What do you know about the Bangko Sentral ng Pilipinas (BSP)?

Bangko Sentral ng Pilipinas or BSP is the Philippines' Central Bank. Its forerunner was the Central Bank of the Philippines which was founded in 1949. In 1993 the Central Bank was reorganized as the Bangko Sentral ng Pilipinas.

The main responsibilities and functions of the BSP

All of which have direct effects of everyone's daily lives are as follows:

• The BSP is tasked of promoting price stability. It uses its various policy tools to help keep inflation low.
• The BSP is also the supervisor of all banks. It monitors and examines the operations of banks and quasi-banks all over the country. It also regulates under special laws other financial institutions such as non-stock savings and loan associations as well as pawnshops.
• The BSP is the only agency that can issue Philippine banknotes and coins.
• The BSP manages the country's international reserves. It maintains adequate international reserves too meet the economy's needs. This also help keep the Philippine peso stable.
  
• The BSP determines the country's exchange rate policy. It follows a policy of allowing market forces to determine exchange rate.
• The BSP is the bank of banks. As the lender of last resort, it can provide loans and assistance to banks when necessary.
• The BSP is the banker, financial adviser and main official depository bank of the Philippine government.

3 Pillars of BSP Central Banking

The Bangko Sentral ng Pilipinas (BSP) is primarily task with promoting low inflation and a healthy financial system. To carry out its mandate, the BSP focuses on the three (3) main areas or pillars of central banking.

1. Price Stability. This entails keeping inflation low to promote economic efficiency and improve the well being of Filipinos.

2. Financial Stability. The BSP ensures banks compliance prudential rules and regulations. It ensures that banks conducts business in a safe and sound manner.

3. Efficient Payment and Settlements System. This enables people to make safe, timely and accurate settlements of financial transactions.

BSP Organizational Structure/Hierarchy

The BSP is headed by the BSP governor. The governor also chairs the Monetary Board, a policy-making body of the BSP. Apart from the governor, there are six (6) other members of the Monetary Board: five from the monetary sector and one from the cabinet.

The BSP has 3 Deputy Governors in charge of monetary stability, supervision and examination, as well as resource management. In addition, key departments and offices comprise an executive management services sector which is directly under the supervision of the governor.

The BSP has a Security Plant Complex where coins are minted, banknotes are printed and gold is refined. There are three (3) regional offices located in La Union, Cebu City, and Davao City as well as 18 branches in key cities and municipalities.

BSP Advocacy Programs

In addition to its regular task, the BSP is committed to its various advocacy programs. These advocacies touch the lives of Filipinos all over the country:

• Filipinos wanting to learn about financial products and how the economy works,
  
• Overseas Filipino Workers (OFWs) looking to achieve financial freedom and ways to make their money grow,
• micro borrowers wanting to start their own business,
  
• school children and future entrepreneurs,
  
• art lovers and museum enthusiasts,
  
• the less fortunate and those in need in financial assistance.
  

The Bangko Sentral ng Pilipinas seeks to provide a solid anchor for the economy as well as leadership through changing times. It touches our lives and molds our future. Now what do you know about the BSP?
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