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Bangko Sentral ng Pilipinas (BSP)

Reference entry · last updated 20260910

Bangko Sentral ng Pilipinas (BSP) is the central bank of the Philippines. Its primary objective is price stability conducive to balanced and sustainable economic growth.[1]

1. First principles: central banking

A central bank manages a country’s monetary system. BSP formulates monetary policy, issues Philippine currency, manages international reserves, and supervises banks and certain non-bank financial institutions.[1]

2. Role in payments

BSP oversees Philippine payment and settlement systems. The National Retail Payment System (NRPS) sets the framework for retail payments between participating institutions.[2]

BSP also operates PhilPaSSplus, the peso settlement system. Participating institutions use central-bank accounts to discharge payment obligations. This institutional settlement is distinct from the balance shown in a customer’s banking app.[3]

3. Retail payment context

InstaPay and PESONet are retail payment arrangements under NRPS.[2]

4. See also

5. References

  1. BSP. About the Bank.
  2. BSP. Circular No. 980: NRPS framework (2017).
  3. BSP. PhilPaSS overview.