Notes: Bangko Sentral Ng Pilipinas (Overview and Background) PDF

COLLEGE OF BUSINESS ADMINISTRATION SILLIMAN UNIVERSITY Dumaguete City, 6200 Negros Oriental GROUP 1 BANGKO SENTRAL NG PILIPINAS (OVERVIEW AND BACKGROUND) Submitted to:...

COLLEGE OF BUSINESS ADMINISTRATION SILLIMAN UNIVERSITY Dumaguete City, 6200 Negros Oriental GROUP 1 BANGKO SENTRAL NG PILIPINAS (OVERVIEW AND BACKGROUND) Submitted to: Dr. Wilma M. Tejero-Libarios Submitted by: Gordoncillo, Arianne Rosette F. Manginsay, Abigail S. Nicolas, Rhona Marie P. Pfleider, Chinah Shanelle Superal, Ferren Rose Dianne A. Tanguan, Jane Dalyn May F. September 2024 I. ADDRESS: BSP Complex, Roxas Boulevard, Manila, Philippines II. COMPOSITION: (MONETARY BOARD) The Monetary Board is responsible for carrying out the duties and functions of the Bangko Sentral ng Pilipinas (BSP), including overseeing monetary policy and supervising the financial system. The BSP Governor serves as the chairman, alongside five full-time members from the private sector and one representative from the Cabinet. The Governor, as the chief executive officer of the BSP, is responsible for overseeing and managing the BSP's operations and internal administration. Chairman: Eli M. Remolona Jr. - Governor Members: Ralph G. Recto Romeo L. Bernardo Rosalia V. De Leon Walter C. Wassmer Benjamin E. Diokno Jose L. Querubin III. CORE FUNCTIONS OF BSP A. Price Stability Price stability refers to the maintenance of stable prices over time, with a target inflation rate that ensures the value of money remains relatively constant. Objective: The Bangko Sentral ng Pilipinas aims to maintain price stability by ensuring that inflation remains within a targeted range, which promotes economic predictability and fosters consumer confidence. By keeping prices stable, the BSP supports sustainable economic growth and encourages spending and investment, thus enhancing the overall economic environment. Tools: The BSP uses monetary policy tools like adjusting interest rates, setting reserve requirements for banks, and conducting open market operations to influence the money supply and achieve its inflation targets. B. Financial Stability or Stable Banking System Financial stability involves a resilient banking system that can withstand economic shocks, ensuring that financial institutions operate soundly and effectively. Objective: To ensure a stable banking system, the BSP focuses on preventing systemic risks that could threaten the financial landscape. This involves promoting the soundness of financial institutions through strong governance and risk management practices while safeguarding the interests of depositors to maintain public confidence in the banking sector. Tools: This includes supervising and regulating banks and financial institutions, conducting regular assessments of their financial health, and implementing measures to prevent systemic risks through capital requirements and liquidity support. C. Efficient Payments and Settlements System An efficient payments and settlements system ensures that financial transactions can be executed quickly, securely, and reliably. Objective: The BSP is committed to fostering an efficient payments and settlements system that facilitates fast, secure transactions vital for economic activity. This involves enhancing the security of payment systems to protect against fraud and cyber threats, as well as promoting financial inclusion through the adoption of digital payment methods. Tools: The BSP oversees and improves payment systems, promotes electronic payment methods, and develops infrastructure that allows for fast and secure clearing and settlement of transactions. IV. VISION, MISSION, AND CORE VALUES 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. Explanation: The BSP’s mission aims to emphasize the institution's responsibility to ensure stable prices, which is crucial to avoid inflation or deflation. BSP also provides proactive leadership in the creation of an efficient financial system conducive to balanced and sustainable economic growth. To this purpose, it shall conduct sound monetary policy and effective supervision over the financial institution under authority. 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. Explanation: The vision reflects the organization's aspiration to gain international recognition as an effective monetary authority and financial system regulator. They aim to be acknowledged for their outstanding performance in implementing monetary policy, overseeing financial institutions, and providing timely and relevant economic data. BSP also hopes to be recognized as an independent and competent institution that helps to the well-being and progress of Filipinos. Core Values 1. Excellence: Consistently doing our best to master our craft, continually improving our competencies and learning new things in pursuit of the organizational goals, comparable to the best practices of other central banks. Explanation: It implies that they are committed to achieving the highest standards of performance and skill, always striving for improvement and learning from the best global practices. They also have to guarantee that they can perform optimally in their role as a central monetary authority. 2. Patriotism: Selfless commitment to the service of the Filipino people and the country. Explanation: It refers to a dedication to serving the nation and promoting the welfare of the Filipino people. It emphasizes the BSP's role in fostering economic stability, protecting the financial system, and contributing to national development, reflecting a deep commitment to the country's progress and well-being. 3. Integrity: Performing mandate with sincerity, honesty and uprightness, worthy of respect and emulation from others. Explanation: It signifies the commitment to ethical behavior, transparency, and accountability in its operations. It reflects the BSP's dedication to maintaining trust and confidence in the financial system by upholding high standards of professionalism and honesty in its policies and practices. 4. Solidarity: Performing with team spirit; acting and thinking as one in the pursuit of common goals and objectives. Explanation: It refers to a commitment to working together for common goals, particularly in promoting economic stability and financial inclusion. It emphasizes collaboration among stakeholders to ensure the well-being of the country's financial system and to support community development initiatives. 5. Accountability: Taking full responsibility for one’s or group’s actions. Explanation: In the context of the Bangko Sentral ng Pilipinas (BSP), accountability refers to the central bank's responsibility for its monetary policy decisions, regulatory actions, and overall financial management. It includes ensuring transparency in operations, adhering to laws, and being answerable to the public and government. The BSP aims to foster trust in the financial system by being accountable for its actions and decisions. V. SEAL OF BSP The Bangko Sentral ng Pilipinas (BSP) has introduced a new logo in keeping with the changing times. The new logo features a full-bodied Philippine eagle rendered in gold, taking inspiration from various wildlife photographs of actual Philippine eagles. The use of the Philippine eagle in the new logo is intended to represent the BSP as well as the Filipino people which it serves. DESIGN ELEMENTS: CORPORATE TEXT. The name of the Bangko Sentral ng Pilipinas is rendered in gold, using a clean sans-serif font, to signify the Bank's operational efficiency, clarity of vision, and single-mindedness of purpose. DOMINANT COLORS 1. The yellow gold foreground elements represent the BSP's aim to promote economic growth and prosperity, and the high standards of ethics and performance it holds. 2. The two-tone midnight blue background is evocative of the honor, dignity, and noble character of the Filipino people, and the BSP's unwavering commitment to serve the nation. SHAPE The logo is contained within a perfect circle—without sides, a beginning, or an end—accentuated by a bold border, to convey the singular and integrative nature of the BSP and its impartial approach to holistic growth and development. GOLDEN PHILIPPINE EAGLE The logo employs a photorealistic rendering of a Philippine eagle in flight, signifying the strength of leadership and foresight that the BSP provides in the financial sector and the economy. 1. The eagle's outstretched wings and tail feathers - symbolize the BSP's balanced, inclusive approach to growth and development, while also conveying the central monetary authority's mastery over its field. 2. The eagle's head and eyes face east - expressing the BSP's vigilance and readiness to seize challenges and opportunities that rise over the horizon.  3. The talons - represent the strong will, resolve, and the monetary and financial tools that the central bank uses in discharging its mandates. GOLDEN STARS The three golden stars represent the three pillars of central banking (price stability, stable banking system, and a safe and efficient payments and settlements system), as well as the BSP's commitment to promote and sustain a high quality of life for all Filipinos, across Luzon, Visayas, and Mindanao.