The Bangko Sentral (BSP) has released the draft Circular on Payment System Oversight Framework for comments. Soliciting comments from the stakeholders is a key step in the BSP’s policy-making process, ensuring the development of comprehensive and responsive regulations.
The proposed framework provides the BSP’s approach to discharging its mandate as overseer of payment systems pursuant to Republic Act (R.A.) No. 11127 or the National Payment Systems Act (NPSA). The framework covers the following key areas of the BSP’s oversight function:
- Performance of oversight activities on payment service providers, operators of payment systems and other relevant payment system participants;
- Scope and dynamics of payment system oversight, including the extent of cooperative oversight; and,
- Designation criteria and expectations on participants of designated payment systems.
Relative to the last item above, the NPSA empowers the BSP to designate a payment system that poses or has the potential to pose a systemic risk. Moreover, the BSP may designate a payment system for the purpose of preserving public interest.
To ensure adherence to international standards, the draft framework is aligned with the concepts and principles set by the Committee on Payment and Settlement Systems (CPSS) of the Bank for International Settlements (BIS).
The issuance of a payment system oversight framework forms part of the phased-in implementation of the NPSA. The initial implementing regulation that has been issued by the BSP requires the operators of payment systems to register with the BSP to ensure that these operators are captured under the BSP’s sphere of authority.
The draft payment system oversight framework is available on the BSP website. Any comment on this draft Circular may be sent to the Payment System Oversight Department (PSOD) at email@example.com not later than 30 March 2020.