About the Bangko Sentral ng Pilipinas

Summary

The Bangko Sentral ng Pilipinas (BSP) is the country's central bank, established in 1993 under RA 7653. It aims to achieve price stability, financial stability, and an efficient payments system. The BSP uses policy tools to control inflation, supervises banks for safety and soundness, and issues currency. It manages international reserves to maintain the peso's value and sets exchange rate policies to promote economic efficiency. Additionally, the BSP serves as the government's banker, financial advisor, and depository, and is committed to various advocacy programs for economic empowerment and financial literacy.

Takeaways

• 🏛️ The BSP (Bangko Sentral ng Pilipinas) is the central bank of the Philippines, succeeding the Central Bank of the Philippines which was founded in 1949.
• 📜 Established in 1993 by Congress through RA 7653, the BSP Charter, the BSP has since been operating as the country's monetary authority.
• 🦅 The BSP's logo, adopted in 2010, features the Philippine eagle symbolizing its aspiration to become a world-class monetary authority, with three stars representing its three pillars.
• 💼 The three pillars of central banking that the BSP focuses on are price stability, financial stability, and an efficient payments and settlements system.
• 💰 Price stability is the BSP's primary mandate, aiming to keep inflation low and stable to promote economic efficiency and improve the well-being of Filipinos.
• 🏦 As a supervisor of banks, the BSP ensures the health of the banking system by enforcing rules and regulations for safe and sound banking practices.
• 💵 The BSP is the sole issuer of Philippine banknotes and coins, managing the country's currency in daily business and commercial transactions.
• 🌐 The BSP manages international reserves, composed mainly of foreign securities, gold, and foreign exchange, to meet the economy's foreign exchange needs and maintain the peso's value.
• 📉 The BSP determines the country's exchange rate policy, currently allowing market forces to determine the rate for efficient resource allocation and business growth.
• 🏦 As the banker of banks, the BSP can provide loans and financial assistance to banks as a lender of last resort.
• 🏛️ The BSP also serves as the banker, financial advisor, and official depository of the Philippine government, in addition to its core monetary tasks.

Q & A

What is the full name of the BSP and what was its predecessor?

The full name of the BSP is the Bangko Sentral ng Pilipinas, and its predecessor was the Central Bank of the Philippines.

In what year was the Central Bank of the Philippines established and when did it cease operations?

The Central Bank of the Philippines was established in 1949 and it ceased operations in 1993.

What legislation established the current BSP?

The current BSP was established by Congress pursuant to Republic Act No. 7653, also known as the BSP Charter.

What does the BSP's logo featuring the Philippine eagle symbolize?

The Philippine eagle in the BSP's logo symbolizes the BSP's aspiration to soar toward becoming a world-class monetary authority.

What are the three pillars of Central Banking as represented by the stars in the BSP's logo?

The three pillars of Central Banking represented by the stars in the BSP's logo are price stability, financial stability, and an efficient payments and settlements system.

What is the primary mandate of the BSP concerning price stability?

The primary mandate of the BSP concerning price stability is to keep inflation low and stable to promote economic efficiency and improve the well-being of Filipinos.

How does the BSP ensure financial stability?

The BSP ensures financial stability by maintaining the health of the banking system and enforcing rules and regulations to ensure that banks conduct business in a safe and sound manner.

What is the role of the BSP in the payments and settlements system?

The BSP's role in the payments and settlements system is to ensure the safe, timely, and accurate payment and settlement of financial transactions.

What is the significance of the BSP issuing Philippine Bank notes and coins?

The BSP issuing Philippine Bank notes and coins is significant as these are used by the public in daily business and commercial transactions.

How does the BSP manage the country's international reserves?

The BSP manages the country's international reserves by maintaining adequate foreign assets, mostly composed of investments in foreign issued securities, gold, and foreign exchange.

What is the current exchange rate policy determined by the BSP?

The current exchange rate policy determined by the BSP allows market forces to determine the exchange rate, ensuring that a true level of foreign exchange is reflected and inducing a more efficient allocation of resources in the economy.

What additional roles does the BSP have beyond its core tasks?

Beyond its core tasks, the BSP is committed to various advocacy programs such as economic and financial learning, financial inclusion, consumer protection, clean note policy and anti-counterfeiting campaigns, recirculation of coins, and culture and arts initiatives.