Jaylin Perez

Danica Jane Ramos

Earl Marcel Rebultan
Janine Ashley Roque
BSAC 2-2

PRIMER ON BSP MEMORANDUM NO. M-2020-008

The memorandum talks about the action of Bangko Sentral ng Pilipinas on Coronavirus
(Covid-19) Pandemic. BSP recognizes the potential significant impact of the Corona Virus
Disease 2019 to the general public, including the individual and corporate clients and employees
of BSP supervised financial institutions (BSFIs). The pandemic has severely affected the
financial markets and the Philippine economy, especially the liquidity in the financial system and
the price stability. A rise in unemployment, significant reductions in income, and disruptions in
the transportation, manufacturing, and service industries are among the consequences of the
disease mitigation measures that have been implemented in the Philippines.
Recognizing the adverse effect of the pandemic, BSP Monetary Board approved the
granting of temporary regulatory and rediscounting relief measures to BSFIs. As shown in the
memorandum, the BSP continues to serve the nation’s economy considering the programs
concerning fiscal and health as well as providing ways of coping with the transactions held by
individuals, banking institutions, and the government. Consequently, the Bangko Sentral ng
Pilipinas indeed played its role as the values they proclaim are eminent with their actions as the
provided regulatory reliefs are reflected throughout the concerned and affected institutions and
individuals. Additionally, through this initiative, the current situations of everyone affected by
the global disease, the milestone in the decline of the movement in the economy, the complexity
of collecting and providing payments are being addressed gradually due to the grace period given
foe settlements of loans, a new way of the payment transaction, reduction of credit risk and
temporary reduction of minimum liquidity ratio.
It was good to note that the memorandum highlighted the adaptation of BSP to the new
economy. Adapting to change is one of the many characteristics that a financial institution must
possess. Moreover, the memorandum manifests goodwill. BSP does not only do their job, they
are willing to cope up with the current state of those who are around them.
Overall, the Bangko Sentral ng Pilipinas is seriously taking their role, continuously
recognizing growth, exploring ways of providing better transactions, navigating some changes in
the financial system due to Covid 19, but still and will always be committed to their role no
matter what the situation is.