Activity Sheet 2.

2 in FM 201 BANKING AND FINANCIAL INSTITUTIONS

Name: __________________________________ Date: ____________________

Class Schedule: ___________________________

Instructions:

a. Answer what is ask comprehensively.

b. 2 points deductions for late submission; and additional 1 point deduction for everyday if

submitted from the 1st week after the specified time frame form your total scores/points.

1. Explain the mandates, roles and responsibilities of BSP through a diagram (10 pts.)

(My Answer)

BSP Mandates

The primary objective The Bangko

The Bangko
of the Bangko Sentral shall promote
Sentral shall oversee
Sentral is to maintain financial stability and
the payment and
price stability closely work with the
settlement systems in
conducive to a National Government,
the Philippines,
balanced and including, but not
including critical
sustainable growth of limited to, the
financial market
the economy and Department of Finance,
infrastructures, in
employment. It shall Securities and
order to promote sound
also promote and Exchange Commission,
and prudent practices
maintain monetary the Insurance
consistent with the
stability and the Commission, and the
maintenance of
convertibility of the Philippine Deposit
financial stability.
peso. Insurance Corporation.
 Roles of BSP

Price Stability Efficient Payments

Financial Stability
and Settlements

-BSP owns and operates the

Philippine Payment and
- Managing inflation and
Settlement System, or
price fluctuation at an
acceptable target levels that PhilPass.
would create a
-PhilPass is a real time gross
climate/environment
settlement system wherein
conducive to a balanced and
both processing and final
sustainable growth of the
settlement of fund transfer
economy.
instructions can take place
-BSP is uniquely qualified to continuously in real time.
promote price stability
because of its ability to
influence the amount of
money of the country,
thereby influencing the
prices of goods and services. -Formulating and - Liquidity management
implementing policy in
- Currency issue
areas of money, banking
and credit. -Lender of last resort

-Supervising and regulating - Financial supervision

banks and quasi-banks,
- Management of foreign
including their subsidiaries
currency reserves
and affiliates engaged in
allied activities. -Determination of
exchange rate policy
 Responsibilities of BSP

2. To supervise the
operations of the banks and
to exercise such regulatory
and examination powers as
provided under Republic Act
No. 11211 (The New Central 3. To exercise regulatory
Bank Act, as amended) and and examination powers
other pertinent laws over over money service
1. To provide policy
the quasi-banking businesses, credit
directions in the areas of
operations of non-bank
money, banking, and credit; granting businesses, and
financial institutions;
payment system
operators.
 Liquidity
Currency issue.
Management.

The BSP formulates and implements The BSP has the exclusive power to
monetary policy aimed at influencing issue the national currency. All notes
Responsibilities and coins issued by the BSP are fully
money supply consistent with its
Of guaranteed by the Government and
primary objective to maintain price
BSP are considered legal tender for all
stability.
private and public debts.

Lender of last Financial

resort. Supervision.

The BSP supervises banks

and exercises regulatory
The BSP extends discounts,
powers over non-bank
loans and advances to
institutions performing
banking institutions for
quasi-banking functions.
liquidity purposes.

Other activities.

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.
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.
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