Bangko Sentral ng Pilipinas' (BSP) primary objective is to maintain price stability conducive to balanced and sustainable economic growth. BSP also seeks to promote and preserve monetary stability and the convertibility of the national currency. BSP provides policy direction in the areas of money, banking, and credit. It supervises the operations of banks and exercises regulatory powers over non-bank financial institutions that perform quasi-banking functions.

Price Stability

The primary objective of the Bangko Sentral ng Pilipinas’ (BSP) monetary policy is “to promote price stability conducive to a balanced and sustainable growth of the economy” (Republic Act 7653). The January 2002 adoption of a monetary policy with an inflation targeting framework was aimed at achieving this objective.

Financial Stability

BSP Circulars No. 280, 360, and 475 specify guidelines for incorporating market risk into the framework for large commercial banks, known as universal banks, and other commercial banks. Financial institutions are required to comply with mark-to-market practices to meet risk-based capital requirements set by BSP.

The Securities and Exchange Commission (SEC) regulates both primary and secondary debt markets; and oversees the Philippine Stock Exchange, the three subsidiaries of the Philippine Dealing Systems Holdings Corp., brokers, registrars, transfer agents, and clearinghouses.

The Department of Finance (DOF) regulates issuance of government securities in the market while the DOF's Bureau of the Treasury operates and monitors daily debt market activity.

The Bangko Sentral ng Pilipinas (BSP) supervises banks and non-bank financial institutions that perform quasi-banking functions. BSP supervises the registration of foreign investments in the country and monitors the inflow and outflow of capital. The Insurance Commission supervises and regulates the local insurance industry.