Part 3 Monetary

17問 • 1年前

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By managing the supply and price of money, the BSP is able to exert some influence on the changes in the prices of goods and services.

as monetary authority

It regularly monitors and examines the operations of banks, as well as their compliance with banking rules and regulations.

as supervisor of all banks

It has the exclusive authority to issue the national currency. All notes and coins issued are fully guaranteed by the government and are considered legal tender for all private and public debts.

as issuer of money

It maintains a comfortable level of reserves to reduce the economy's vulnerability against global economic risks, support the needs of a more dynamic and globally integrated economy and to preserve the international convertibility of the Philippine peso,

as custodian of the country's official reserves

It does not deal directly with the public. Instead, its clients are the banks. For example, the BSP grants loans to banks for their short term liquidity needs.

as bank of all banks

It provides loans and advances to banks in times of emergencies, or if financial problems directly threaten monetary and financial stability.

as lender of last resort

It serves as adviser to the National Government on matters pertaining to borrowings.

as adviser

It serves as official depository of the government and its political subdivisions and instrumentalities including GOCCs (Government Owned and Controlled Corporations).

as official depository

The Bangko Sentral has the power to impose conditions or requirements on the securities against the loans extended by the bank. This in effect increases the loan value of the collateral.

control of the collaterals required on bank loans

This refers to the upper limit that the Bangko Sentral may place on the loans and investment of banks. It is instituted only during inflation. It is a direct limitation on the volume of loans and investments that banks may extend. Such restrictions may not be instituted during deflation. To do this, the Bangko Sentral sets a date and whatever is the total amount of loans and investment the bank has on that date is its limit.

imposition of portfolio ceiling

It is the minimum ratio that the combined account of surplus may bear on the banks' corporate assets. The Bangko Sentral requires 10% of the risk assets of a bank as its minimum capital required. Thus, total assets minus non-risk assets equals risk assets.

minimum capital ratio

This particular means of controlling credit or money supply is popularly known as moral influence. The Bangko Sentral influences the direction and conduct of business enterprises, investors and consumers. This is more of a psychological approach in which the Bangko Sentral may use it persuasive power to make the banks follow or support credit policies without direct imposition of restrictions.

moral suasion

The Bangko Sentral extends rediscounting loans to commercial and rural banks to meet the credit needs and influence the direction of financial resources towards priority projects, particularly small-scale and cottage industries as well as food production and export oriented projects.

rediscounting facility

This was established in 1952 by the governments of the United States and the Philippines specifically to promote both small and medium scale industries. The said fund grants and guarantees have been channelled through the various accredited financial intermediaries.

industrial guarantee and loan fund

This provides funds for medium and large-scale enterprises. The Apex Fund draws its resources from the World Bank and other international commercial sources for relending to end-users through duly accredited participating financial institutions.

apex development finance

Is that department in the Bangko Sentral ng Pilipinas which sends gold to the accounts of the Central Bank at the Bank of England and Federal Reserve Bank of New York.

the mint and gold refinery

The Bangko Sentral also sells its gold reserves to be able to meet it's foreign exchange obligations.

gold monetization

Lesson 2

mjay rabena · 33問 · 2年前

Lesson 2