Monetary policy

The primary objective of BSP's monetary policy is to promote a low and stable inflation conducive to a balanced and sustainable economic growth. The adoption of inflation targeting framework for monetary policy in January 2002 is aimed at achieving this objective.

Monetary Operations

Monetary operations refer to the buying/selling of government securities, lending/borrowing against underlying assets as collateral, acceptance of fixed-term deposits, foreign exchange swaps, and the use of other monetary instruments of the Bangko Sentral aimed at influencing the underlying demand and supply conditions for central bank money.

Systemic Risk Management

The promotion of “Financial Stability” is a formal mandate that is uniquely ascribed to the Bangko Sentral ng Pilipinas (BSP). This is provided for in the amended BSP Charter (Republic Act No. 11211) which was signed by President Duterte in February 2019.

Financial Supervision

The Bangko Sentral has supervision over the operations of banks and exercises such regulatory powers as provided in the New Central Bank Act and other pertinent laws over the operations of finance companies and non-bank financial institutions performing quasi-banking functions.

Payments and Settlements System Oversight

Payment systems are essential to the effective functioning of financial systems worldwide. They provide the channels through which funds are transferred among banks and other institutions to discharge payment obligations arising from economic and financial transactions across the entire economy. An efficient, secure and reliable payment system reduces the cost of exchanging goods and services, and it is an essential tool for the effective implementation of monetary policy, and the smooth functioning​ of money and capital markets. It is this key role played by payment and settlement systems (PSS) in the smooth functioning of an economy in general and its financial and monetary system in particular that gives the central bank (CB) a strong incentive for ensuring that an effective, reliable and secure payment and settlement system is in place.

Currency Management

The BSP has the exclusive power and authority to issue the national currency. BSP’s notes and coins are issued against, and in amounts not exceeding, the assets of the BSP. All notes and coins issued by the BSP are fully guaranteed by the government and are considered legal tender for all private and public debts.

Inclusive Finance

In line with its strategic mandate to promote broad and convenient access to high quality financial services and consider the interest of the general public, the BSP undertakes various programs and policy initiatives aimed at enhancing financial inclusion, financial education, and consumer empowerment.

Loans and Credit Operations

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

International Reserves Management

The BSP maintains a healthy level of international reserves to provide liquidity support in times of volatility in the exchange rate and balance of payments.

International Operations

The BSP’s mandate on international operations under the purview of the International Operations Department is to support the promotion and maintenance of price stability, external sustainability, and the integrity and value of the Philippine peso through the effective management of external debt, foreign investments and other foreign exchange (FX) transactions.

International Economic Cooperation

The BSP’s proactive engagement in various regional and international fora significantly contributed to domestic policy formulation; assured partners through established crisis prevention safety nets; broadened opportunities offered by financial integration and cooperation agreements; and raised skills and knowledge through capacity building initiatives.

Economic Education

The BSP’s Economic Education Portal provides the general public a guided access on the BSP’s collection of information on economic education for them to better understand and appreciate the role of the BSP, as the country’s central bank, in the Philippine economy. As the portal strategically presents the BSP’s available learning materials, it aims to develop and strengthen the public’s knowledge on economic concepts that could eventually guide them in making sound economic and financial decisions.

Organizational Structure

Governance of the Bank

The Monetary Board exercises the powers and functions of the BSP, such as the conduct of monetary policy and supervision of the financial system. Its chairman is the BSP Governor, with five full-time members from the private sector and one member from the Cabinet. The Governor is the chie​f executive officer of the BSP and is required to direct and supervise the operations and internal administration of the BSP.

BSP Seal

BSP Charter

History of the Bank

Money Museum

Within the complex of the Bangko Sentral ng Pilipinas, the nation's central monetary authority, resides a numismatist's haven - the Museo ng Bangko Sentral ng Pilipinas. Inaugurated on January 3, 1999, as part of the celebration of the 50 years of central banking in the Philippines, the Museo showcases the Bank's collection of currencies.​

Economic and Financial Learning Center

The focal point of contact of the public of information concerning economic and financial matters. Instead of gathering various information from different departments/locations within the BSP, researchers can just visit the EFLC for their information requirements.