The Bangko Sentral ng Pilipinas (BSP) is the owner and operator of the Real-Time Gross Settlement (RTGS) system commonly known as PhilPaSS, and is designated as the settlement bank, or central institution for the settlement of transactions that are processed through the system.

As owner and operator of PhilPaSS, BSP is responsible for:

• providing, maintaining, and upgrading the PhilPaSS system, including system hardware and software;
• ensuring uninterrupted operations between PhilPaSS and the network provider, and that adequate continuity-of-business plans are in place; and,
• ensuring that adequate back-up files are available for continuous and efficient operation of the system.

As a settlement bank, the BSP, through PhilPaSS, is responsible for:

• creating a participant’s PhilPaSS account and ensuring that all PhilPaSS transactions and other bank transactions are posted the same business day;
• receiving and authenticating electronic fund transfer instructions from participants;
• ensuring that the paying bank has sufficient balances and posting the debit entry in its account and the credit entry in the beneficiary bank’s account; and,
• providing feedback to participants regarding their PhilPaSS transactions, balances, and other queries.

The Bangko Sentral ng Pilipinas (BSP) defines a custodian as a BSP-accredited bank or non-bank financial institution designated by the investor to safe-keep the security by allowing the custodian to hold title to the security, either in a nominee or trustee capacity. BSP permits a custodian to perform the following administrative functions and services related to investing in a security or various securities: i) determine the mark-to-market valuation of the security and inform the client of its value; ii) compute and collect the interest due on the security; iii) render statements on outstanding securities under the custodian’s safekeeping; iv) represents the client in the event of default or breach of contract by the issuer; and v) lend the security as an agent to earn the client additional income on the security.

Banks and non-bank financial institutions are required to use third-party custodians for securities that are sold, borrowed, purchased, traded, or otherwise transacted in the Philippines (BSP Circular No. 392). The following list includes all six BSP-accredited, third-party custodians:

• Bank of the Philippine Islands
• Citibank, N.A.
• Deutsche Bank
• Hongkong and Shanghai Banking Corporation 
• Standard Chartered Bank
• Philippine Depository and Trust Corporation