Country Guide: Securities and Banking
Regulators
The operations and activities of banks are subject to the supervision of the Bangko Sentral ng Pilipinas, the Philippine central bank. The BSP also has supervision over quasi-banks and trust entities. The BSP is the central monetary authority in the Philippines. While the BSP is a government-owned corporation, it enjoys fiscal and administrative autonomy. It therefore functions as an independent and accountable body corporate in the discharge of its mandated responsibilities concerning money, banking and credit. Supervision not only contemplates the promulgation by the BSP of rules of conduct and standards of operations for banks, but also visitorial powers. These powers are the conduct of examination and investigation of the activities of banks with a view to determining their compliance with those rules and standards, and enforcing prompt corrective action. The ultimate aim is to ensure the continued solvency and liquidity of banks, in line with capital adequacy rules based on Basel II and eventually Basel III.