1.
Financial Market
Transfer funds from those who have
excess funds to those who need
funds(voice over with illustration)
Investors link Borrowers (animation)
2. Since financial markets is a place where
securities are purchased or sold, securities
can be classified as money market
securities, capital market securities, and
derivative securities and now let`s focus on
money market securities (voice over with
animations)
3. Money Market (Illustration)
The money market is the arena in which
financial institutions make available to a
broad range opportunity to buy and sell
various forms of short-term securities.
(Voice over with animation)
4. Money Market securities like treasury bills,
federal funds, negotiable certificate of
deposits, commercial paper, repurchase
agreement and bankers` acceptances are
the short-term debts and securities sold on
the money markets and have maturities
ranging from one day to one year and are
extremely liquid. (voice over with
illustrations)
5. How financial market works in the
Philippines considering the current
pandemic? (title)
(-insert the bomb effect)
“Philippines becomes first country to shut
financial markets over COVID 19” (naa ni sa
youtube magkuha lang atleast 10-20 -Repurchase Agreement with the National
seconds sa clip) Government (NG). (for animation purposes
6. How does financial markets specifically the ako I attach diri ang file sa BSP para guide)
money market securities being utilized in
the Philippines considering the current
8. ”The BSP reassures the Filipino people of its
situation? (title)
commitment and readiness to deploy its full
“The Philippine stock exchange chief said he range of instruments to provide liquidity and
plans to reopen the $188 billion market ensure the efficient functioning of the domestic
signaling a quick resumption of trading after financial market. The BSP will continue to work
the country became the first to shut closely with market participants and other
financial markets in response to the relevant government agencies in monitoring the
widening coronavirus pandemic.” (voice situation and carrying out appropriate policy
over with animations) responses in a timely manner, in support of the
7. BSP announces extraordinary measures to National Government’s broader efforts to
support domestic liquidity(title) mitigate the adverse impact of the health crisis
“Along with the current pandemic which on the economy at large.” (Pwede ran dili I
greatly affects the economy and financial voice over para di consume sa time pwede rani I
systems, the developments have prompted quotation then with animations or illustrations)
monetary authorities around the world to
step in to cushion economic activity and
stabilize financial markets” (voice over with
animation)
“It was stated that, In the Philippines, the
Bangko Sentral ng Pilipinas has observed
some volatility in the domestic financial
market in recent weeks, as uncertainty over
the impact of the health crisis continues to
dampen market sentiment. By ensuring
sufficient liquidity in the financial system,
the BSP aims to assist our financial
intermediaries in responding to the needs
of Filipino households and businesses amid
these challenging times. These are the
following measures:
-Purchases of government securities (GS) in
the secondary market.
-Reduction in the Overnight Reverse
Repurchase (RRP) Volume offering).
BSP Announces Extraordinary Measures to Support Domestic Liquidity

The COVID-19 pandemic has had a sweeping impact on economies and financial systems around the world. The outlook for global economic growth has dimmed
considerably in Q1 2020, while turbulence in financial markets has constrained liquidity. These developments have prompted monetary authorities around the
world to step in to cushion economic activity and stabilize financial markets.

In the Philippines, the Bangko Sentral ng Pilipinas has observed some volatility in the domestic financial market in recent weeks, as uncertainty over the impact of
the health crisis continues to dampen market sentiment. While the BSP believes that the Philippine financial system remains sound with adequate capital and
liquidity buffers, we also recognize the need to shore up market confidence to ensure the proper functioning of the financial market and prevent serious
repercussions on the economy over the medium term.

Therefore, guided by its mandate as the country’s central monetary authority, and in accordance with the provisions of the New Central Bank Act, the BSP deems
it necessary to take extraordinary measures to complement the National Government’s broad-based health and fiscal programs in mitigating the impact of COVID-
19. By ensuring sufficient liquidity in the financial system, the BSP aims to assist our financial intermediaries in responding to the needs of Filipino households and
businesses amid these challenging times.

These measures include:

 Purchases of Government Securities (GS) in the Secondary Market. On 24 March 2020, the BSP opened a daily one-hour window between 9:30 – 10:30
AM within which it could purchase only selected series of highly traded and liquid GS from banks at market prices. Beginning 8 April 2020, the BSP shall
expand the range of eligible securities to cover all peso-denominated GS issuances. The measure is aimed at reassuring market participants of demand
for GS should they need to liquidate their holdings, thus encouraging participation in the GS auctions. The window will remain open between April and
June 2020, or until market conditions return to normal.
 Reduction in the Overnight Reverse Repurchase (RRP) Volume Offering. Beginning 8 April 2020, the BSP will also scale down its daily overnight RRP
volume offering as necessary depending on liquidity conditions to encourage counterparties to lend in the interbank market or re-channel their funds into
other assets such as GS or loans. 
 Repurchase Agreement with the National Government (NG). Under this repo agreement, the BSP shall purchase government securities from the Bureau
of the Treasury (BTr) under a repurchase agreement amounting to P300 billion. The term of the repo agreement shall be three (3) months from the
release of the proceeds to the BTr, upon which date the BTr buys back the government securities from the BSP for same amount. The Monetary Board
may extend the repurchase period for a maximum of three (3) more months upon due date, if conditions so warrant. In turn, the NG shall use the proceeds
to finance expenditures authorized in its annual appropriation, as deemed necessary to support programs to counter the impact of the COVID-19 outbreak
in the country.

These extraordinary measures complement earlier actions taken by the BSP to shore up market confidence and cushion domestic economic activity, including:

 the cumulative 75-basis-point reduction in the monetary policy rate since February 2020;
 the 200-basis-point decrease in the reserve requirement ratios of universal and commercial banks as well as non-bank financial institutions with quasi-
banking functions (NBQBs);
 the timely suspension of the term deposit facility auctions for certain tenors;
 the temporary reduction in the term spread on the peso rediscounting loans relative to the overnight lending rate to zero; and 
 various time-bound relaxation of various regulations pertaining to compliance reporting, calculation of penalties on required reserves, and single borrower
 limits.

The BSP reassures the Filipino people of its commitment and readiness to deploy its full range of instruments to provide liquidity and ensure the efficient
functioning of the domestic financial market. The BSP will continue to work closely with market participants and other relevant government agencies in monitoring
the situation and carrying out appropriate policy responses in a timely manner, in support of the National Government’s broader efforts to mitigate the adverse
impact of the health crisis on the economy at large.