BSP forms new unit as part of reorganization

By Melissa Luz T. Lopez, Senior Reporter
THE Bangko Sentral ng Pilipinas (BSP) will introduce a new unit in the bank as part of its reorganization plan, it announced on Friday.
In a statement, the central bank revealed a “phased” reorganization which involved changes in the mandates and names of three existing sectors and the creation of a new unit. The adjustments are seen to enhance the BSP’s “capability to fulfill its mandate in an ever-shifting economic landscape.”
The changes took effect on May 2.
The four sectors are as follows:
• the Financial Supervision Sector, formerly known as the Supervision and Examination Sector headed by Deputy Governor Chuchi G. Fonacier;
• the Monetary and Economics Sector, previously the Monetary Stability Sector (MSS) headed by Deputy Governor Diwa C. Guinigundo;
• the Corporate Services Sector, under the old Resource Management Sector led by Deputy Governor Maria Almasara Cyd N. Tuaño-Amador;
• and the new Currency Management Sector, with Assistant Governor Dahlia D. Luna sitting as acting head.
The reorganization is part of Governor Nestor A. Espenilla, Jr.’s reform plans for the central bank, which took shape after he assumed office in July 2017.
Republic Act 7653 or the New Central Bank Act provides for only three deputy governors at the BSP. Proposed changes to this law raise the number to five deputy governors, but remain pending in Congress.
The Corporate Services Sector will handle the BSP’s human and physical resources as well as the bank’s communications strategy. Meanwhile, the Currency Management Sector will handle the printing of bills and minting of coins at the Security Plant Complex in Quezon City, which was previously under the MSS.
The Monetary and Economics Sector takes charge of policy formulation, implementation and assessment including economic research and statistics. The Treasury Department, Payments and Settlements Office, and Investor Relations Office will also be under this group.
The Financial Supervision Sector will serve as regulator for banks and other BSP-supervised firms to include concerns on financial technology (fintech) and consumer protection.
The central bank has committed to embrace digital solutions by welcoming fintech players to offer services in the country, with the goal of raising the share of e-payments to 20% of total transactions by the year 2020.
The BSP is likewise implementing a reshuffling among department directors and officials at its main office in Manila as well as in regional branches and offices.
These changes are expected to improve risk management and enhance internal audit systems, the central bank added.
Maintaining price and financial stability are the BSP’s mandates, alongside a “safe and efficient” payments system that would support overall economic growth.