“3rd Pillar of Central Banking”

Presented by:
Veverly B. Biendima.
Presented To:
Ma’am Jennifer Balido.
 “ Efficient payments and
settlements system ” through
operation of real time gross
settlement system.
What is the national payments and
settlement system?

 Includes the country’s

entire matrix of
institutional and
infrastructure arrangements
and processes through which
money is transferred from
one party to another.
 Makes the transfer of funds
between two parties easier.
What is the role of BSP?

 Is the owner and operator

of the Philippine payments
and settlements system “
PhilPaSS ”, a real time
gross settlement system
where settlement is done
thru the member bank’s
demand deposit account
maintained by the BSP.
“Payment and Settlement
Systems”
Payments systems are essential
to the effective functioning of
financial systems worldwide.
They provide the channels
through which funds are
transferred among banks and
other institutions to discharge
payment obligations arising
from economic and financial
transactions across the entire
economy.
 An efficient, secure and
reliable payment system
reduces the cost of exchanging
goods and services, and it is
an essential tool for the for
the effective.
 Implementation of monetary
policy, and the smooth
functioning of money and
capital markets. It is the key
role played by payment and
settlement systems in smooth
functioning of money and
capital markets.
 It is the key role played by
Payment and settlement systems
in smooth functioning of an
economy in general and its
financial and monetary system
in particular that gives the
central bank a strong incentive
for ensuring that an effective,
reliable and secure payment and
settlement system is in place.
 In the Philippines, the BSP
takes the lead in promoting an
efficient payments and
settlements system by providing
the necessary infrastructure
through the operations of the
Philippine Real Time Gross
Settlement System or the
“PhilPaSS”.
 BSP, through their payments and
settlement system enables people to make
safe, timely and accurate settlements of
financial transactions. Efficient payment
systems are important because they allow
the safe and timely completion of big
ticket transactions. These big tickets
includes Interbank loan transactions,
purchase and sale of government
securities, foreign currency
transactions, and interbank settlements
of ATM transactions. Undoubtedly, the
payments and settlements system plays a
crucial role in the Philippine economy.
 “Roles of the BSP in Payment and
Settlement Systems”

Operator of the real time gross

settlement system known as PhilPaSS, it
serves as the payment system operator
responsible for the operation and
maintenance of PhilPaSS and its
critical components. It ensures that
the operation of PhilPaSS is continous,
safe and efficient so that time
critical payments are completed as
expected to facilitate and enhance
economic processes, manage risks, and
absorb shocks in order to promote
financial stability.
 Provider of credit facilities to banks
as a lender of last resort, As payment
systems affect the daily demand for
liquidity of banks/financial
institutions and may therefore affect
the level of money market interest
rates.
Overseer of the payments and
settlements system, the BSP through the
payments Systems Oversight Department
of the Supervision and examination
Sector, oversees the payment systems in
the country to ensure safeguards are in
place to mitigate systemic risks
arising from settlement, credit and
liquidity risks of payments and
settlement systems participants.
  The BSP, through its different
departments, also make use of the
payments and settlements system for
the settlement of its own
transactions with its stakeholders
such as the automated collection and
settlement of Supervision and
examination Sector annual supervisory
fees, Online processing of
eRediscounting loan proceeds and
collection of banks maturing loans
with Department of loans and credit,
Processing/posting of banks’ cash
deposit and withdrawal transactions
with cash Department.