction, instruction,
invalid payment instruction format).

iv. Settled – transactions that were fully accepted, processed and settled by the
system.

d. System Inquiries and Reports

Participants may issue the following requests/inquiries and secure various


reports through the system using applicable SWIFT/PPS-FES message types:

i. Request for cancellation of payment instruction


ii. Report on details of unsettled payments
iii. Account inquiry message (account balance, account movements details)
iv. Payment inquiry request (details of debit or credit entries to the account)
v. Request for status of unsettled payment

e. Payment Queuing Prioritization

Debit instructions that cannot be settled due to insufficient funds in the DDA
of the participants will be held on queue until the system has checked that
adequate funds are received by the DDA to allow settlement. Pending debit
instructions that are on queue will be settled based on business priority in the
order of arrival or in First-In-First-Out basis. The system will send an automatic
SWIFT advice for the details of the debit instruction that is causing the queue
and the participants may then decide whether there is a need to change the
business priority of the item in queue or cancel their other payment messages
that are also in queue. Participants may request the change in business
priorities of their other critical and urgent transactions through applicable
SWIFT/PPS-FES message to allow their settlement if there is sufficient balance
in their DDA.

f. Gridlock Resolution

The system has the capability to initiate gridlock resolution through its
algorithm method every thirty minutes whenever two (2) or more payment
instructions of participants remain unsettled. Payment queues that are not
settled in the initial gridlock resolution will be considered in the next processing
of unsettled payments which will be initiated by the System every thirty (30)
minutes to settle payments on queue during the PhilPaSS business day.

g. Intraday Liquidity Facility (ILF)

The system also provides the processing of ILF to ensure the continuous
settlement of interbank transactions and to avoid payment gridlock in the

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system. Any participant who wishes to avail itself of the ILF will have to obtain
the required documentation and approval from the Financial Accounting
Department and Treasury Department of the BSP in coordination with the
Bureau of Treasury (BTr).

Access procedures to BSP’s ILF System are provided for under a separate,
independent Memorandum of Agreement (MOA).

WHAT ARE THE OPERATING HOURS OF PhilPaSS?

Transactions in PhilPaSS are concluded by and among participants during


the following timelines:

TIMELINES ACTIVITY
Back Value Window
7:30 a.m. – 8:00 a.m. Posting/Settlement of PCHC AM Returns
8:01 a.m. – 8:45 a.m. BSP/Interbank window for Losses in AM Returns
9:00 a.m. RDDA balances (T-1) available on demand via EFTIS
Current Day’s Window
9:00 AM Start of PhilPaSS business hours
Beginning balances generated for PhilPaSS-RDDA
Regular window for same day interbank transactions
Posting/settlement of other RDDA transactions (i.e. BTr and
other BSP departments)
Following are the cut-off times set for particular transactions:
11:00am - ATM transactions
12:00 noon - BSP-ECWS
2:00 pm - BTr - GS DvP transactions
4:00 pm - PSH - eDVP/Repo transactions
5:45 pm - PCHC-EPCS/ECCS, BSP-RP/RRP, PSH-PvP,
Interbank Borrowing/Lending
4:45 PM – 5:45 PM Trading and settlement for end-of-day liquidity and reserve
positions
During the day, banks can inquire their balances in PhilPaSS
either through SWIFT/MT920 or PPS-FES Client
System/MT950.
5:46 PM - 6:00 PM PhilPaSS window for manual settlements, if any.
6:00 PM PhilPaSS Close of Business
Up to 6:15PM. Final copy of PhilPaSS-RDDA balance via MT950
PhilPaSS Close of business hours

In the event that a non-working day for government agencies but not for
banks is declared, the following policies will be observed by the BSP and
PhilPaSS participants:

a. If the declaration is received by the BSP prior to or on the same day as the
date covered by declaration:

14
Time of Receipt of Check Treasury Non
Announcement PhilPaSS Clearing Window Reserve Reserve
1. On an ordinary business Closed No Closed √
day prior to the date of settlement
effectivity
2. On a Saturday or
Sunday to take effect the
following Monday or on a
non-working holiday to take
effect the next business
day
a. Under good weather Open Normal Open √
conditions
b. Under bad weather Closed No Closed √
conditions, i.e., clearing
Typhoon signal no. 3
3. Before 9:00am on the Closed No Closed √
same date as effectivity clearing
4. After 9:00am on the Open Normal Suspended; √
same date as effectivity 1:00PM to be
(Day 1) resumed the
following day
at 9:01am to
9:45am
(Day 2) Open Normal Open √
1:00PM
5. In case of suspension of
work is extended to Day 2
a. Before 9:00am of Closed No Closed; Day √
Day 2 settlement 1
(Day 2) transactions
will be moved
to Day 3 (for
value Day 1)
(Day 3) Open Normal Resumed √
from 9:01-
9:45am (for
value Day 1)
Then, 4:45-
5:30 for same
day
transactions
b. After 9:00am of Day Open Normal Resumed √
2 from 9:01-
(Day 2) 9:45am (for
value Day 1),
Then, Day 2
transactions
suspended to
be resumed
the following
day from
9:01am to
9:45am
(Day 3) Open Normal Resumed √
from 9:01-
9:45am (for
value Day 2),
then, 4:45pm
to 5:30pm for
same day
transactions
6. In case the suspension if Open Normal Open √
work does not apply to

15
all gov’t offices (Manila
Day, Quezon City Day)

b. Since the prior day’s end-of-day procedures will be performed on the


following banking day from 9:00AM to 1:00PM, there will be a maximum four
(4) hour delay in the system opening of the next banking day (i.e., to start at
1:00PM instead of 9:00AM).

c. If work suspension is extended up to the next banking day, banks shall close,
but they may opt to conduct over-the-counter transactions. There will be no
clearing and it will be considered a Non-Reserve day. Transactions will be
valued the next banking day.

d. The BSP may suspend the BSP trading and settlement windows as the need
arises under abnormal situations.

e. Peso-US Dollar trading shall also be available unless jointly suspended by


the BSP and the BAP.

CAN A PARTICIPANT REQUEST THE REVERSAL OF ITS SETTLED


TRANSACTION IN CASE AN OMISSION OR ERROR WAS COMMITTED IN
THE TRANSMISSION OF ITS PAYMENT INSTRUCTION (i.e., INCORRECT
COUNTER-PARTY, OVERSTATED AMOUNT)?

All transactions settled in PhilPaSS are considered final and irrevocable.


Participants are therefore not allowed to request the reversal of their erroneous
transactions from the BSP Payments and Settlements Office. Participants may
request for the cancellation of their payment instruction through the standard
SWIFT/PPS-FES message format SMT200 if the payment instructions are still
unsettled and pending in the system.

IN THE EVENT THAT PhilPaSS IS INOPERABLE, HOW WILL THE


PARTICIPANTS TRANSMIT THEIR INTERBANK TRANSACTIONS TO THE
BSP FOR PROCESSING AND SETTLEMENT?

PhilPaSS has two (2) back-up systems, the local back-up facility within the
BSP Complex and the off-site location that can be made operational immediately
in the event that the primary site is inoperable. In case the two back-up systems
are also inoperable due to extraordinary circumstances, the BSP can activate its
existing Electronic Fund Transfer Instruction System (EFTIS) to allow the
participants to send their interbank instructions to BSP for processing and
settlement. All PhilPaSS participants will be duly advised through SWIFT and
PPS-FES message/advisories on the contingency plan(s) that the BSP will
initiate in case PhilPaSS’ primary site is encountering technical problems.

HOW CAN A PARTICIPANT TRANSMIT ITS PAYMENT INSTRUCTION TO


PhilPaSS IN CASE ITS SWIFT COMPUTER-BASED TERMINALS OR PPS-
FES ENCOUNTER CONNECTIVITY PROBLEM WITH PhilPaSS?

The participants will have to request the BSP Payments and Settlements
Office (PSO to activate the Electronic Fund Transfer Instruction System (EFTIS)
to enable the transmission of their payment instructions to PhilPaSS for
processing and settlement. If the EFTIS facility of the BSP or participant-banks
16
are also inoperable, the participants may resort to manual settlement by
accomplishing the COB Manual Settlement Form and transmit the same (via fax)
to BSP-PSO for processing and settlement. After processing and settlement, i.e.
signature-verification, encoding and posting, the BSP-PSO shall return (fax) the
sending participant-bank the COB Manual Settlement Form indicating that the
requested manual instruction settlement has been effected.

WHAT BSP DEPARTMENT CAN THE BANKS/FINANCIAL INSTITUTION


CONTACT FOR REFERRAL AND ASSISTANCE, FOR INQUIRIES RELATED
TO PhilPaSS?

The banks/financial institutions may contact the following departments/


units in BSP for any operational problem/issues/queries related to PhilPaSS:

For policy and operational matters

BSP Payments and Settlements Office


- Bella S. Santos 525-6650 bsantos@bsp.gov.ph
- Eleanor S. Turaray 302-4184 eturaray@bsp.gov.ph
523-3756

For payments/settlements and other inquiries

BSP Payments and Settlements Office - Help Desk


- Remedios C. Macapinlac 400-7071
- Ma. Victoria H. Francisco 400-7073
- Leticia A. Barroga 400-7022
400-7024
523-3756

For system/hardware and technical matters

Information Technology Sub-Sector


- Lillian S. Gelvezon 524-5015 lgelvezon@bsp.gov.ph

17
PhilPaSS PARTICIPANTS

SWIFT PARTICIPANTS

Bank SWIFT BIC Code Contact person Tel. No.


e-mail Address
ABN AMRO Bank ABNAPHMMXXX Rita C. Domingo 884-3936
rita.domingo@ph.abnamro.com
Allied Banking Corporation ABCMPHMMXXX Melita C. Tan 816-5541
mctan@alliedbank.com.ph

Asia United Bank Corporation AUBKPHMMXXX Isabelita M. Papa 687-6311


papaim@asiaunited.com.ph
Australia and New Zealand Bank ANZBPHMXXXX Lora E. Lopez 818-8117
lopezm@anz.com
Banco De Oro Universal Bank BNORPHMMXXX Ruby A. Chua 634-0478
rac@bdo.com.ph
BDO Private Bank BOPBPHMMXXX Oscar C. Pambid 848-6300 loc. 129
ocp@pb.bdo.com.ph
Ramona T. Torres 848-6300 loc. 123
rtt@pb.bdo.com.ph
Bangkok Bank Public Company Ltd BKKBPHMMXXX Prasarn Tuntasood 752-0871
bblm@bbl.com.ph
Bank of America NA Manila BOFAPH2XXXX Henry T. Pelaez 815-5600
henry.pelaez@bankofamerica.com
Bank of China Manila Branch BKCHPHMMXXX Dong Xiao Xia 885-0111 loc 105
bocmni-actg@bocgroup.com
Bank of Commerce PABIPHMMXXX Gilbert L. Guillermo 810-0616
GLGuillermo@bankcom.com.ph
Bank of the Philippine Islands BOPIPHMMTRY Corazon S. Tumbocon 816-9188
cstumbocon@bpi.com.ph
Bank of Tokyo Mitsubishi Ltd. BOTKPHMMXXX Julieta D. Taopo 886-7371 loc 401
juliet_taopo@ph.mufg.jp
Ludivina T. Almonte 886-7415
BSP Payments and Settlements PHCBPHMDXXX Bella S. Santos 525-6650
Office bsantos@bsp.gov.ph
Eleanor S. Turaray 302-4184
eturaray@bsp.gov.ph
Chemical Bank Mla Branch JP CHASPHMMXXX Mamerto R. Natividad 878-1169
Morgan
Edwin C. Salvador mert.r.natividad@jpmorgan.com
edwin.salvador@jpmorgan.com
China Banking Corporation CHBKPHMMXXX Wilfredo L. Sy 247-5353
wlsy@chinabank.ph
David Andrew P. 885-5207
Valdellon dapvaldellon@chinabank.ph
ChinaTrust Phil Commercial Bank CTCBPHMMXXX Oliver D. Jimeno 848-7156
oliver.jimeno@chinatrust.com.ph
Citibank Cash Department CITIPHMXPRA Paul Robert Y. Murga 894-7142
bob.murga@citi.com
Citibank NA Manila Branch CITIPHMXXXX Leo G. Montes 894-7150
Joanna S. Paraiso leo.montes@citi.com
tricie.paraiso@citi.com
CitiBank Treasury Unit CITIPHMXTSU Vivien I. Lugo 894-7340
vivien.lugo@citi.com
Gabriel R. Tomas 894-7451
gabby.tomas@citi.com
Deutsche Bank AG DEUTPHMMXXX Wilfredo E. Trinidad 894-6845
wilfredo.trinidad@db.com
Development Bank of the DBPHPHMMXXX Gerardo K. Galvey 867-3184
Philippines gkgalvey@devbankphil.com.ph

18
East West Banking Corporation EWBCPHMMXXX Martin B. Ordoñez 830-8992
mbordonez@eastwestbanker.com
Export and Industry Bank EAIBPHMMXXX Rodil S. Eslava (Treasury) 878-0417
rseslava@exportbank.com.ph
Marites P. Ong (Trade &
878-0506
Remittance)
mpong@exportbank.com.ph
Hong Kong and Shanghai Bank HSBCPHMMXXX Kim S. Marcelo 830-5265
Jun C. Santos kimmarcelo@hsbc.com.ph
ING Bank NV INGBPHMMXXX 479-8777
Efren Reyes, Jr. efren.reyes@asia.ing.com
Benjamin A. Rodriguez 479-8828
banjo.rodriguez@asia.ing.com
Mega International Comm Bank ICBCPHMMXXX James Th Ho 811-5807
Co. Ltd.
icbcphmm@infor.com.ph
Korea Exchange Bank KOEXPHMMXXX Ma. Teresa T. Uy 848-0101 loc 207
koexbank@eastern.com.ph
Land Bank of the Philippines TLBPPHMMXXX 405-7528
Merceditas N. Oliva moliva@mail.landbank.com
Cristie Corazon A. 551-2200 loc. 2721
Villanueva cillanueva@mail.landbank.com
Maybank Philippines Incorporated MBBEPHMMXXX Carmen C. Tanquilut 521-6177 ; 404-2859
mctanquilut@maybank.com.ph
Metropolitan Bank & Trust Co. MBTCPHMMXXX Dennis G. Suico 857-5376
dennis.suico@metrobank.com.ph
Mizuho Corporate Bank MHCBPHMMXXX Shigeo Saito 860-3500
undisclosed
Philippine Bank of Communications CPHIPHMMXXX Angel M. Corpus 893-1439
amcorpus@pbcom.com.ph
Philippine National Bank PNBMPHMMTOD Teresita S. Cruz 831-3257
cruzts@pnb.com.ph
Philippine Veterans Bank PHVBPHMMXXX Joselito R.G. Nazario 751-8590
jgnazario@veteransbank.com.ph
Philtrust Bank PHTBPHMMXXX Antonio H. Ozaeta 524-9061
ptc@philtrustbank.com
Rizal Commercial Banking Corp. RCBCPHMMXXX Aida N. Ramirez 894-9036
Sylvia S. Arienzano anramirez@rcbc.com
Security Bank and Trust Corp. SETCPHMMXXX Belen W. Au 888-7329
bau@securitybank.com.ph
Standard Chartered Bank SCBLPHMMXXX Seow Pang 878-2875
ng.seow-
pang@.standardchartered.com
Union Bank of the Philippines UBPHPHMMXXX Mardonio C. Cervantes 638-0323
junc@mail.unionbankph.com

United Coconut Planters Bank UCPBPHMMXXX Arnel A. Valles 811-9303


aavalles@ucpb.com
Elzeber O. Murallos 811-9316
United Overseas Bank Philippines eomurallos@ucpb.com
UOVBPHMMXXX
David C. E. Goh 6700-8686

NON- SWIFT PARTICIPANTS

Bank NON-SWIFT BIC Contact person Tel. No.


Code
e-mail Address
Al Amanah Islamic Bank ALAMPHM1XXX Panga P. Ali 816-4259
al-amanah@pldtdsl.net

American Express Bank AMEXPHM1XXX Manuela B. Palma 840-6705


Philippines manuela.b.palma@aexp.com
Equicom Savings Bank ESBBPHM1XXX Carlos T. Auyong 815-1049 loc.118
anchorbank@globelines.com.ph

19
Asiatrust Development Bank ASDVPHM1XXX 924-5685 / 924-5639
Maria Patricia L. Salcedo mlsalcedo@asiatrustbank.com
Carolyn R. Corro tpu@asiatrustbank.com
Banco Filipino SMB FIAOPHM1XXX Teresita J. Dizon 752-3938/ 818-5151 loc .503
tjdizon@bancofilipino.com
Bank One Savings & Trust Corp. ONSTPHM1XXX Ma. Cristina L. Garcia 713-6616
bankone_tsy@tri-isys.com
BPI Direct Savings Bank BPDIPHM1XXX Raul D. Dimayuga 845-5304
rddimayuga@bpi.com.ph
BPI Family Savings Bank BPFFPHM1XXX Lucinda M. Peralta 754-6743
lmperalta@bpi.com.ph
Centennial Savings Bank Inc. CNSVPHM1XXX Soledad I. Guevarra 637-0316
guevarrasoledad@yahoo.com
City Savings Bank CTSBPHM1XXX Linda Flor P. D. (032)412-1747
Hortezano lhortezano@citysavings.com.ph
Citystate Savings Bank Inc. CTYSPHM1XXX Michael B. Chong 637-4199
mbchong@citystatesavings.com
Equitable Savings Bank Inc. EQSVPHM1XXX Henry S. Santos 702-6850
santos.henry@bdo.com.ph
First Consolidated Bank Inc. FIOOPHM1XXX Sereno S. Sarabia (038)411-5045
rss@greendot.com.ph
GSIS Family Bank GSISPHM1XXX Linell S. Alvero 706-0456
ls_alvero@gsisfb.com
HSBC Savings Bank Inc. HSBSPHM1XXX Kim S. Marcelo 830-5265
kimmarcelo@hsbc.com.ph
Citibank Savings Inc. CSINPHM1XXX 995-9216
Vincent E. Cruz vincent.cruz@citi.com
423-6654
Rebecca A. San Agustin
becca.sanagustin@citi.com
Isla Bank Inc ISTHPHM1XXX Elsie R. Peñol 840-4014
erpenol@islabank.com
G.E. Money Bank GEMBPHM1XXX Arlene Joan T. Agustin 777-8686
arlene.agustin@ge.com
LBC Development Bank LBCDPHM1XXX 899-7621
Ofelia F. Cuevas ofie.cuevas@lbcbank.ph
Arlan T. Jurado arlan.jurado@lbcbank.ph
Luzon Development Bank LUDVPHM1XXX Tita O. Isleta 896-2655 / (049)5313700
ltoisleta@luzondevbank.com.ph
Malayan Bank SMB MAARPHM1XXX Ma. Lourdes A. Morales 840-1811
treasury@malayanbank.com.ph
China Bank Savings, Inc MABCPHM1XXX Rafael V. Acoba 864-5067 / 864-5068
(formerly Manilla Banking 751-6000 loc 7101
Corporation) rvacoba@m anilabank.com
Merchant Savings and LA, Inc. MRCBPHM1XXX Marilyn F. Suarez 817-1657 / 818-4315
babys@pldtdsl.net
Optimum Development Bank OPDBPHM1XXX Mary Anne B. Antazo 474-7438
mbantazo@optimum.com.ph
AIG Philam Savings Bank inc. PHSAPHM1XXX Liberty P. Santos 813-9881
liberty-p.santos@aig.com
Philippine Business Bank PPBUPHM1XXX Alice P. Rodil 363-3333 loc.2004
rodil_ap@pbb.com.ph
Philippine Postal SB PHPSPHM1XXX Reynaldo C. Eustaquio 527-9570
postalbank.treasury@gmail.com
Philippine Savings Bank PHLSPHM1XXX Jay S. Velasco 885-8367
jsvelaso@psbank.com.ph
Planters Development Bank PLDEPHM1XXX Herman C. Salazar 840-2419
hcsalazar@plantersbank.com.ph
Premiere Development Bank PRDEPHM1XXX Anna Breva Torres 852-0544
abtorres@premierebank.com.ph
Queen City Dev Bank QCDFPHM1XXX Alicia G. Sangrador (033)336-8052/53/54/56 loc 119/120
(033)336-8055
cag@queenbank.com.ph

20
RCBC Savings Bank Inc. RCSBPHM1XXX 894-9000 loc 2347
Jo-Anne C. Chan jcchan@rcbcsavings.com
Ma. Dorothy D. Mendoza ddmendoza@rcbcsavings.com
Rosemarie B. Maquiling maquiling@rcbcsavings.com
Real Bank Inc RLBKPHM1XXX Raquel T. Cabawatan 927-4174
rtcabawatan@realbank.com.ph
Robinsons SB Corp RBNVPHM1XXX Sylvia M. Herrera 702-9500 loc. 239
sylvia.herrera@robinsonsbank.com.ph
Sterling Bank of Asia, Inc. SBAIPHM1XXX Joseph T. Sulit 893-9128 /817-6168 loc 1007

jtsulit@sterlingbankasia.com
Tong Yang Savings Bank Inc. TYBKPHM1XXX Belen E. Asuncion 845-3837
845-3838 loc.303
beasuncion@yahoo.com
belena@tongyang.com.ph
UCPB Savings Bank UCSVPHM1XXX Noel C. Madridejos 811-9086
ncmadridejos@ucpb.com
868-8167
World Partners Bank WRDPPHM1XXX Teodencia S. Ratio tsratio@worldpartners.com.ph

RB

One Network Bank NWRBPHM1XXX Alex V. Buenaventura (082)234-3631


onrbi@onenetworkbank.com.ph

NBQBs

AB Capital and Inv. Corp. CAVPPHM1XXX Ricardo E. Enriquez 898-7559


reenriquez@abcapital.com.ph
BPI Capital Corp BPAPPHM1XXX Teodoro K. Limcaoco 816-9612
tklimcaoco@bpi.com.ph
BPI Leasing Corp BPLIPHM1XXX Samuel C. Tang 816-9758
sctang@bpi.com.ph
First Malayan Leasing & Fin. FMLFPHM1XXX Irma E. Japson 810-9668 loc 121
iejapson@malayanleasing.com
First Metro Investment Corp. FMICPHM1XXX Danilo G. Olondriz 243-3058
dgo@firstmetro.com.ph
Multinational Inv. Bancorp. MUIAPHM1XXX Evelyn D. Katigbak 811-0095
operations@mib.com.ph
RCBC Capital Corp. RCCOPHM1XXX Ruth B. Gutierrez 845-3406
rbgutierrez@rcbc.com
State Investment Trust Inc. STIVPHM1XXX Ma. Luisa O. Bongat 242-6888 / 242-1140
stateinc@info.com.ph
Philippine Depository & Trust Cop. PDTCPHM1XXX Teresa N. Napilay 884-5034
tere_napilay@pds.com.ph
Philippine Commercial Capital Inc. PCCIPHM1XXX Merceditas SJ Regaspi 813-3423 / 815-0628 loc. 227
fsg@pccigroup.com.ph

OTHER BSP OFFICES

CB Housing Fund CBPHPHM1XXX Victor G. Garlitos 525-0765


vgarlitos@bsp.gov.ph
CB Provident Fund CBPFPHM1XXX -do- -do-
CB Car Plan Fund CBCPPHMIXXX -do- -do-
Bureau of the Treasury Eduardo S. Mendiola 527-3183; 522-8122 loc 204
esmendiola@treasury.gov.ph
Philippine Clearing House Eduardo J. Katigbak, Jr. 886-1348
Corporation ed.katigbak@pchc.com.ph
Philippine Securities Settlement Cornelia C. Dagdag 884-5060
Corporation (PSSC) nellie_dagdag@pds.com.ph
Megalink Jennifer M. Tantan 892-1046
jmt@megalink.ph

21
REFERENCES

1. Agreement for the Philippines Payment System Via Real Time Gross
Settlement (PPS-RTGS)
2. Bank of England - Oversight of Payment Systems (November 2000)
3. Bank of England - Settlement Accounts (November 2002)
4. Bank for International Settlements - Committee on Payment and Settlement
Systems – Core Principles for Systemically Important Payment Systems
5. Rules and Regulations Governing the Philippines Payments System Via Real
Time Gross Settlement (PhilPaSS)
6. SWIFT FIN Copy Service Description (March 2000)
7. The Philippine Payment System: Efficiency and Implications for the Conduct
of Monetary Policy by Mario Lamberte (Discussion paper Series No. 2001-
20)

BSP VISION

The BSP, imbued with the values of


integrity, excellence and patriotism, 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 MISSION

The BSP is committed to promote and


maintain price stability and provide pro-active
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.

22