Bangko Sentral ng Pilipinas

The BSP Vision

The BSP aims to be recognized globally as the monetary authority and primary financial system
supervisor that supports a strong economy and promotes a high quality of life for all Filipinos.

The BSP Mission

To promote and maintain price stability, a strong financial system, and a safe and efficient payments and
settlements system conducive to a sustainable and inclusive growth of the economy.

Overview of Functions and Operations

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.
 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.
 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.
Facilities
Within the complex of the BSP resides a numismatist's haven - the Museo ng Bangko Sentral ng
Pilipinas. Inaugurated on January 3, 1999, as part of the celebration of the 50 years of central banking in
the Philippines, the Museo showcases the Bank's collection of currencies.

Also located at the BSP Complex is the BSP Library which serves the research needs of the Bank officers
and staff. As a public service, however, its collection of BSP publications are made available to the public.

The New Central Bank Act (RA 7653)

CHAPTER I
ESTABLISHMENT AND ORGANIZATION OF THE
BANGKO SENTRAL NG PILIPINAS

ARTICLE I - CREATION, RESPONSIBILITIES AND CORPORATE POWERS OF THE BANGKO

SENTRAL

SECTION 1. Declaration of Policy. — The State shall maintain a central monetary authority that shall
function and operate as an independent and accountable body corporate in the discharge of its mandated
responsibilities concerning money, banking and credit. In line with this policy, and considering its unique
functions and responsibilities, the central monetary authority established under this Act, while being a
government-owned corporation, shall enjoy fiscal and administrative autonomy.

SECTION 2. Creation of the Bangko Sentral. — There is hereby established an independent central
monetary authority, which shall be a body corporate known as the Bangko Sentral ng Pilipinas, hereafter
referred to as the Bangko Sentral.

The BSP's Organizational Structure

as of 18 July 2018
The Logo

The new BSP logo is a perfect round shape in blue that features three gold stars and a stylized Philippine
eagle rendered in white strokes. These main elements are framed on the left side with the text inscription
“Bangko Sentral ng Pilipinas” underscored by a gold line drawn in half circle. The right side remains open,
signifying freedom, openness, and readiness of the BSP, as represented by the Philippine eagle, to soar
and fly toward its goal. Putting all these elements together is a solid blue background to signify stability.

Ref. http://www.bsp.gov.ph/about/org.asp

BSP to review inflation path

after 5.2% ‘setback’ in June
Published July 5, 2018 12:07pm
By JON VIKTOR D. CABUENAS, GMA News

The Bangko Sentral ng Pilipinas (BSP is set to review its inflation forecasts,
after prices of goods and services accelerated by 5.2 percent last month.

“The higher-than-expected June inflation outcome is a setback,” BSP

Governor Nestor Espenilla, Jr. told reporters on Thursday.

The Philippine Statistics Authority reported inflation came in at 5.2 percent in

June, the fastest in at least five years.

The June inflation breached the 4.3- to 5.1-percent the central bank had
predicted, and the 4.9-percent outlook of the Department of Finance.

Espenilla noted the central bank will take into account the latest inflation
figures and review their forecasts.

“We will review and update our situational assessment and forecast inflation
path. This will shape the strength and timing of our next monetary policy
response to firmly anchor inflation expectations,” he said.
“The BSP re-affirms its strong commitment to ensure that inflation returns to
within the 2- to 4-percent target range as soon as possible.”

While the BSP has retained its 2- to 4-percent target range for the full-year
2018, it expects inflation to settle at 4.5 percent this year—in line with
the revised forecast of the Development Budget Coordination Committee to
4.0 to 4.5 percent. —VDS, GMA News

Ref. https://www.gmanetwork.com/news/money/economy/659312/bsp-to-review-inflation-path-after-
5-2-setback-in-june/story/