BANGKO SENTRAL NG PILIPINAS

A. GOVERNANCE

BANK B. ADVOCACIES C. FACILITIES

OF THE

The Monetary Board The powers and function of Bangko Sentral are exercised by its Monetary Board, which has seven members appointed by the President of The Philippines. Under the New Central Bank Act, one of the government sector members of the Monetary Board must also be a member of the Cabinet designated by the President

Governance of the Bank

The New Central Bank Act establishes certain qualifications for the members of the Monetary Board and also prohibits members from holding certain positions with other governmental agencies and private institutions that may give rise to conflicts of interest. With the exception of the members of the Cabinet, the Governor and the other members of the Monetary Board serve terms of six years and may only be removed for cause.

Governance of the Bank

The Monetary Board meets at least once a week. The Board may be called to a meeting by the Governor of the Bangko Sentral or by two (2) other members of the Board. Usually, the Board meets every Thursday but on some occasions, it convenes to discuss urgent issues.

Governance of the Bank

The major functions of the Monetary Board include the power to: Issue rules and regulations it considers necessary for the effective discharge of the responsibilities and exercise of the powers vested in it; Direct the management, operations, and administration of Bangko Sentral, organize its personnel and issue such rules and regulations as it may deem necessary or desirable for this purpose;

Governance of the Bank

Establish a human resource management system which governs the selection, hiring, appointment, transfer, promotion, or dismissal of all personnel; Adopt an annual budget for and authorize such expenditures by Bangko Sentral as are in the interest of the effective administration and operations of Bangko Sentral in accordance with applicable laws and regulations; and

Governance of the Bank

Indemnify its members and other officials of Bangko Sentral, including personnel of the departments performing supervision and examination functions, against all costs and expenses reasonably incurred by such persons in connection with any civil or criminal action, suit or proceeding, to which any of them may be made a party by reason of the performance of his functions or duties, unless such members or other officials is found to be liable for negligence or misconduct.

Governance of the Bank

The Governor
The Governor is the chief executive officer of BSP and is required to direct and supervise the operations and internal administration of BSP. Specifically, the Governor: prepares the agenda for the meetings of the Monetary Board and submits policy recommendations for consideration of the Board; executes and administers policies and measures approved by the Monetary Board; appoints and fixes the remunerations and other emoluments of personnel, as well as imposes disciplinary measures upon personnel of the Bangko Sentral;

Governance of the Bank

renders opinions, decisions, or rulings, which shall be final and executory until reversed or modified by the Monetary Board, on matters regarding application or enforcement of laws pertaining to institutions supervised by the BSP and laws pertaining to quasi-banks, as well as regulations, policies or instructions issued by the Monetary Board, and the implementation thereof; and exercises such other powers as may be vested in him by the Monetary Board.

Governance of the Bank

The Governor is the principal representative of the Monetary Board and of the BSP. As such, the Governor is empowered to: represent the Monetary Board and the BSP in all dealings with other offices, agencies and instrumentalities of the Government and all other persons or entities, public or private, whether domestic, foreign or international; and sign contracts entered into by the BSP, notes and securities issued by the BSP, all reports, balance sheets, profit and loss statements, correspondence and other documents of the BSP.

Governance of the Bank

BSP Initiatives on Microfinance In 2000, the BSP was mandated by the General Banking Law to recognize microfinance as a legitimate banking activity and to set the rules and regulations for its practice within the banking sector. In the same year, the BSP declared microfinance as its flagship program for poverty alleviation. Since 2000, the BSP has been proactive in the development of microfinance using a three pronged approach: I) To provide the enabling policy and regulatory environment, II) To increase the capacity of the BSP and banking sector on microfinance operations, and III) To promote and advocate for the development of sound and sustainable microfinance operations.

Advocacies

Anti-Money Laundering

In order to implement its continued commitment and support of the global fight against money laundering, the BSP has issued a number of measures to bring the Philippines' regulatory regime on money laundering closer to international standards. In September 2001, the Anti-Money Laundering Act (AMLA) of 2001 was passed. The legislation, among others, defines money laundering as a criminal offense, prescribes penalties for such crimes committed and forms the foundation of a central monitoring and implementing council called the Anti-Money Laundering Council (AMLC). The AMLC is composed of the Governor of the Bangko Sentral as Chairman and the Commisioner of the Insurance Commission and the Chairman of the Securities and Exchange Commission as members. It acts unanimously in the discharge of its functions.

Advocacies

Anti-Money Laundering
To address concerns such as the high threshold level for covered transactions, the coverage of covered institutions and the existing Bank Secrecy Law, the amendments to the AMLA were signed into law on 7 March 2003. The amendments included the following: a) lowering the threshold for covered transactions from P4.0 million to P500,000; b) b) authorizing the BSP to inquire or examine any deposit or investment with any banking institution without court order in the course of a periodic or special examination; and c) c) removing the provision prohibiting the retroactivity of the law.

Advocacies

Anti-Money Laundering With the approval of the law incorporating these amendments, the Financial Action Task Force sanctions on non-complying countries were not imposed on the Philippines. However, the Philippines at that time remained in the list of non-cooperative countries and territories (NCCTs). The countrys removal from the list will be determined by the FATF after close monitoring of the implementation issues.

Advocacies

Anti-Money Laundering The revised implementing rules and regulations (IRR) on the

AMLA of 2001 as amended was approved by the Congressional Oversight Committee on 6 August 2003 and was implemented on 3 September 2003. In October 2003, the Philippines amendments to the AMLA were evaluated by the FATF and were found to be at par with international standards. On 11 February 2005, the Philippines, Cook Islands, and Indonesia were removed from the list of NCCTs during the meeting of the FATF. After the countrys delisting from the list of NCCTs, the AMLC of the Philippines is now one of seven new members of the Egmont Group, the global network of FIUs against money laundering and terrorist financing, making the Philippines an equal partner in the global fight against money laundering and terrorist financing. Membership to the Egmont Group means affording AMLC free and unlimited access to a wealth of financial data contained in the databases of all the FIU-members of the group. All information exchanged by FIUs are subjected to strict controls and safeguards to ensure it is used only in an authorized manner, consistent with national provisions on privacy and data protection.

Advocacies

Financial Literacy The BSP has taken a proactive stance in embarking on a consumer education program that aims to improve the basic financial literacy of the public. In line with this program, the BSP approved in January 2004 the creation of the BSP Consumer Education Committee. The Committee initially addressed the basic financial literacy needs of consumers of financial products and services. This involved familiarizing the public on the various banking products and services that they usually encounter in ordinary financial transactions. Moreover, the BSP promoted consumer rights awareness and protection through its linkage with an inter-agency group, ConsumerNet. ConsumerNet is a group of national government agencies that have banded together to facilitate the resolution of consumer complaints and disseminate information regarding consumer rights.

Advocacies

Economic Information As part of the monetary authorities effort to promote greater transparency of monetary policy-making in the Philippines, enhance public awareness on the role of the BSP in the Philippine economy, and help manage inflation expectations and reputational risks, the BSP conducts a series of public information campaign on the role of the BSP in the Philippine economy and the recent economic developments in various cities within and outside Metro Manila.

Advocacies

Overseas Filipino Workers The BSP initiatives to improve the Overseas Filipinos (OFs) remittance environment are geared towards the following: Enhancing transparency and promoting competition in the remittance market. Studies on remittances underscore the importance of healthy competition among the remittance players to bring down transaction costs. To drive down remittance charges, remitters and beneficiaries should be fully aware of the costs and benefits of the different products and services available in the market. The BSP issued Circular No. 534 dated 26 June 2006, requiring banks and non-bank financial institutions to post remittance charges, classification of costs, and other relevant information for the benefit of remitters and beneficiaries. To facilitate access to bank websites, the BSP will serve as a portal* to all relevant pages of the banks on remittance services and products, locations of branches/centers, as well as their corresponding service fees.

Advocacies

Overseas Filipino Workers Improving access to financial services. Toward promoting efficient and speedy transfer of funds to beneficiaries in remote areas of the country, the BSP has:
a) granted foreign currency deposit unit (FCDU) license to rural banks/cooperative banks to encourage the flow of foreign exchange into the banking system and provide OFs with an option to maintain foreign currency deposits (FCD) instead of immediately exchanging their remittance proceeds into pesos through the issuance of Circular No. 522 on 23 March 2006; b) facilitated interconnection of major ATM networks to provide safer and convenient banking and to reduce transaction cost or service fees for all ATM-related transactions of over 10 million ATM cardholders, including OFs and their beneficiaries; c) approved alternative modes of remittances, e.g., Smart Padala, G-Cash and stored value cards to achieve lower transaction cost and faster delivery time for the remitters and the beneficiaries;

d) issued Circular Nos. 564 (3 April 2007) and 608 (20 May 2008) to standardize identification requirements of banks to customers while ensuring compliance with the AntiMoney Laundering Act. The BSP issued Circular No. 657 on 16 June 2009 to further amend Circular No. 564 allowing the use of foreign-issued passports as valid identification of OFs when financially transacting in the Philippines; and

Advocacies

Overseas Filipino Workers

Encouraging OFs and their families to increase savings and investment. The BSP has encouraged commercial banks to offer OFs specialized investment products and services, e.g., insurance, pension and real estate, with direct payment schemes to ensure the security and added convenience of beneficiaries. The BSP has also approved the proposals of DBP and LBP to launch their hedging program and Long-Term Negotiable Certificates of Deposit for OFWs, respectively. Microfinance has also been promoted by the BSP as a flagship program for poverty alleviation to help channel remittances sent to rural households to investment in small scale businesses.

Advocacies

Overseas Filipino Workers Promoting financial learning among OFs and their beneficiaries. The BSP continues to undertake its advocacy through financial learning campaigns (or FLCs) that aim to promote a culture of savings among OFs and their families and encourage the channeling of these savings into productive investments in financial instruments and business ventures. The FLCs are conducted using lectures and multimedia presentations focusing on topics such as the importance of remittances, financial planning, rewards and risks associated with various financial instruments, and ways to protect remittances and savings. Through the FLC, the BSP aims to encourage the productive uses of remittances, not only for consumption or spending for basic needs, but also for savings in different forms of financial instruments and/or investments such as in micro, small- and medium-sized enterprises.

Advocacies

Overseas Filipino Workers In addition to the financial learning activities, OFs and their families can make use of the Financial Planner developed by the International Organization for Migration (IOM) and ATIKHA (a development-oriented Philippine NGO) to guide them in managing their finances. The financial planner provides a simple and practical guide for migrant workers and their families to manage their budget and remittances within a framework of wise-spending, savings and investment. It includes tools on the budgeting process, planning for retirement, savings and entrepreneurial undertakings, cash flows monitoring, property acquisition, investment portfolios, and overall financial standing.

Advocacies

Within the complex of the Bangko Sentral ng Pilipinas, the nation's central monetary authority, resides a numismatist's haven the Museo ng Bangko Sentral ng Pilipinas. Inaugurated on January 3, 1999, as part of the celebration of the 50 years of central banking in the Philippines, the Museo showcases the Bank's collection of currencies.

Facilities

As repository and custodian of the country's numismatic heritage, the Museo collects, studies and preserves coins, paper notes, medals, artifacts and monetary items found in the Philippines during its different historical periods. These collections have been placed on permanent display at the Museo.

Facilities

Designed to "walk" the visitor through a number of galleries, individually dedicated to a specific historical period of the country, the Museo visually narrates the development of the Philippine economy, parallel to the evolution of its currency. Complementary paintings from the BSP art collection, together with chosen artifacts, enhance each gallery.

Facilities

A panoramic memorabilia of 50 years of central banking in the Philippines, showcases the strides made in bringing about price stability, to sustain economic growth in the country. The exhibition hall also carries the busts of the governors of the Central Bank/ Bangko Sentral.

Facilities

The Economic and Financial Learning Center of the BSP is the focal point of contact of the public of information concerning economic and financial matters. Instead of gathering various information from different departments/locations within the BSP, researchers can just visit the EFLC for their information requirements

Facilities

Established in 1976, the Met was originally a museum to show foreign art. Its basic nature and purpose was "to broaden our people's awareness of the cultures of the world and to provide them with the opportunity of viewing international art in original form." By 1986, 90 exhibitions of nonPhilippine art had been held at the museum. Among them were the works of Picasso, Klee, and Gropius, as well as group shows from Germany, Italy, Mexico, the United States, and Yugoslavia.

Facilities