01 Flashcards
a public institution that is responsible for implementing monetary policy, managing the currency of a country, or a group of countries, and controlling the money supply
central bank
a central bank is a public institution that is responsible for implementing what?
- monetary policy
- managing the currency of a country or group of countries
- controlling the money supply
what are the main responsibilities of central banks
- defining monetary policy
- regulating money in circulation
- overseeng the inter-bank market
- loaning liquidity to commercial banks if necessary for solvency issues
- taking on an advisory role
defining monetary policy
main responsibilities of central banks
regulating money in circulation
main responsibilities of central banks
overseeing the inter-bank market
main responsibilities of central banks
loaning liquidity to commercial banks if necessary for solvency issues
main responsibilities of central banks
taking on an advisory role
main responsibilities of central banks
in 1933, what happened?
the system of central banking was conceptualized in the Philippines by a group of Filipino
what year did the system of central banking was conceptualized in the Philippines by a group of Filipino?
1933
the Philippine independence bill approved by the US Congress
Hare-Hawes Cutting Bill
the first governor of the central bank of the philippines
Miguel Cuaderno
what is Hare-Hawes Cutting Bill
the Philippine independence bill approved by the US Congress
In 1939, what happened?
- Tydings McDuffie Act.
- The Philippines legislature passed a law establishing a central bank
- As it was a monetary law, however, President Franklin D. Roosevelt disapproved it.
what year Tydings McDuffie Act
1939
what year The Philippines legislature passed law establishing a central bank
1939
As it was a monetary law, however President Franklin D. Roosevelt disapproved it
1939, philippine legislature passed a law establishing a central bank
what happened in 1944
second law was passed during the Japanese occupation
what year did the second law was passed during the Japanese occupation
1944
what happend in 1946
- a joint Philippine-american finance commission was created to study the philippine currency and banking system
- President Manuel Roxas instructed the sec. Miguel Cuaderno to drew up the charter of the central bank. he chose the charter of the central bank of Guatemala
what year did the joint of Philippine-American Finance Commision was created to study the Philippine currency and banking system
1946
what year did President Manuel Roxas instructed sec. Miguel Cuaderno to drep up the charter of the central bank and then he chose the charter of the central bank of guatemala
1946
what happend in 1947
result of joint of the Philippine-American Finance Commission = they recommended to shift to a dollar exchange standard system
what year did the result of joint of the Philippine-American Finance Commission recommended to shift to a dollar exchange standard system
1947
what happend in feb 1948
President Manuel Roxas submitted a bill “Establishing the Central Bank of the Philiippines”
what year did President Manuel Roxas submitted a biill “Establishing the Central Bank of the Philippines”
Feb 1948
what happned in jan 3, 1949
the central bank of the Philippines was inaugurated and formally opened with Hon. Miguel Cuaderno as the first governor
what date did the central bank of the Philippines was inaugurated and formally opened with Hon. Miguel Cuaderno as the first governor
Jan 3, 1949
what is monetary policy?
- the macroeconomics policy laid down by the central bank
- involves management of money supply and interest rate and is the deman dside economic poicy used by the government of a country
- to achieve macroeconomic objectives like inflation, consumption, growth, and liquidity
the macroeconomics policy laid down by the central bank
monetary policy
involves management of money supply and interest rate and is the deman dside economic poicy used by the government of a country
monetary policy
to achieve macroeconomic objectives like inflation, consumption, growth, and liquidity
monetary policy
monetary policy objectives
- price stability
- full employment
- economic growth
what is banking policy?
- involves regulations and oversight of the banking sector to ensure its stability and proper functioning
- these aim policies to aim to safeguard consumers, prevent financial crises, and promote a fair and competitive banking environment
involves regulations and oversight of the banking sector to ensure its stability and proper functioning
banking policy
these aim policies to aim to safeguard consumers, prevent financial crises, and promote a fair and competitive banking environment
banking policy
what could be done to achieve price stability
- open market operations
- acceptanc of terms deposits
- standing liquidity facilities
- other liquidity management facilities
fiscal policy?
- use of government spending and taxation to influence the economy
- typically used to promote strong and sustainable growth and reduce poverty
use of government spending and taxation to influence the economy
fiscal policy
typically used to promote strong and sustainable growth and reduce poverty
fiscal policy
types of fiscal policy
- contractionary policy
- expansionary policy
Government increases spending or decreases taxes to stimulate economic growth.
expansionary fiscal policy
Government reduces spending or increases taxes to cool down an overheated economy and control inflation
contractionary fiscal policy
what are the fiscal functions
- allocation
- distribution
- stabilization
- economic growth
what is the monetary board
- responsible for creating all the policy related to the adminisration, operation, and management of the Central Bank
- is the one responsible for exercising the powers and functions of the BSP, such as the conduct of monetary policy and supervision of the financial system
responsible for creating all the policy related to the adminisration, operation, and management of the Central Bank
monetary board
is the one responsible for exercising the powers and functions of the BSP, such as the conduct of monetary policy and supervision of the financial system
monetary board
members of the monetary board
- government of the Central Bank
- The secretary of finance
- % other members
what are monetary tools
- are tools to utilized to regulate both the supply and demand for money in the economy as well as the sectoral flow of credit in the financial system
are tools to utilized to regulate both the supply and demand for money in the economy as well as the sectoral flow of credit in the financial system
monetary tools
what are open market operations
- these involve the buying and selling of government securities
- the Repurchase Window is basically a credit facility whereby and/or non-banks temporarily sell their holding of Bangko Sentral Certificate of Indebtness (BSCIS) and other government securities to the Bangko Sentral
- a variant of these tool is the “reverse Repurchase Window” whereby the Bangko Sentral is the seller of securities on a buy-back agreement
these involve the buying and selling of government securities
open market operations
the Repurchase Window
basically a credit facility whereby and/or non-banks temporarily sell their holding of Bangko Sentral Certificate of Indebtness (BSCIS) and other government securities to the Bangko Sentral
basically a credit facility whereby and/or non-banks temporarily sell their holding of Bangko Sentral Certificate of Indebtness (BSCIS) and other government securities to the Bangko Sentral
the Repurchase Window
(BSCIS)
Bangko Sentral Certificate of Indebtness
a variant of these tool is the “reverse Repurchase Window” whereby the Bangko Sentral is the seller of securities on a buy-back agreement
open market operations
To promote and maintain price stability, a strong financial system, and a safe and efficient payments and settlements system conducive to a sustainable and inclusive growth of the economy
BSP mission
BSP mission
To promote and maintain price stability, a strong financial system, and a safe and efficient payments and settlements system conducive to a sustainable and inclusive growth of the economy
The BSP aims to be recognized globally as the monetary authority and primary financial system supervisor that supports a strong economy and promotes a high quality of life for all Filipinos
BSP vision
BSP vision
The BSP aims to be recognized globally as the monetary authority and primary financial system supervisor that supports a strong economy and promotes a high quality of life for all Filipinos
objectives of bsp
- maintain price stability conducive to a balanced and sustainabble growth of the economy and employment
- shall also promote and maintain monetary stability and the convertibility of the peso
- shall promote financial stability and closely work with the National Government, including, but not limited to, the Department of Finance, Securities and Exchange Commission, the Insurance Commission, and the Philippine Deposit Insurance Corporation
- oversee the payment and settlement systems in the Philippines, including critical financial market infrastructures, in order to promote sound and prudent practices consistent with the maintenance of financial stability
- shall promote broad and convenient access to high-quality financial services and consider the interest of the general public
maintain price stability conducive to a balanced and sustainabble growth of the economy and employment
objectives of bsp
shall also promote and maintain monetary stability and the convertibility of the peso
objectives of bsp
shall promote financial stability and closely work with the National Government, including, but not limited to, the Department of Finance, Securities and Exchange Commission, the Insurance Commission, and the Philippine Deposit Insurance Corporation
objectives of bsp
oversee the payment and settlement systems in the Philippines, including critical financial market infrastructures, in order to promote sound and prudent practices consistent with the maintenance of financial stability
objectives of bsp
shall promote broad and convenient access to high-quality financial services and consider the interest of the general public
objectives of bsp
core values
- excellence
- patriotism
- integrity
- solidarity
- accountability
principal elements of BSP
- three stars
- the philippine eagle
- round shape
- font
roles of the BSP
- operator of the real-time gross settlement known as PhilPaSS
- Provider of credit facilities to banks as a lender of last resort = Intraday Liquidity Facility (ILF), Overdraft Credit Line (OCL)
- overseer of the payments and settlements system
- user of its own RTGS system
- initiate changes/reforms for the payments system
BSP function
- Bank of Issue
- Government’s Banker, Agent, and Adviser
- Custodian of the Cash Reserves of Banks
- Custodian of the Cash Nation’s Reserves of International Currency
- Bank Rediscount and Lender of Last Resort
- Controller Credit
The establishment and organization of the Bangko Sentral ng Pilipinas is mandated according to
Republic Act No. 7553 (New
Central Bank Act).
Republic Act No. 7553
(New Central Bank Act).
is mandated according to Republic Act No. 7553 (New Central Bank Act).
The establishment and organization of the Bangko Sentral ng Pilipinas
characteristics of central bank
- Monetary Authority
- Regulator and Financial Advisor of Financial System
- Manager of Foreign Exchange
- Issuer of Currency
- Place of the Profit Motive
- Central Bank Independence
acitivities of the central bank
- Supervision/Pawnshop Regulation
- External Debt Regulation
- Money Market Involvement
- Foreign Exchange Regulation
- Export Related Measures
- Workers Remittances
present officers of the monetary board
- Benjamin E. Diokno
- V. Bruce J. Tolentino
- Anita Linda R. Aquino
- Romeo L. Bernardo
- Rosalia V. de Leon
chairman of the monetary board and governor
Eli M. Remolona, Jr.
present officers of the deputy governors
- Francisco G. Dakila, Jr. - monetary and economics sector
- Chuchi G. Fonacier - financial supervision sector
- Mamerto E. Tangonan - payments and currency mangement sector
- Eduardo G. Bobier - corporate services sector
- Bernadette Romulo-Puyat - regional operations and advocacy sector
senior assistant governors
- Elmore O. Capule - office of the general counsel and legal services
- Maria Ramona Gertrudes T. Santiago - financial markets
- Iluminada T. Sicat - monetary policy sub-sector
- Johny Noe Estanislao Ravalo - office of the systematic risk management
- Edna C. Villa - payments and currency development sub-sector
assistant governors/executive director ii
- Arifa A. Ala - finaical supervision sub-sector 3
- Lyn I. Javier - policy and specialized supervision sub-sector
- Matthew M. David - anti-money laundering council secretariat
- Mary Jane T. Chiong - internal audit office
- Laura L. Ignacio - bsp research academy
- Mary Anne P. Lim - currency and securities production sub-sector
