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56 Cards in this Set
- Front
- Back
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Particular group of Filipinos were trying to conceptualize a central bank for the Philippines |
1933 |
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The bureau of banking under the department of finance took over the task of banking supervision |
February 1929 |
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A bill establishing a central bank was drafted by secretary of financial finance manuel roxas and approved bt the the Philippine legislature |
1939 |
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Act no. 52 was passed by the first Philippine commission placing all banks under the bureau Treasury |
1900 |
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President manuel roxas submitted to congress a bill " establish a central bank of the Philippines" |
February 1948 |
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The bill was signed into law as republic act no. 265 by pres elpidio quirino |
June 15, 1948 |
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The central bank of the Philippines was inaugurated and formally opened with hon miguel cuaderno as first gov. |
January 3, 1949 |
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BSP was established to replace the CBP as the country's central monetary authority |
July 3, 1993 |
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BSP objective |
The bsp's primary objective is to maintain price stability conducive to a balanced and sustainable economic growth |
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BSP responsibilities |
The BSP provides policy directions in the area if money, banking, and credit |
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Functions and operations of BSP |
*Liquidity management *Currency issue *Lender of last resort *Financial supervision *Management of foreign currency reserves *determination of exchange rate policy |
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Other BSP functions |
Banker Financial advisor Official depository of the government |
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Exercise the powers and functions of the BSP |
Monetary board |
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Five full time members from the private sector |
Alfredo antonio Juan de zuñiga jr Valentin araneta Felipe medalla Armando suratos |
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The chief executive officer of the BSP and is required to direct and supervise the operations and internal administration of the BSP |
Governor |
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Heads each of the BSP's operating sector |
Deputy Governor |
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Takes charge of the formulation and implementation of the BSP's monetary policy |
Monetary stability sector |
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Enforces and monitors compliance to banking laws to promote a sound and healthy banking system |
Supervision and examination sector |
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Serves the human, financial and physical resource needs of the BSP |
Resource management sector |
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BSP main complex |
Manila |
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5 several building of bsp complex |
5 storey building Multi-storey building Edpc building BSP money museum |
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BSP security plant complex |
Quezon city |
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3 regional offices |
La union Cebu city Davao city |
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Government agency or privately owned entity that collects funds from the public |
Financial institutions |
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Act as a intermediaries between savers and borrowers |
Financial institutions |
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2 types of financial institutions |
Depository f.I Non-depository f.I |
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Examples of depository f.I |
*Commercial banks *Savings and loan associations, *mutual savings bank *Credit unions |
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Example of non-depository financial institutions |
Brokerage firms Life insurance companies |
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Other types of financial institutions |
Credit unions Stock brokerage firms Asset management firms |
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Common objective of f.I |
Maintain the balance between the returns and risks |
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3 pillars of central banking |
*Price stability *Financial stability *Efficient payments and settlements system |
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The bsp primary mandate |
Price stability |
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Refers to low and stable inflation |
Price stability |
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Preserves purchasing power |
Price stability |
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Represents the average price of a standard basket of goods and services consumed by a typical Filipino family for a given period |
Consumer price index |
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Annual percentage change in CPI |
Inflation rate |
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Sustained increase in the average prices of goods and services typically purchased by consumers |
Inflation |
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How does the price stability works |
Bsp Monetary policy Instruments Availability & cost of money Demand for goods and services Inflation |
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How prices determine |
Prices are determined by interaction of supply and demand |
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Actions taken to manage availability and cost of money and credit to attain stable prices |
Monetary policy |
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Instruments |
Interest policy OMO Rediscounting Reserve requirement Special deposit account |
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Inflation targets |
3.00% +- 1.00 ppt |
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Why adopt inflation target |
*Simple framework * allows greater focus on price stability * forward-looking * enables comprehensive approach to monetary policy * increases accountability and helps build credibility Promotes transparency in monetary policy |
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The financial system is able to effectively distribute and manage funds between ssu and dsu |
Financial stability |
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Banking institutions |
Commercial banks Universal banks Thrift bank Rural bank Cooperative banks |
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Other financial institutions |
W/ quasi banking functions Forex dealer/ money changer Bank-affiliated NBFIs Pawnshop NSSLAs |
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NBFIs w/o quasi banking functions |
Lending co Investment houses Financing co Capital markets participants Pre need companies Insurance co Cooperative |
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How does the BSP supervise and regulate financial institutions |
*Safety and soundness of f.I *Compliance with consumer protection laws Policy framework Redress and literacy Advocacy Licencing Knowledge network Examination Surveillance |
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Includes the country's entire matrix of institutional and infrastructure arrangements and processes through which money is transferred from one party to another |
National payments and settlement system |
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Makes transfer of funds between 2 parties easier |
National payments and settlement system |
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Role of bsp |
The owner and operator of philpass |
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A real time gross settlement system where settlement is done thru the --- |
Philippine payments and settlement system Member's bank demand deposit account |
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Philpas transactions |
Settlement of ofw remittances Settlement of atm transactions Govt securities trading Foreign currency traing Bsp's omo |
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Other functions of the BSP |
*Issuer of money *Official depository and financial advisor of the government *bank of banks and lender of last resort * custodian official reserves |
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Financial inclusion programs |
*Microfinance *Economic financial learning program *National strategy for financial inclusion |
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It ia to grant incentives and other benefits |
Republic act no. 9178 or BMBE act of 2002 |
