FIN 011 MODULE 6 – 7 BANGKO SENTRAL NG

PILIPINAS
BANGKO SENTRAL NG PILIPINAS (BSP) MISSION, VISION,
FUNCTIONS AND OPERATIONS

Module 6: Lesson Objectives:

At the end of this module, you should be able to:
1. Recall the vision and mission of BSP.
2. List the functions and operations of BSP.
VISION

English Version​
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.
Filipino Version​
Naghahangad ang BSP na makilala sa buong mundo bilang pangunahing tagapamahala ng sistema at
kaayusan ng pananalapi at ekonomiya upang maitaguyod ang mataas na antas ng kabuhayan para sa lahat ng
Filipino.​

www.bsp.gov.ph
MISION

English Version​
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.
Filipino Version
Itaguyod at panatilihin ang katatagan ng presyo ng mga bilihin at ng sistemang pinansyal, at ng
mahusay, lig​tas at maaasahang pamamaraan ng pagbabayad upang makatulong sa patuloy na
paglago ng ekonomiya at pag-angat ng kabuhayan ng lahat ng mga Filipino.

www.bsp.gov.ph
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.
RESPONSIBILITIES

Under the New Central Bank Act (RA 7653), the BSP performs
the following functions, all of which relate to its status as the
Republic’s central monetary authority.
RESPONSIBILITIES

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.
RESPONSIBILITIES

The 20-Piso New Generation

Currency (NGC) coin has emerged
as a finalist for the ‘Best New Coin
or Series Category: Excellence in
Currency 2022 Awards’ of the
International Association of
Currency Affairs (IACA)
RESPONSIBILITIES

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.
RESPONSIBILITIES

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.
RESPONSIBILITIES

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.
ADVOCACIES

Poverty Alleviation
Fight against money laundering
Transparency of monetary
policy
Improve financial literacy of
the public
MODULE 7: BANGKO SENTRAL NG PILIPINAS
(BSP) OFFICES
BANGKO SENTRAL NG PILIPINAS (BSP) OFFICES

At the end of this module, you should be able to:

1. List the offices under the Monetary Board.
2. Differentiate Offices under the Office of the Governor.
The Monetary Board exercises the powers and functions of the
BSP, such as the conduct of monetary policy and supervision of
the financial system.
OFFICES

1. Office of the Secretary, Monetary Board

Provides secretarial and administrative support to the Monetary
Board
OFFICES

2. Office of the General Counsel and Legal Services

 Renders legal advisory services to the Monetary Board and other
BSP units on matters relating to policies, functions, operations, and
regulations of the BSP
 Prosecutes and defends cases involving the BSP, the Monetary
Board, and Management in judicial and administrative proceedings
OFFICES

3. Office of Special Investigation

Investigates, mediates, and when necessary, prosecutes bank
irregularities and anomalies noted in the examination reports
submitted by the Supervision and Examination Sector
OFFICES

4. Internal Audit Office

Reviews and appraises the effectiveness of operating control
systems of the BSP and makes recommendations to address
findings
Monitors utilization of security materials and other resources of
the BSP
OFFICES UNDER THE OFFICE OF THE GOVERNOR

1. Treasury Department
 Manages the BSP’s international reserves, in accordance with monetary and foreign
exchange policies, at a level and a mix that allows the BSP to meet any demands for
foreign currency
 Undertakes open market operations and transacts with accredited government
securities dealers and the rest of the members of the banking system
 Participates in the Philippine Dealing System to ensure the competitiveness of the
Philippine peso and its convertibility into other acceptable foreign currencies
OFFICES UNDER THE OFFICE OF THE GOVERNOR

2. Systems and Methods Office

 Ensures a well-organized and integrated Bank-wide effort to develop and maintain
efficient systems and procedures
 Provides recommendations along the areas of manualization, business process
reengineering, and systems support
OFFICES UNDER THE OFFICE OF THE GOVERNOR

3. Corporate Planning Office

 Provides technical support to Management in the formulation and application of
strategic plans and practices, and in the development of policies and guidelines in
preparing departmental work plans
OFFICES UNDER THE OFFICE OF THE GOVERNOR

4. BSP Staff in the Anti-Money Laundering Council Secretariat

 Assists the Anti-Money Laundering Council in implementing the provisions of the
Anti-Money Laundering Law
 Receives transaction reports from covered institutions, investigates suspicious
transactions, and causes the filing of complaints with the Department of Justice or the
Ombudsman for the prosecution of money-laundering offenses
OFFICES UNDER THE OFFICE OF THE GOVERNOR

5. Risk Management Office

 Aggregates various risk exposures of the Bank, and identifies appropriate risk control
measures
 Ensures that appropriate risk management practices are being implemented in the
Bank at all times.
OFFICES UNDER THE OFFICE OF THE GOVERNOR

6. Corporate Affairs Office

 Implements programs and policies on public relations and advertising through various
media to promote and enhance BSP’s corporate image.