The Bangko Sentral ng Pilipinas (BSP) is seeking to appoint a manager to oversee the operations of entities handling the country’s critical payment systems. This move aims to minimise disruptions to financial markets and protect the interests of regulated firms and the public alike.
The central bank is currently collecting comments from stakeholders on a draft circular that outlines the framework for designating this manager for operators of designated payment systems (ODPS).
The Philippines presently has three payment systems classified as “systemically important”: the Philippine Peso Real-Time Gross Settlement Payment System (Peso RTGS), the Philippine Domestic Dollar Transfer System (PDDTS), and the PhP-USD Payment vs Payment (PvP) System.
The BSP itself operates the Peso RTGS, while the Philippine Clearing House Corp. (PCHC) handles the PDDTS and PvP. Additionally, two systems are deemed “prominently important”: PESONet, also operated by PCHC, and InstaPay, run by Bancnet Inc.
Under the proposed framework, ODPS will become accountable to a designated manager. The BSP would select this individual without requiring a prior court hearing, and their performance would be subject to periodic assessment by the central bank’s supervising department.
The manager would possess the authority to take over ODPS operations if threats emerge to a payment system’s safety, efficiency, or reliability, including violations of law or failure to meet operational, financial, or governance standards.
The position requires a Filipino citizen with recognised expertise and at least 10 years’ experience in operating, managing, or supervising payment systems, financial operations, or similar functions.
In exceptional circumstances, if no qualified candidate is available, the BSP may appoint a senior central bank officer holding a rank of at least director. Managers found to be at fault would face appropriate sanctions.
Reflecting the central bank’s commitment, a draft document stated:
“The Bangko Sentral is committed to ensuring the safety, efficiency, security and reliability of the national payment systems as a cornerstone of monetary and financial stability.”
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