Bangko Sentral Ng Pilipinas

The Confidence of Money BSP preserves the confidence of money as a thing of value and essential of the economic system. Once the trust is broken, money ceases to function as it should be, as a vehicle of economic activities and pillar of the price system.

The BSP Organization

RMS: responsible for the management of human, financial, and physical resources of the Bank MSS: responsible for the operations/ activities related to monetary policy formulation and implementation SES: responsible for the regulation of banks and other BSP-supervised financial institutions SPC: responsible for the production of Philippine currency, security documents, and commemorative medals and medallions

Characteristics of BSP 1. Publicly-owned- fully owned and controlled by the government. 2. Bank of currency issues and ultimate source of money- in theory, the BSP can provide the all the money the government requires. 3. Banker’s Bank- all central banks performs this function including maintaining accounts for commercial banks 4.Costudian of the country’s reserve of foreign currencies- reserves are traditionally held in dollars. 5. Regulation of monetary and financial activity- supervision of the bank and other financial institution to assure their solvency and to protect the general public.

The Objectives of BSP 1. to maintain price stability conducive to a balanced and sustainable growth of the economy. 2. to promote and maintain monetary stability and the convertibility of peso.

BSP stands ready to support activities that serve to strengthen the country’s commercial linkages with the world economy by: 1. Helping create a stable financial environment 2. Promoting liberal foreign exchange rules 3. Enhancing access to local and foreign capital to support investment.

The Monetary Board Governor-(Amando M. Tetangco Jr.) the chairman of the Monetary Board, subject to the confirmation by the Commission of Appointments - CEO of the BSP and empowered to sign notes and securities issued by the BSP Member of the cabinet-(Carlos G. Dominguez III) designated by the president 5 members from private sectors- shall serve full time -Alfredo C. Antonio -Juan D. De Zuniga, Jr. -Valentin A. Araneta -Felipe M. Medalla -Armando L.Suratos

Qualifications to become a board member: The members of the Monetary Board must be natural born citizen of the Philippines. At least 35 years of age, with the exception of the Governor who shall be at least 40 years of age. Of good moral character of unquestionable integrity. Of known recognized competence in social and economic disciplines.

Powers and duties of the governor A) To prepare the agenda for the meetings of the Monetary Board and to submit for the consideration of the Board the policies and measures which he believes are necessary in carrying out the purposes and provisions of the Central Bank Act. B) To execute and administer the policies and measures approved by the Monetary Board. C) To direct and supervise the operations and internal administration of the Central Bank. D) To exercise such powers as may be vested by the Monetary Board.

The Governor is empowered: A) To represent the Monetary Board and the BSP in all dealings with other offices, agencies and instrumentalities of the Government and with all other persons or entities, without the approval or the concurrence of any other agency of the Government public or private, whether domestic, foreign or international. B) To authorized, with his signature, contracts concluded by the Bangko Sentral ng Pilipinas, notes and securities issued by bank, annual reports, balance sheet, profit and loss statements, correspondence and other documents of the Bank. The signature of the Governor may be facsimile whenever appropriate.

The Governor is empowered: C) To represent the Bangko Sentral either personally or through counsel in any legal proceedings or action. D) To delegate his power to represent the Bank to other officers of the Bank upon his own responsibility.

The Senior Deputy Governors and the Deputy Governors - The Governor, with the approval of the Monetary Board, can appoint one or more senior deputy governors and deputy governors, in a maximum number as may be approved by the President of the Philippines. - They shall perform duties as may be assigned by the Governor and the Board. - In the absence of the governor, designated by the Governor, acts as executive of the Bank. As such, he exercises the powers and performs the duties of the Governor.

The Senior Deputy Governors and the Deputy Governors - Whenever the Governor of the Senior Deputy Governor is unable to attend meetings of the government boards or councils in which he is an ex-officio members, a senior deputy governor or deputy governor, is vested with the authority to participate and exercise the right to vote in such meeting. - They shall have such line or staff authority as may be delegated by the Governor and the Monetary Board.

The Senior Deputy Governors and the Deputy Governors - At present, 5 Deputy Governors are normally assigned specific areas of responsibilities or functional sectors, which comprise the department(s) and office(s) of allied functions or operations. - These officials have the following duties: - To advise and assist the Governor and the senior Deputy Governor on matters pertaining to the sector’s area of specialization. - To coordinate and oversee the programs, projects and operations of the departments and offices under his sector.

- These officials have the following duties: - To develop plans, programs and operating standards for the departments and offices in his sector in the light of the overall Bank objectives, policies and programs. - To perform such other functions and duties as may be assigned to him by the monetary board, the Governor and Senior Deputy Governor.

Actions when the International Stability of Peso is Threatened A. Take such remedial measures appropriately and within the powers granted to the Monetary Board and BSP under the provision of this act. B. Submit to the President of the Philippines and to the congress a detailed report which shall include, as a minimum, a description and analysis of: The nature and causes of existing or imminent decline The remedial measures already taken or to be taken by the MB The MB, fiscal or administrative measures further proposed The character and extent of cooperation from government agencies for the successful execution of polies of the Monetary Board

How the BSP influence the Economy National economic goals: -Full employment -Stable price levels -Sustainable economic growth -Stable Balance-of-payments-position Volume and growth of borrowing and spending by the public and on the domestic and foreign consumer and capital goods and services Policy tools of the CB Market Interest Rates Cost of Availability of credit Size and growth rate of money Supply Market value of the public security holdings Relative prices if domestic and foreign currencies

Other Means of BSP Regulation & Supervision Prepares data and conducts economic research for the guidelines of the Monetary Board in the formulation and implementation of its policies Authorized to request from the government offices and instrumentalities any data which it may require for the proper discharge of its function and responsibilities Promotes and sponsors training of technical personnel in the field of money and banking Exercise supervision over and conduct periodic or special examination of banking institution and quasi-bank, including their subsidiaries and affiliates engaged in allied activities Sole power and authority to issue currency within the territory of the Philippines

Other Means of BSP Regulation & Supervision May buy and sell gold in any form, subject to such regulation as the Monetary Board issue May engage in Foreign Exchange transactions May grant loans, rediscounts and discounts, and advances to banking institution to influence the volume of credit consistent with the objective of price stability May collect interest and other appropriate charges on all loans and advances it extends, the closure, receivership or liquidation of the debtor institution notwithstanding.