1. PRIMARY OBJECTIVE OF BANGKO SENTRAL NG PILIPINAS

The New Central Bank Act

Republic Act 7653, Sec. 3. Responsibility and primary objective. - The Bangko Sentral shall provide policy

directions in the areas of money, banking and credit. It shall have supervision over the operations of banks and exercise

such regulatory powers as provide in this Act and other pertinent laws over the operations of finance companies and non-

bank financial institutions performing quasi-banking functions, hereafter referred to as quasi-banks, and institutions

performing similar functions.

The primary objective of the Bangko Sentral is to maintain price stability conducive to a balanced and

sustainable growth of the economy. It shall also promote and maintain monetary stability and convertibility of the

peso.

What are the Bangko Sentral’s primary objectives?

1. To maintain price stability conducive to a balanced and sustainable growth of the economy; and

a) Price stability – refers to the purchasing power of the peso unaffected by the result of

inflation or deflation in the economy of the country ; and

b) Promote rising level of production, employment and real income through lending operations.

2. To promote and maintain monetary stability and convertibility of the peso.

a) Monetary stability- refers to the purchasing power of the peso and its convertibility to other

currencies. It means that the peso must withstand the threat of inflation or deflation. It must

gain public confidence.

b) Foreign exchange refers to the convertibility of the peso to other foreign currencies.

ORIGINAL OBJECTIVES

a) Maintenance of monetary stability in the Philippines;

b) Preservation of the international value of the peso and its convertibility into other freely

convertible currencies; and

c) Promotion of a raising level of production, employment and real income in the Philippines.

AMENDED OBJECTIVES

a) To maintain internal and external monetary stability in the Philippines , and to preserve the

international value of the peso and the convertibility of the peso into other freely convertible

currencies and;

b) To foster monetary, credit, and exchange conditions conducive to a balanced and sustainable

growth of the economy.

Basically, there is no difference between the original and amended objectives of the old Central Bank of the Philippines. In

one of the original objectives, it states the promotion of a rising level of production, employment and real income. This is

equivalent to sustainable economic growth which is stated in the present objective. Nevertheless, whether the old and

amended objectives of the old Central Bank are just the same or not is not really the issue. What is more important is

whether such objectives have been attained or not.

2. Characteristics of Central Bank/Bangko Sentral ng Pilipinas

A central bank has an extra-ordinary position and role in a developing economy. It is not only concerned with the proper monetary and credit structure, but it has also a more important responsibility of promoting the common good. Common good refers to the general welfare of the poor masses.

The profit motive is only secondary in the operations of central banks. Although there are central banks with private stockholders, their personal financial interests cannot go over and above the national interests or public welfare. Thus, not a few profitable investments have been minimized if these conflict with the objectives of monetary stability, and if these compete with private business.

The operations of central banks are more extensively controlled by government laws than other financial institutions. The top officials of central banks are the finance and economic ministers of their counties. In this case of the Philippines, the Monetary Board of the Bangko Sentral is the policy-making body. It formulates monetary policies. However, the laws governing the operations of central banks are made by legislative bodies. Likewise, presidents, prime ministers and other top government officials participate directly and indirectly in the policy decisions of central banks.

In general, it is undesirable for central banks to deal directly with the public. Hence, in almost all cases, central banks do not directly serve the public. If a central bank deals directly with the public, it competes with commercial banks and other financial institutions. Evidently, this is not a favorable situation because a central bank is supposed to help financial institutions – and not to compete with them. A central bank extends financial and technical assistance to banking and non-bank financial institutions. It acts as lender of last resort. It is the bank of all banks. Obviously, a central bank can only attain its goals of monetary stability and economic growth if there is a strong and stable financial system. Hence, it is the basic responsibility of any central bank to use its various resources in promoting a healthy and dynamic financial system.

3. Services of the Central Bank

Some of the easily identifiable things being done or performed by the Central Bank of the Philippines are as follows:

1. Supervises and regulates operation of the banking institution. In addition to monetary management , the Bangko Sentral has played an essential

role in the development of the banking system. It actively uses it s supervisory and regulatory powers over the financial institution to guide the direction and pace of the growth of the financial system. Bank supervison does not include the issuance of appopriate rules and regulations but also the overseeing of the banking system to ascertainin that regualations are complied with; examining banking institution to determine whether they are conducting their business on a sound financial basis; and inquiring into the solvency and liquidity of banks.

2. Regulates operations of non-bank financial intermediaries.The BSP supervises banks and exercises regulatory powers over non-bank institutions

performing quasi- banking functions.

3. Regulates foreign exchange.These are designed mainly to achieve the objectives of the Bangko Sentral of maintaining

external stability and ensuring that foreign exchange resources are available at all times for the foreign exchange requirements of the country.

4. Regulates credits.

This is a major function of any central bank. The Bangko Sentral ng Pilipinas uses its monetary tools in regulating credit. The reason for such control is to maintain price stability or monetary stability which is very vital in the growth of the whole economy.

5. Issues money The BSP has the exclusive power to issue the national currency. All notes and coins issued by

the BSP are fully guaranteed by the Government are considered legal tender for all private and public debts.

6. Mints coins and prints paper money.The BSP also prints the paper notes and mints the coins at its vaults, a ready supply of money is available to replace old ones or add to those currently being used.

7. Keeps reserves.

The New Central Bank Act (RA 7653) CHAPTER IV (ARTICLE VII - BANK RESERVES)

In order to control the volume of money created by the credit operations of the banking system, all banks operating in the Philippines shall be required to maintain reserves against their deposit liabilities: Provided, That the Monetary Board may, at its discretion, also require all banks and/or quasi-banks to maintain reserves against funds held in trust and liabilities for deposit substitutes as defined in this Act. The required reserves of each bank shall be proportional to the volume of its deposit liabilities and shall ordinarily take the form of a deposit in the Bangko Sentral. Reserve requirements shall be applied to all banks of the same category uniformly and without discrimination.

8. Prints and Clears checks Settlement among banks are easier, faster and more convenient if these are done by a central

bank. Various banks have to paid cash to numerous checks owned by other banks. To get paid, representatives of said banks go to the Bangko Sentral where clearing of checks are computerized. However, for checks between provincial banks and Metro Manila banks, clearing is done manually. The manila Clearing/Regional Clearing Unit of the Bangko Sentral handles such clearing of checks.

9. Prints government securities.

Government security means a security created and issued by the Government for the purpose of raising a public loan or any other purpose as notified by the Government in the Official Gazette and having one of the following forms:

i) a Government promissory note (GPN) payable to or to the order of a certain person; or ii) a bearer bond payable to a bearer; or iii) a stock; or iv)a bond held in a bond ledger account (BLA).

10. Grants loans and advances.

The BSP extends discounts, loans and advances to banking institutions in order to influence the volume of credit consistent with objective of price stability. It also grants loans or advances to banking institutions in precarious financial condition or under serious financial pressures, subject to certain conditions.

When availing of the loan facilities of the BSP, private banks assign to BSP their receivables including the collaterals. Upon failure of these banks or their borrowers to pay their loans, the BSP forecloses these real properties. Banks also pay their loans with properties under a dacion en pago agreement. As such, the BSP has acquired assets which it administers, preserves and disposes properly.

11. Buys and sells government securities.This is by the Bangko Sentral is one of the major monetary instruments in regulating money

supply. For instance, n case of inflation, the Bangko Sentral sells government securities in order to remove the excess money supply. Conversely, whenever the national economy requires an expansion of money supply, the Bangko Sentral buys its own securities and other government securities.

4. Comparison of Republic Act No. 265 and Republic Act No. 7653

CHAPTERS 1-3 (Jasmin Joy Cano)

Republic Act No. 265

CHAPTER I

ESTABLISHMENT AND ORGANIZATION OF THE CENTRAL

BANK OF THE PHILIPPINES

ARTICLE I

Creation, Responsibilities and Corporate Powers of the

Central Bank

Sec. 1. Creation of the Central Bank. - The capital of the

Central Bank shall be ten million (P10,000,000) pesos,

which are hereby appropriated from the assets of the

Exchange Standard Fund, as provided in section 134 of this

Act.

Sec. 2. Responsibilities and objectives.

Sec. 3. Place of business.

Sec. 4. Corporate powers.

ARTICLE II

The Monetary Board

Sec. 5. Composition of the Monetary Board. - The powers

and functions of the Central Bank shall be exercised by a

Monetary Board, which shall be composed of seven

members, as follows:

c) The President of the Philippine National Bank, whose

alternate shall be the senior vice-president of said bank.

REPUBLIC ACT No. 7653

CHAPTER I — ESTABLISHMENT AND ORGANIZATION OF THE BANGKO SENTRAL NG PILIPINAS

ARTICLE ICREATION, RESPONSIBILITIES AND CORPORATE POWERS OF

THE BANGKO SENTRAL

Section 1. Declaration of Policy. - The State shall maintain a central monetary authority that shall function and operate as an independent and accountable body corporate in the discharge of its mandated responsibilities concerning money, banking and credit. In line with this policy, and considering its unique functions and responsibilities, the central monetary authority established under this Act, while being a government-owned corporation, shall enjoy fiscal and administrative autonomy.

Section 2. Creation of the Bangko Sentral. - The capital of the Bangko Sentral shall be Fifty billion pesos (P50,000,000,000), to be fully subscribed by the Government of the Republic, hereafter referred to as the Government, Ten billion pesos (P10,000,000,000) of which shall be fully paid for by the Government upon the effectivity of this Act and the balance to be paid for within a period of two (2) years from the effectivity of this Act in such manner and form as the Government, through the Secretary of Finance and the Secretary of Budget and Management, may thereafter determine.

Section 3. Responsibility and Primary Objective. - It shall have supervision over the operations of banks and exercise such regulatory powers as provided in this Act and other pertinent laws over the operations of finance companies and non-bank financial institutions performing quasi-banking functions, hereafter referred to as quasi-banks, and institutions performing

d) The Chairman of the Board of Governors of the

Rehabilitation Finance Corporation, whose alternate shall

be the ranking governor of said corporation.

e) Three other members, to be appointed for terms of six

years by the President with the consent of the Commission

on Appointments: Provided, however, That the first

members appointed under the provisions of this subsection

shall have terms of office of two, four and six years,

respectively.

Sec. 6. Vacancies.

Sec. 7. Qualifications

Sec. 8. Disqualifications

Sec. 9. Removal.

Sec. 10. Meetings. - The Monetary Board shall convene as

frequently as is necessary to discharge its responsibilities

properly, but shall meet at least once every two weeks.

Sec. 11. Attendance of the ranking deputy-governor and

the chief of the Department of Economic Research. - The

ranking deputy-governor of the Central Bank and the chief

of the Department of Economic Research shall attend the

meetings of the Monetary Board with the right to be heard

but not to vote.

Sec. 12. Remuneration of members for attending meetings

of the Board. - The amount of said per diem shall be set by

the President but may not exceed fifty (P50) pesos, nor the

sum of five hundred (P500) pesos for any single month.

Sec. 13. Withdrawal of persons having a personal interest

Sect. 14. Exercise of authority

Sec. 15. Responsibility

ARTICLE III

The Governor and Deputy-Governors of the Central Bank

Sec. 16. Powers and duties of the Governor

similar functions.

Section 4. Place of Business.

Section 5. Corporate Powers.

ARTICLE IITHE MONETARY BOARD

Section 6. Composition of the Monetary Board. - The powers and functions of the Bangko Sentral shall be exercised by the Bangko Sentral Monetary Board, hereafter referred to as the Monetary Board, composed of seven (7) members appointed by the President of the Philippines for a term of six (6) years.

The seven (7) members are:

(c) five (5) members who shall come from the private sector, all of whom shall serve full-time: Provided, however, That of the members first appointed under the provisions of this subsection, three (3) shall have a term of six (6) years, and the other two (2), three (3) years.

No member of the Monetary Board may be reappointed more than once.

Section 7. Vacancies.

Section 8. Qualifications. - The members of the Monetary Board must be natural-born citizens of the Philippines, at least thirty-five (35) years of age, with the exception of the Governor who should at least be forty (40) years of age, of good moral character, of unquestionable integrity, of known probity and patriotism, and with recognized competence in social and economic disciplines.

Section 9. Disqualifications. - The members of the Monetary Board coming from the private sector shall not hold any other public office or public employment during their tenure.

No person shall be a member of the Monetary Board if he has been connected directly with any multilateral banking or financial institution or has a substantial interest in any private bank in the Philippines, within one (1) year prior to his appointment; likewise, no member of the Monetary Board shall be employed in any such institution within two (2) years after the expiration of his term except when he serves as an official representative of the Philippine Government to such institution.

Sec. 17. Representation of the Monetary Board and the

Central Bank.

Sect. 18. Authority of the Governor in emergencies

Sect. 19. Outside interests of the Governor

Sect. 20. Remuneration of the Governor. - The salary of the

Governor of the Central Bank shall be fixed by the

Monetary Board with the approval of the President of the

Philippines, but in no case shall it exceed thirty thousand

pesos per annum.

Sect. 21. Deputy-Governor

Section 10. Removal. - The President may remove any member of the Monetary Board for any of the following reasons:

(b) If he is physically or mentally incapacitated that he cannot properly discharge his duties and responsibilities and such incapacity has lasted for more than six (6) months; or

Section 11. Meetings. - The Monetary Board shall meet at least once a week.

The Bangko Sentral shall maintain and preserve a complete record of the proceedings and deliberations of the Monetary Board, including the tapes and transcripts of the stenographic notes, either in their original form or in microfilm.

Section 12. Attendance of the Deputy Governors.

Section 13. Salary. - The salary of the Governor and the members of the Monetary Board from the private sector shall be fixed by the President of the Philippines at a sum commensurate to the importance and responsibility attached to the position.

Section 14. Withdrawal of Persons Having a Personal Interest.

Section 15. Exercise of Authority. - In the exercise of its authority, the Monetary Board shall:

(a) The rules and regulations issued shall be reported to the President and the Congress within fifteen (15) days from the date of their issuance;

(b) The legal units of the Bangko Sentral shall be under the exclusive supervision and control of the Monetary Board;

(c) establish a human resource management system which shall govern the selection, hiring, appointment, transfer, promotion, or dismissal of all personnel. Such system shall aim to establish professionalism and excellence at all levels of the Bangko Sentral in accordance with sound principles of management.

Section 16. Responsibility.

ARTICLE IIITHE GOVERNOR AND DEPUTY GOVERNORS OF THE BANGKO

SENTRAL

Section 17. Powers and Duties of the Governor. - The Governor shall be the chief executive officer of the Bangko

Sentral. His powers and duties shall be to:

(d) appoint and fix the remunerations and other emoluments of personnel below the rank of a department head in accordance with the position and compensation plans approved by the Monetary Board, as well as to impose disciplinary measures upon personnel of the Bangko Sentral, subject to the provisions of Section 15(c) of this Act: Provided, That removal of personnel shall be with the approval of the Monetary Board;

(e) render 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 Bangko Sentral and laws pertaining to quasi-banks, as well as regulations, policies or instructions issued by the Monetary Board, and the implementation thereof; and

Section 18. Representation of the Monetary Board and the Bangko Sentral. - The Governor of the Bangko Sentral shall be the principal representative of the Monetary Board and of the Bangko Sentral and, in such capacity and in accordance with the instructions of the Monetary Board, he shall be empowered to:

(d) delegate his power to represent the Bangko Sentral, as provided in subsections (a), (b) and (c) of this section, to other officers upon his own responsibility: Provided, however, That in order to preserve the integrity and the prestige of his office, the Governor of the Bangko Sentral may choose not to participate in preliminary discussions with any multilateral banking or financial institution on any negotiations for the Government within or outside the Philippines. During the negotiations, he may instead be represented by a permanent negotiator.

Section 19. Authority of the Governor in Emergencies. - The Governor shall submit a report to the President and Congress within seventy-two (72) hours after the action has been taken.

Section 20. Outside Interests of the Governor and the Full-time Members of the Board. - The Governor or the full-time member is tasked to represent the interest of the Government or other government agencies in matters connected with or affecting the economy or the financial system of the country.

Section 21. Deputy Governors. - The Governor of the Bangko Sentral, with the approval of the Monetary Board, shall appoint not more than three (3) Deputy Governors who shall perform duties as may be assigned to them by the Governor and

the Board.

Whenever the Government is unable to attend meetings of government boards or councils in which he is an ex officio member pursuant to provisions of special laws, a Deputy Governor as may be designated by the Governor shall be vested with authority to participate and exercise the right to vote in such meetings.

CHAPTERS 4-7 (Armel I. de Guzman)

RA 265 RA 7653

Section 71. Means of Action.

Objective of the national monetary policy "Section 68. Means of Action. - "...primary objective of price stability

Operations of Gold and Foreign Exchange;

. The Monetary Board may also impose conditions under which gold in any shape or form may be acquired and held, transported, melted or treated, imported, exported, earmarked or held in custody for foreign or domestic account.

Regulation of Foreign Exchange Operations of the Banks

Central Bank may buy and sell foreign notes and coins, and documents and instruments of types customarily employed for the international transfer of funds. The Bank may engage in future exchange operations.

The purpose of the of buying/selling foreign exchange is to keep adequate foreign reserve and maintqain the stabilit and cinvertibility of the peso.

Loans to Banking and other Financial Institutions;

In the periods of inflation, or as long as inflationary dangers exist, the Central Bank shall refrain from extending credit to banks and at such times shall grant credit only in exceptional cases where special circumstances [are justified]

The rediscounts, discounts, loans and advances, which the Bangko Sentral is authorized to extend to banking institutions, shall be used to influence the volume of credit consistent with the objective of price stability.

NORMAL CREDIT OPERATIONS

Production credits. - The Central Bank may rediscount, discount, buy and sell bills, acceptances, promissory notes and other credit instruments having maturities of not more than 270 days from the date of their rediscount, discount or acquisition by the Central Bank and resulting from transactions related to the production or processing of agricultural, animal, mineral or industrial products.

Production credits. - The Bangko Sentral may rediscount, discount, buy and sell bills, acceptances, promissory notes and other credit instruments having maturities of not more than three hundred sixty (360) days from the date of their rediscount, discount or acquisition by the Bangko Sentral and resulting from transactions related to the production or processing of agricultural, animal, mineral, or industrial products.

shall be secured by a pledge of the respective crops or products.

need not be pledged to secure the documents if the original loan granted by the Bangko Sentral is secured by a lien or mortgage on real estate property

Other credits Special credit instruments not otherwise rediscountable under the immediately preceding subsections (a) and (b)

may be eligible for rediscounting in accordance with rules and regulations which the Bangko Sentral shall prescribe. Whenever necessary, the Bangko Sentral shall provide funds from non-inflationary sources: Provided, however, That the Monetary Board shall prescribe additional safeguards for disbursing these funds. (sec. 82 (c))

Open Market Operations

exclusively for the purpose of achieving the objectives of the national monetary policy and shall be limited to the operations authorized

shall be made exclusively in accordance with its primary objective of achieving price stability.

Bank Reserves The required reserves of each bank shall be proportional to the volume of its deposit liabilities and shall ordinarily take the form of a deposit in the Central Bank of the Philippines

". . .the Monetary Board may, at its discretion, also require all banks and/or quasi-banks to maintain reserves against funds held in trust and liabilities for deposit substitutes as defined in this Act. The required reserves of each bank shall be proportional to the volume of its deposit liabilities and shall ordinarily take the form of a deposit in the Bangko Sentral. "

The Monetary Board is authorized to prescribe and modify the minimum reserve ratios applicable to each class of peso deposits: Provided, however, That such ratios shall not be less than five per cent (5%) or more than twenty-five per cent (25%) for time and saving deposits, and shall not be less than ten per cent (10%) or more than fifty per cent (50%) for demand deposits.Whenever the reserve requirements established by the Monetary Board place any bank under obligation to maintain minimum reserves in excess of twenty-five per cent (25%) of its total time or savings deposits, or in excess of fifty per cent (50%) of its total demand deposits, the Central Bank may pay interest on said excess at a rate which shall not be higher than the Bank’s lowest rediscount rate.

Selective Regulation of Bank Operations

Representation with Other Financial Institutions.

The President may, however, designate any of his other financial advisors to jointly represent the Government in such dealings, negotiations or transactions.

Official Deposits. The Bangko Sentral may pay interest on deposits of the Government or of its political subdivisions and instrumentalities, as well as on deposits of banks with the Bangko Sentral.

5. THE MONETARY BOARD

The New Central Bank Act (RA 7653)CHAPTER I

ESTABLISHMENT AND ORGANIZATION OF THE BANGKO SENTRAL NG PILIPINAS

ARTICLE II - THE MONETARY BOARD

SECTION 6. Composition of the Monetary Board — The powers and functions of the Bangko Sentral shall be exercised by

the Bangko Sentral Monetary Board, hereafter referred to as the Monetary Board, composed of seven (7) members appointed by the President of the Philippines for a term of six (6) years.

The seven (7) members are:

(a) the Governor of the Bangko Sentral, Whenever the Governor is unable to attend a meeting of the Board, he shall designate a Deputy Governor to act as his alternate.

(b) a member of the Cabinet to be designated by the President of the Philippines; and

(c) five (5) members who shall come from the private sector, all of whom shall serve full-time:

SECTION 8. Qualifications. — The members of the Monetary Board must be natural-born citizens of the Philippines, at least thirty-five (35) years of age, with the exception of the Governor who should at least be forty (40) years of age, of good moral character, of unquestionable integrity, of known probity and patriotism, and with recognized competence in social and economic disciplines.

The major functions of the Monetary Board include the power to:

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;

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

GOVERNORSTerm started Term finished NameGovernors of the Central Bank1949 1960 Miguel Cuaderno, Sr.1961 1967 Andres V. Castillo1968 1970 Alfonso Calalang1970 1981 Gregorio S. Licaros1981 1984 Jaime C. Laya1984 1990 Jose B. Fernandez, Jr.1990 1993 Jose L. Cuisia, Jr.

Governors of the Bangko Sentral1993 1999 Gabriel C. Singson1999 2005 Rafael B. Buenaventura2005 present Amando M. Tetangco, Jr.

THE GOVERNORAmando M. Tetangco, Jr. assumed office as Governor of the Bangko Sentral ng Pilipinas in July 2005. He is a career central banker. He was Deputy Governor in-charge of the Banking Services Sector, Economic Research and Treasury.

Chairman of :Monetary BoardAnti-Money Laundering Council (AMLC)Philippine International Convention Center (PICC)

Vice-Chairman of:Agriculture Credit Policy Council (ACPC)

Member of:Capital Market Development Council (CMDC)

Export Development Council (EDC)PhilExport Board of Trustees (PHILEXPORT)Philippine Export-Import Credit Agency (PHILEXIM)

Director of:Philippine Deposit Insurance Corporation (PDIC)National Development Council (NDC)National Home Mortgage Finance Corporation (NHMFC).

He represents the country in various international and regional organizations, including:Executive Meeting of East Asia and Pacific (EMEAP) Central BanksASEAN and ASEAN+3South East Asia Central Banks (SEACEN)South East Asia, New Zealand and Australia (SEANZA)Center for Latin American Monetary Studies (CEMLA)Asia-Pacific Economic Cooperation (APEC)

He is the Governor for the Philippines in the International Monetary Fund (IMF) and the Alternate Governor in the World Bank (WB) and in the Asian Development Bank (ADB).

Before joining the Central Bank of the Philippines in 1974, Mr. Tetangco was connected with the Management Services Division of accounting firm SGV & Co.

Mr. Tetangco took up AB Economics at the Ateneo de Manila University where he graduated cum laude. He took up graduate courses in business administration in the same institution. As a central bank scholar, Mr. Tetangco took up his MA in Public Policy and Administration at the University of Wisconsin in Madison, USA. Earlier, he finished his elementary and high school education at Don Bosco Academy in Pampanga.

Mr. Tetangco is married to Elvira Ma. Plana. They have three children: a son and two daughters.

Current members of the Monetary Board are:Chairman Amando M. Tetangco, Jr.Members Cesar V. Purisima

Juanita D. AmatongNelly Favis-VillafuerteAlfredo C. AntonioIgnacio R. BunyePeter B. Favila

ORGANIZATIONAL STRUCTURE OF THE BANGKO SENTRAL NG PILIPINASAND FUNCTIONS OF EACH DEPARTMENT

The BSP's Organizational Structureas of June 2009

THE EXECUTIVE MANAGEMENT SERVICES

Monetary Board1. Office of the Secretary, Monetary Board

Provides administrative and secretarial services to the Monetary Board.

2. Office of the General Counsel and Legal Services Prepares opinions and rulings for the MB relating to policies, functions, operations and regulations of

the Bank; and

Prosecutes or defends cases involving the BSP, the MB, and Management in judicial and administrative proceedings.

3.Office of Special Investigation Evaluates bank irregularities and anomalies

4.Internal Audit Office Monitors the internal control system of the BSP; Monitors utilization of security materials, disposal of production wastes, and receipt of gold and other

precious metals at the SPC.

Governor5. Treasury Department

Manages the BSP’s international reserves Undertakes open market operations and transacts with accredited government securities dealers; and Participates in the Philippine Dealing System to ensure the competitiveness of the Philippine peso and

its convertibility into other acceptable foreign currencies.

6. Systems and Methods Office Ensures a well organized and integrated bankwide effort to develop and maintain efficient systems and

procedures; and provides recommendations along the areas of manualization, business process reengineering, and systems support.

7.Corporate Planning Office Provides technical support to Management in the formulation and application of strategic plans and

practices and in the development of guidelines/policies in preparation for departmental work plans.

8.BSP Staff in the Anti-Money Laundering Council Secretariat Assists the Anti-Money Laundering Council in implementing the provision of the Anti-Money

Laundering Law, otherwise known as Republic Act 9160; Receives transaction reports from covered institutions, investigates suspicious transactions, and

causes the filing of complaints with the Department of Justice or the Ombudsman for the prosecution of money laundering offenses

Money Laundering is the practice of disguising the origins of illegally-obtained money.

The AMLC is composed of the Governor of the Bangko Sentral as Chairman and the Commissioner of the Insurance Commission and the Chairman of the Securities and Exchange Commission as members. It acts unanimously in the discharge of its functions.

9.Risk Management Office Aggregates the various risk exposures of the Bank; Identifies appropriate risk control measures; and Ensures that appropriate risk management practices are being implemented at all times.

10.Corporate Affairs Office Implements the public relations and advertising programs of the BSP to promote and enhance its

corporate image.

FUNCTIONAL SECTORSThe Monetary Stability Sector

1.Investor Relations Office Assists in developing stronger relations with the international financial community and promotes the

Philippines as an investment site.

Monetary Policy Sub-sector1. Department of Economic Research

Acts as the principal policy research and technical arm of the Bank

2. Department of Economic Statistics Generates statistics for the guidance of the Monetary Board in the formulation and implementation of

its policies.

3. Center for Monetary and Financial Policy Conducts cutting-edge empirical and theoretical researches in the monetary, financial and economic

fields.

4. Economic and Financial Learning Center Serves as the primary and central source of the Bank in providing timely and relevant information

concerning economic and financial matters

International Sub-sector1. International Relations Department

Monitors and analyzes regional and global economic, financial, and trade development issues, assesses

their impact on the Philippine economy, and submits reports, updates, and recommendations on positions and policy stance of the BSP thereon.

2. International Operations Department Supports the promotion and maintenance of monetary stability and external sustainability through the

enhanced management of external debt, foreign investments and other foreign exchange transactions.

Regional Monetary Affairs Sub-sector Monitors and coordinates of the operation of the Bank’s branches in the countryside The BSP has three regional offices and 18 branches performing cash operations, cash administration,

loans and rediscounting, bank supervision and gold buying operations. The following BSP branches report directly to the Regional Monetary Affairs Sub-sector:

• Legazpi Branch• Lucena Branch• Naga Branch

BSP Regional Offices1. La Union Regional Office - supervises the following branches in Luzon:• Angeles Branch• Cabanatuan Branch• Dagupan Branch• Tuguegarao Branch• Batac Branch

2.Cebu Regional Office – supervises the following branches in the Visayas:• Bacolod Branch• Dumaguete Branch• Iloilo Branch• Kalibo Branch• Tacloban Branch

3.Davao Regional Office – supervises the following branches in Mindanao:• Cagayan de Oro Branch• Cotabato Branch• General Santos Branch• Ozamis Branch• Zamboanga Branch

Monetary Operations Sub-sector1.Asset Management Department

Administers, preserves, and disposes assets acquired or foreclosed properties by the Bangko Sentral in payment for loans secured by banks.

2.Department of Loans and Credit Implements the credit policies of the BSP; Extends loans and advances to banks and rediscounts; Conducts credit examination of banks; and Undertakes special studies on credit policies.

Currency Management Sub-sector1.Cash Department

Supplies and issues the currency requirements of the banking industry and services the currency exchange

2.Currency Issue and Retirement Office Manages the retirement of unfit/mutilated currencies withdrawn from circulation; and Safekeeps unissued notes and coins.

FUNCTIONAL SECTORSThe Supervision and Examination Sector

1.Inclusive Finance Advocacy Staff Focuses on advocacy work with financial institutions to promote sustainable methods in the delivery of

microfinance and the small and medium enterprise banking services.

2.Central Administrative Services Group Undertakes sector wide services relating to personnel, budget and finance, records, facilities, property

and supplies, and frontline services administration of the SES.

Central Supervisory Support Sub-sector1. SES Operations Management Group

Assesses the training needs and capacity development requirements of the SES personnel.

2.Central Applications and Licensing Group Evaluates requests of banks and non-banks which require approval of the BSP on matters such as the

establishment of banks, branching, equity investment outsourcing and in-sourcing, cross-selling, cash or stock dividend declaration, issuance of the Foreign Currency Deposit Unit and quasi-banking licenses, acceptance of government deposits, issuance of long-term negotiable certificates of deposits, offering demand deposit accounts, amendment of articles of incorporation and/or by-laws; and other similar standardized tasks.

3. Financial Consumer Affairs Group Conducts advocacy initiatives aimed at educating and supporting the interest of the public on financial

literacy issues.

4.Office of Supervisory Policy Development Functions as central policy research and development unit of the SES.

5.Supervisory Data Center It is responsible for developing and maintaining the financial system databases of the Sector in a state-

of-the-art data warehouse environment.

Supervision and Examination Sub-sector I1.Core Information Technology Specialist Group

Conducts information technology (IT) supervision and examination of banks and non-bank financial institutions (FIs), including payments systems.

2.Trust Specialist Group Specializes in examining risk exposure which may arise from the trust, other fiduciary business, and

investment management activities of FIs.

3.Capital Markets Specialist Group Specializes in the supervision and examination of capital market activities of BSP-supervised financial

institutions (FIs) including treasury operations, market and liquidity risk management, and trading of capital market products such as derivatives and complex structured products.

4.Anti-Money Laundering Specialist Group Develops guidelines and regulations to support the anti-money laundering efforts of BSP-supervised

financial institutions

5.Micro, Small and Medium Enterprise Finance Specialist Group Focuses on the specialized risk-based supervision and examination requirements of banks which have

adopted a banking business model dedicated to or highly exposed to the micro, small and medium enterprises.

6.Examination Departments I, II, and III Conduct on-site examination of universal banks and their subsidiaries/affiliates, commercial banks and

their subsidiaries/affiliates, foreign banks and their subsidiaries/affiliates, thrift and rural banks.

Supervision and Examination Sub-sector II1.Integrated Supervision Department I

Monitors and supervises cooperative banks and non-bank financial institutions, including investment houses with quasi-banking and/or trust license and non-stock savings and loan associations (NSSLAs).

2.Integrated Supervision Department II Conducts supervision and examination of selected banks and non-bank FIs.Supervision and Examination Sub-sector III1.Regional Supervisory Services Divisions I and II (Cebu and Davao)

Serve as the focal point of contact between the SES main office and the local banks and their customers in the region.

2.Central Point of Contact Department I (CPCD I) Supervises banking groups and large banks that have complex operations and dynamic risk profiles.

FIs under CPCD I include large private universal/commercial banks, government banks, foreign banks, and large thrift banks that operate on a national scale.

3.Central Point of Contact Department II (CPCD II) Supervises banks operating on a regional and local level that comprise the overwhelming majority of the players

in the banking system. Banks under CPCD II include region and community-based thrift and rural banks, including microfinanceoriented banks.

The Resource Management Sector

1.Provident Fund Office Implements the rules/regulations governing the administration of the Provident and Housing Funds

and carries out the policies and directives adopted by the Board of Trustees of the Provident Fund; and Manages the Funds’ investment portfolio and the earnings derived from it.

2.Crisis Management Office Establishes and maintains a BSP Bankwide Master Crisis Plan considering linkages and inter-

operability of all departmental crisis plans.

3.Payments and Settlements Office Ensures the smooth flow of the country’s payments and settlements system through the Philippine

Payments and Settlements System.

Management Services Sub-sector1.Administrative Services Department

Manages and performs property control, issuance of real and movable properties, warehousing,

records management, printing of bank circulars/internal issuances/forms, mail distribution and telephone switchboard operations.

2.Facilities Management and Engineering Department Ensures the general upkeep of the whole BSP Main Building Complex and premises; and Manages the operations and maintenance of all mechanical, electrical, electronic and

auxiliary/accessory equipment systems of the Bank.

3.Project Development and Management Office Supervises the renovation and construction of all offices and buildings of the BSP and the Philippine

International Convention Center (PICC).

4.Procurement Office Supports the Bids and Awards Committee; Assists approving authorities in the implementation of awards; and Keeps updated list of registered suppliers.

5.Security, Investigation and Transport Department Protects and safeguards installations, property, currency, documents/information and personnel of the

BSP main office and the Security Plant Complex as well as its field offices against loss through robbery, theft and other crimes, fire, natural and manmade hazards;

Provides security to currency shipments of the BSP; and Provides transport services; maintains the fleet of motor vehicles; operates the Bank’s Motor Pool.

Comptrollership Sub-sector1.Budget Planning and Special Studies Group

Serves as technical staff of the BSP Budget Committee in the formulation of budget guidelines, preparation of budget forms and dissemination of information to different departments/offices/committees of the Bank;

Reviews and analyzes budgetary estimates of income and expenses and proposals for capital expenditures and asset acquisitions submitted by the Sector Heads.

2.Financial Accounting Department Performs the accounting/bookkeeping, budget administration and disbursement activities of the Bank.

Human Resource Sub-sector1.Human Resource Development Department

Implements a competency-based human resource system; Manages the development of the organization and its human capital by improving organizational

performance through change and development, and organizational planning and staffing; and Facilitates the attainment of individual employees' goals and those of the Bank through career and

succession management, talent development and personnel selection and placement.

2.Human Resource Management Department Delivers human resource services such as recruitment, appointment, performance evaluation,

compensation and benefits, payroll, leave and retirement and employee relations.

3.Bangko Sentral ng Pilipinas Institute Acts as the training arm of the BSP; Assesses the training needs of all Bank personnel; and Designs and administers various executive development/values enhancement courses, seminars or

workshops for personnel of the BSP as well as personnel of certain segments of the financial system on a continuing basis

4.Medical and Dental Clinic Provides medical and dental services such as consultations and treatments.

Information Technology Sub-sector1.Policy Standards and Planning Group

Establishes, monitors, and updates specific standards in the acquisition, development and implementation of application systems.

2.Enterprise Systems and Project Development Staff Provides enterprise IT solutions and close support to critical, technical and program management

projects, from design, operations, and system evolution.

3.IT Infrastructure and Operations Department Manages the computer environment of the Bank and ensures the efficient operation of all

communication and technology infrastructure.

4.Information Systems Support and Development Department Develops and maintains appropriate business or application software that enhances the effectiveness

and efficiency of operations of various departments/offices in the Bank.

The Security Plant Complex

The Security Plant Complex (SPC) was formally established on September 7, 1978 to safeguard the printing/minting/refining, issuance, distribution and durability of coins, banknotes, gold bars, government official receipts, lottery tickets, internal revenue stamps, passports, seaman identification record books, strip stamps, official documents, registration certificates, Torrens titles, treasury warrants, stocks and bonds, government contracts, ration coupons, official ballots, election return forms, checks and other security printing or minting jobs of the Philippine government. Later on, printing of official ballots and other public documents were transferred to the National Printing Office (NPO) pursuant to Executive Order No. 285 issued on July 25, 1987. On August 4, 2003, President Gloria Macapagal-Arroyo issued Administrative Order No. 79, it designates the SPC to be sole manufacturer of presidential medals and decorations.

1.Research and Development Group Conducts research and development studies on various aspects of the operations of the Security Plant

Complex (SPC), especially on banknote printing and coin minting operations.

2.SPC Financial Services and Data Management Group Prepares financial statements and consolidates cash flows, income statements and balance sheets for

SPC; Records financial receipts and disbursements and processes bills for payment.

3.Banknotes Securities and Printing Department Manages and performs the printing of banknotes and other security documents (i.e. passports and land

titles).

4.Mint and Refinery Operations Department Manages and performs the minting of coins, commemorative medals, and refines gold purchased from

local panners/miners.

5.Department of General Services Manages the procurement of supplies, equipment, and services for the SPC and the general

maintenance and upkeep of its facilities.

The Bangko Sentral has 18 currencies directly convertible with the Philippine Peso,which serves as a benchmark for all Philippine banks.

Australian Dollar (AUD) Bahraini Dinar (BHD) British Pound (GBP) Brunei Dollar (BND) Canadian Dollar (CAD) Chinese Yuan (CNY) Euro (EUR) Hong Kong Dollar (HKD) Indonesian Rupiah (IDR)

Japanese Yen (JPY) Korean Won (KRW) Libyan Dinar (LYD) Saudi Riyal (SAR) Singapore Dollar (SGD) Swiss Franc (CHF) Thai Baht (THB) United Arab Emirates Dirham (AED) United States Dollar (USD)

Name, Position and DepartmentAmando M. Tetangco, Jr.Governor and Chairman of the Monetary Board

Juanita D. AmatongMonetary Board Member

Alfredo C. Antonio Monetary Board Member

Ignacio R. Bunye Monetary Board Member

Peter B. Favila Monetary Board Member

Cesar V. Purisima Monetary Board Member

Nelly F. Villafuerte Monetary Board Member

Nestor A. Espenilla, Jr.Deputy GovernorSupervision and Examination Sector

Diwa C. GuinigundoDeputy GovernorMonetary Stability Sector

Juan De Zuniga, Jr.Deputy GovernorResource Management Sector

Vicente S. Aquino

Executive DirectorAnti-Money Laundering Council Staff

Ma. Corazon J. Guerrero Assistant Governor Supervision and Examination Sub-Sector II

Ma. Ramona Gertrudes D.T. SantiagoAssistant Governor Treasury Department

Ma. Almasara Cyd N. Tuano-AmadorAssistant Governor Monetary Policy Sub-Sector

Ma. Dolores B. Yuvienco Assistant GovernorSupervision and Examination I

Manuel H. TorresAssistant Governor Security Plant Complex

Willie S. AstoManaging DirectorComptrollership Sub-Sector

Teresita S. Bulseco Managing DirectorInformation Technology Sub-Sector

Augusto C. Lopez-Dee Managing DirectorMonetary Operations Sub-Sector

Wilhelmina C. Mañalac Managing Director International Sub-Sector

Johnny Noe E. Ravalo Managing DirectorCentral Supervisory Support Sub-Sector

Leny I. SilvestreManaging DirectorSupervision and Examination Sub-Sector III

Gerardo S. TisonManaging Director Human Resource Sub-Sector

Pedro P. Tordilla, Jr. Managing DirectorRegional Monetary Affairs Sub-Sector

Ma. Odilia B. Del Castillo Officer-in-ChargeManagement Services Sub-Sector

Violeta F. Mejia Officer-in-ChargeCurrency Management Sub-Sector

Zeno Ronald R. Abenoja DirectorEconomic and Financial Learning Center

Geraldine C. Alag DirectorAsset Management Department

Patria B. Angeles DirectorInternational Operations Department

Ma. Lux T. Berciles DirectorBSP Cebu Regional Office

Vincent Z. Bolivar Deputy General CounselOffice of the General Counsel & Legal Services

Fernando B. Caballa DirectorIntegrated Supervision Department I

Elmore O. CapuleDeputy General Counsel Office of the General Counsel and Legal Services

Demetrio E. Casipong DirectorBSP Davao Regional Office

Aaron G. Cervantes DirectorFacilities Management & Engineering Department

Antonio B. Cintura DirectorDepartment of Economic Research

Loida D. Cruz Director Human Resource Management Department

Restituto C. Cruz DirectorExamination Department I

Francisco G. Dakila, Jr. DirectorCenter for Monetary & Financial Policy

Fe M. Dela Cruz DirectorCorporate Affairs Office

Vicente T. De Villa, III DirectorSupervisory Data Center

Elvira E. Ditching-Lorico DirectorHuman Resource Development Department

Enrique C. Domingo DirectorProcurement Office

Rosalinda S. DumaliangDirectorDepartment of Loans and Credit

Rogelio A. Encinas DirectorExamination Department III

Ma. Regina R. Fajardo Director & Chief Risk Officer Risk Management Office

Claro P. Fernandez Excutive Director I Investor Relations Office

Chuchi G. Fonacier DirectorIntegrated Supervision Department II

Gail U. Fule DirectorCentral Point of Contact Department II

Victor G. Garlitos

DirectorProvident Fund Office

Edgar C. Gatumbato DirectorSecurity, Investigation & Transport Department

Rosabel Guerrero Director 1/Department of Economic Statistics

Benjamin P. Gulapa Head Executive Assistant Office of the Governor

Dahlia D. Luna DirectorProject Development Management Office

Arturo C. Manuel Director Department of General Services

Thomas Benjamin B. Marcelo DirectorInternational Relations Department

Rowena S. MartinezDirectorOffice of the Monetary Board/Secretary to the MB

Helen P. Montalbo DirectorCorporate Planning Office

Lagrimas R. Nuqui DirectorInternal Audit Office

Carlyn A. Pangilinan DirectorBSP Institute

Alfonso C. Penaco, IV DirectorOffice of Special Investigation

Primo B. QuetulioDirector BSP La Union Regional Office

Alberto A. Reyes DirectorExamination Department II

Nestor B. Salanio DirectorBanknotes & Securities Printing Department

Teodora I. San Pedro Director

Office of Supervisory Policy Development

Bella S. Santos DirectorPayments and Settlements Office

Carlos O. SantosDirectorIT Infrastructure & Operations Department

Iluminada T. Sicat 2/Director Department of Economic Statistics

Susan Y. Sison Medical Officer VII Medical and Dental Clinic

Judith E. Sungsai DirectorCentral Point of Contact Department I

Virgilio P. Tiongson DirectorFinancial Accounting Department

Edna C. Villa DirectorOffice of the Governor

Alphew T. Cheng Officer-in-ChargeTreasury Department -FXOMOG

Nanette A. Ella Officer-in-ChargeMint & Refinery Operations Department

Pauline Therese D. Eusebio Officer-in-ChargeAdministrative Services Department

Antonio A. Grageda Officer-in-ChargeCrisis Management Office

Catherine B. Regala Officer-in-ChargeSystems & Methods Office