Monetary and Banking 1 BSP

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BANGKO SENTRAL NG PILIPINAS


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THE BSP It was established on 3 July 1993 pursuant to the provisions

of the 1987 Philippine Constitution and the New CentralBank Act of 1993.

The BSP took over from the Central Bank of Philippines,which was established on 3 January 1949, as the countrys

central monetary authority. The BSP enjoys fiscal and administrative autonomy from

the National Government in the pursuit of its mandatedresponsibilities.


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THE BSP SEAL The new BSP logo is a perfect round shape in blue that features

three gold stars and a stylized Philippine eagle rendered in whitestrokes.

These main elements are framed on the left side with the textinscription Bangko Sentral ng Pilipinas underscored by a gold linedrawn in half circle.

The right side remains open, signifying freedom, openness, andreadiness of the BSP, as represented by the Philippine eagle, to soarand fly toward its goal.

Putting all these elements together is a solid blue background tosignify stability.


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BSP SEAL:

THE PRINCIPAL ELEMENTS1. The Philippine Eagle, our national bird, is the worlds largest eagle and is a

symbol of strength, clear vision and freedom, the qualities we aspire for asa central bank.

2. The three stars:

- represent the three pillars of central banking:price stability, stable

banking system, and a safe and reliable payments system.- It may also be interpreted as a geographical representation of BSPsequal concern for the impact of its policies and programs on all Filipinos,whether they are in Luzon, Visayas or Mindanao.


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BSP SEAL: THE COLORS

1. The blue background signifies stability.

2. The stars are rendered in goldto symbolize wisdom,wealth, idealism, and high quality.

3. The white color of the eagle and the text for BSPrepresents purity, neutrality, and mental clarity.


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BSP SEAL: THE FONT OR TYPE FACE

Non-serif, bold for BANGKO SENTRAL NGPILIPINAS to suggest solidity, strength, andstability.

- The use of non-serif fonts characterized by cleanlines portrays the no-nonsense professionalmanner of doing business at the BSP.


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BSP SEAL: THE SHAPE

Round shape to symbolize the continuing andunending quest to become an excellent monetaryauthority committed to improve the quality of lifeof Filipinos.

This round shape is also evocative of our coins,the basic units of our currency.


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BSP: THE OFFICEBSP Main Complex in Manila houses the offices of the Governor, the

Monetary Board and the different operating departments / offices.The Complex has several buildings, namely: 5-Storey building,Multi-storey building, the EDPC building and the BSP MoneyMuseum, which showcases the Bank's collection of currencies.

BSP Security Plant Complex which is located in Quezon City, houses abanknote printing plant, a securities printing plant, a mint and agold refinery. The banknote printing plant and the mint take care ofproducing currency notes and coins, respectively.


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BSP:

THE REGIONAL OFFICES & BRANCHESBSP has three regional offices performing cash operations, cash administration, loans and

rediscounting, bank supervision and gold buying operations. These regional offices are located in LaUnion, Cebu City and Davao City.

There are 18 BSP branches situated in Batac (Ilocos Norte), Tuguegarao City (Cagayan), Dagupan City(Pangasinan), Cabanatuan City (Nueva Ecija), Angeles City (Pampanga), Lucena City (Quezon), NagaCity (Camarines Sur), LegazpiCity (Albay), Dumaguete City (Negros Oriental), Bacolod City (Negros

Occidental), Iloilo City (Iloilo), Kalibo (Aklan), Tacloban City (Leyte), Cagayan de Oro City (MisamisOriental), Ozamiz City (Misamis Occidental), Cotabato City, General Santos City (South Cotabato)and Zamboanga City (Zamboangadel Sur). They perform cash operations, cash administration, andin certain areas, gold buying operations.


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BSP:

OVERVIEW OF FUNCTIONS AND

OPERATIONSI. Objectives

The BSPs primary objective is to maintain price stability conducive toa balanced and sustainable economic growth. The BSP also aims to

promote and preserve monetary stability and the convertibility of thenational currency.

II. Responsibilities

Liquidity Management. The BSP formulates and implements monetary

policy aimed at influencing money supply consistent with its primaryobjective to maintain price stability.


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Currency issue. The BSP has the exclusive power to issue thenational currency. All notes and coins issued by the BSP are fullyguaranteed by the Government and are considered legal tender forall private and public debts.

Lender of last resort. The BSP extends discounts, loans andadvances to banking institutions for liquidity purposes.

Financial Supervision. The BSP supervises banks and exercisesregulatory powers over non-bank institutions performing quasi-banking functions.


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Management of foreign currency reserves. The BSP seeks tomaintain sufficient international reserves to meet any foreseeable

net demands for foreign currencies in order to preserve theinternational stability and convertibility of the Philippine peso.

Determination of exchange rate policy. The BSP determines theexchange rate policy of the Philippines.

Other activities. The BSP functions as the banker, financial advisorand official depository of the Government, its political subdivisionsand instrumentalities and government-owned and-controlledcorporations.


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BSP: THE MONETARY BOARD

The powers and functions of the BSP, such as the conduct of monetarypolicy and the

supervision over the banking system, are exercised by its MonetaryBoard, which has seven members appointed by the President ofthe Philippines.

Beginning in July 2006, the Monetary Board has met every six weeks toreview and decide on the stance of monetary.

Prior to July 2006, monetary policy meetings by the Monetary Boardwere held every four weeks.


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BSP: BOARD OF DIRECTORS

Chairman Amando M. Tetangco, Jr.

Members Cesar V. Purisima

Alfredo C. AntonioIgnacio R. Bunye

Peter B. Favila

Felipe M. MedallaArmando L. Suratos


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BSP: LOANS, CREDIT & ASSET

MANAGEMENT OVERVIEWThe BSP extends discounts, loans and advances to banking institutions

in order to influence the volume of credit consistent with objectiveof price stability.

When availing of the loan facilities of the BSP, private banks assign toBSP their receivables including the collaterals. Upon failure of these

banks or their borrowers to pay their loans, the BSP foreclosesthese real properties. Banks also pay their loans with propertiesunder a dacion en pago agreement. As such, the BSP has acquiredassets which it administers, preserves and disposes properly.


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BSP: BANKING SUPERVISION

The Bangko Sentral ng Pilipinas has supervision overthe operations of banks and exercises suchregulatory powers as provided in the New CentralBank Act and other pertinent laws over theoperations of finance companies and non-bankfinancial institutions performing quasi-bankingfunctions.


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BSP: KEY RATES

15 November 2011

US$ 1.00 - PhP 43.218

Repo Rate - 6.50%

Reverse Repo Rate - 4.50% Inflation Rate (Oct '11) - 5.3%

91-day T-bill Rate - 0.919%

Gold Buying/ troy oz. - $1,790.40

Silver Buying- US$34.30


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BSP: KEY RATES

14 November 2011 US$ 1.00 - PhP 43.302

Repo Rate - 6.50%

Reverse Repo Rate - 4.50%

Inflation Rate (Oct '11) - 5.3%

91-day T-bill Rate - 0.919%

Gold Buying/ troy oz. - US$1791.95

Silver Buying - US$34.70


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BSP NOTES AND COINS

The BSP has the exclusive power and authority toissue the national currency.

BSPs notes and coins are issued against, and inamounts not exceeding, the assets of the BSP.

All notes and coins issued by the BSP are fullyguaranteed by the government and areconsidered legal tender for all private and publicdebts.


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BSP: THE MONETARY POLICY

The primary objective of BSP's monetary policy is topromote a low and stable inflation conducive to abalanced and sustainable economic growth.

The adoption of inflation targeting framework formonetary policy in January 2002 is aimed atachieving this objective.


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BSP: ORGANIZATIONAL STRUCTURE

As of June 2009

Executive Management Services

Monetary Board, Governor

Functional Sectors Monetary Stability Sector

Supervision and Examination Sector

Resource Management Sector

Security Plant Complex


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CBP/BSP: GOVERNORS

I. CENTRAL BANK OF

THE PHILIPPINES GOVERNORSQuirino (1948 1953 )

Magsaysay (1953 1957)

Garcia (1957 1961)

Miguel Cuaderno, Sr. - 3 January 1949 - 31 December 1960

Macapagal (1961 1965)

Marcos (1965 1986)

Andres V. Castillo - 6 January 1961 - 31 December 1967

Alfonso Calalang - 1 January 1968 - 9 January 1970

Gregorio S. Licaros - 10 January 1970 - 15 January 1981

Jaime C. Laya - 16 January 1981 - 18 January 1984


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CBP/BSP: GOVERNORS

Aquino (1986 1992)

Ramos (1992 1998)

Jose B. Fernandez, Jr. - 19 January 1984 - 19 February 1990

Jose L. Cuisa, Jr. - 20 February 1990 - 2 July 1993


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CBP/BSP: GOVERNORS

II. BANGKO SENTRAL NG PILIPINAS GOVERNORS

Ramos (1992 1998)

Estrada (1998 2001)

Gabriel C. Singson - 6 July 1993 - 5 July 1999

Arroyo ( 2001 2010)

Aquino (2010 present)

Rafael B. Buenaventura - 6 July 1999 - 3 July 2005

Amando M. Tetangco, Jr. - 4 July 2005-Present

Monetary and Banking 1 BSP

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