By Luisa Maria Jacinta C. Jocson, Senior Reporter
THE BANGKO SENTRAL ng Pilipinas (BSP) and the Bureau of the Treasury (BTr) have signed a memorandum of understanding (MoU) to strengthen their payments and settlements systems.
“We are creating a safer and more efficient securities market that enables the government to raise funds more effectively, supporting vital public investments in education, infrastructure, healthcare, and more,” BSP Deputy Governor Mamerto E. Tangonan said during the MoU signing on Thursday.
The MoU aims to promote safety and resilience of the interconnected financial market infrastructures (FMIs) operated by the BSP and the BTr. Under the agreement, the agencies will link the central bank’s Peso Real-Time Gross Settlement (RTGS) System and the Treasury’s National Registry of Scripless Securities (NROSS).
“This collaboration also aims to align operational practices with international standards, enhancing our ability to manage risk, secure transactions, and build market confidence,” Mr. Tangonan said.
The agreement also covers other systems related to the Peso RTGS and NROSS, such as the Delivery versus Payment system and Intraday Settlement Facility.
National Treasurer Sharon P. Almanza said the signing “formalizes our mutual intent toward a more robust, secure, reliable, and resilient financial market infrastructure.”
“As the operator of the NROSS, which is the central securities depository and securities settlement system for all government securities and BSP securities, the BTr recognizes the vital role we play in ensuring the integrity of our system and maintaining financial market confidence and stability.”
Ms. Almanza said the partnership also strengthens their commitment to adhere to the financial market infrastructure principles issued by the Bank for International Settlements and the International Organization of Securities Commissions.
“Let me mention (the ways) in which the Treasury and the BSP could work together. In the BSP, we worry about systemic risk. We worry about big banks suddenly getting problems. And then we have to lend liquidity to those banks,” BSP Governor Eli M. Remolona, Jr. said.
“It would be nice if in lending that liquidity, all we had to do was look at NROSS. And we know exactly what the banks held. And we know exactly how much collateral the bank would have, that we can lend without worrying too much about the lawyers,” he added.
