Bangko Sentral ng Pilipinas (BSP): Central Banking as the Agent of Efficient Payment and Settlement System

As the Philippines central bank, the Bangko Sentral ng Pilipinas (BSP) takes the lead in maintaining a safe, sound, and efficient payments and settlements system for the country. Everyday, millions of payment transactions are being made among various parties within the Philippines as well as between the Philippines and other countries. Some transactions are simple involving small amounts. Example of these are payments settled in cash, checks, scored valued cards as well as credit and debit cards. Other transaction are more complex involving large payments. Examples are inter-bank loans, purchases and sales of government securities, settlements of the peso leg of foreign currency sales and purchases as well as high-value customer payments.

Transactions between banks using their accounts maintained with the BSP make up a critical area of supervision. The BSP provides the necessary infrastructure for facilitating these transactions between banks through their accounts maintained with the BSP. This is known as the Philippine Payment and Settlement System (PhilPaSS).


PhilPaSS is the real-time gross settlement system operated and maintained by the BSP. PhilPaSS facilitates the processing of payments and settlements between banks. It enables the final and irrevocable settlement of interbank transactions. With PhilPaSS, transactions are processed and settled in real time. Eliminating the risk involve in the settlements process.

The BSP ensures that the payment infrastructure meets the highest standards for safety, soundness and operational resilience. It makes sure that the new tools provided by rapid technological advances are used in the design of payment systems.

With the third pillar of central banking, the BSP sees to it that payments are made safely, promptly and accurately. - https://www.affordablecebu.com/