Roles of the BSP
The BSP performs the following roles in the payments and settlements system:
1. Operator of the Peso Real-Time Gross Settlement (RTGS) Payment System
The BSP, through the Peso RTGS Management Committee (ManCom), operates the Peso RTGS payment system. The Peso RTGS ManCom is comprised of the heads of the BSP departments that enable the smooth operation of the Peso RTGS payment system. The payment system uses the
PhilPaSSplus as its settlement platform.
The BSP's Payments and Settlements Department (PSD) serves as the payment system operator responsible for the operation and maintenance of the
PhilPaSSplus and its critical components. It ensures that the operation of PhilPaSSplus is safe, efficient, and inclusive so that time-critical payments are completed as expected in order to facilitate and enhance economic processes, manage risks, and absorb shocks to promote financial stability.
2. Provider of liquidity facility to Peso RTGS payment system participants
The BSP provides the Intraday Settlement Facility (ISF) to ensure smooth flow of payments through the Peso RTGS payment system and timely execution of independent settlements. The ISF is a sale and repurchase facility that is available to eligible Peso RTGS participants in order to support their liquidity requirements and prevent gridlocks in the RTGS system due to timing mismatch in the settlement of payments at
PhilPaSSplus.
3. Overseer of the payments and settlements system
The BSP, through the Payments Supervision and Licensing Department of the Payments and Currency Management Sector, oversees the payment systems in the country to ensure safeguards are in place to mitigate systemic risks arising from settlement, credit and liquidity risks of payments and settlement systems participants.
4. User of its own RTGS system
The BSP, through its different departments, also makes use of the payments and settlements system for the settlement of its own transactions with its stakeholders, such as:
The automated collection and settlement of Financial Supervision Sector annual supervisory fees;
- Management of escrow accounts by the Department of Loans and Credit as the beneficiary institution of fund transfers from the Landbank of the Philippines;
- Processing/posting of banks' cash deposit and withdrawal transactions with BSP Regional Offices and Branches, including the Greater Manila Regional Office;
- Investment/maturities of funds placed by the Provident Fund Office; and
- Trading transactions as well as settlements and maturities from market transactions with the Financial Markets.
5. Catalyst of payments system reforms
The BSP initiates the conduct of studies/research relating to payments system to ensure that it grows and matures in accordance with global standards. Among the studies conducted which initiated reform to the retail payment systems in the country is the National Retail Payment System.
