BSP’s role in building a more inclusive, resilient Philippine economy
Amid global headwinds and domestic pressures, the Bangko Sentral ng Pilipinas (BSP) continues to reaffirm its role as one of the country’s most trusted institutions.
In 2024 and 2025, the BSP launched bold reforms that made the Philippine economy more resilient, more digital, and more inclusive.
Navigating with precision
Monetary policy was calibrated to ease from a peak of 6.5% in October 2023 to 5.25% by June 2025. This timely easing helps stimulate business activity and consumer confidence while keeping inflation in check.
The country’s gross international reserves (GIR) stood at US$105.46 billion as of May 2025, providing an ample buffer to cover the country’s import and external debt service requirements.
A banking system that delivers
The Philippine banking system continued to expand. As of April 2025, the total resources of the banking sector reached ₱26.9 trillion, reflecting a 5.5% year-on-year growth. During the same period, total loans rose to P15.3 trillion, marking a 10% growth, while total deposits reached ₱19.8 trillion, with a 4% growth.
Lowering the reserve requirement ratio helped ease financial market distortions and support credit expansion. Financial inclusion surged, with deposit accounts topping over 150 million, up 19% year-on-year as of March 2025. Digital bank deposits jumped 33 percent, while rural and cooperative bank deposits posted 19% growth.
Digitalization that works
Digital innovation lies at the core of the BSP’s transformation agenda. From pioneering cashless transport to securing digital wallets, the BSP is building the rails for a frictionless and resilient financial system.
Digital payments surged from just 1% of retail transactions in 2013 to 52.8% in 2023, thanks to deliberate policy and regulatory reform. More Filipinos now rely on digital platforms for bills, salaries, remittances, and everyday spending.
PESONet transfers now clear higher-value transfers more quickly, complementing InstaPay’s real-time services for lower-value transactions. Bills Pay PH, an interoperable bill payment platform, simplifies paying bills across institutions.
Through the Nexus Project, the BSP is helping build the ASEAN region’s first cross-border real-time payment network. Soon, Overseas Filipino Workers could send money home in 60 seconds, straight to any local account—via apps already in their hands.
Currency that is smarter and greener
In December 2024, the BSP introduced the First Philippine Polymer Banknote Series. The notes are smarter, cleaner, and stronger. Designed to resist counterfeiting and withstand everyday wear, they offer both durability and savings on replacement costs.
Goodbye, grey list
Another milestone came with the Philippines’ exit from the Financial Action Task Force grey list. The BSP played a key role in a coordinated national effort that restored global trust in the country’s anti-money laundering and counter-terrorism financing framework.
No one left behind
The BSP’s push for inclusive finance took root in real places—public markets, transport hubs, and fishing villages. Paleng-QR Ph Plus was rolled out to 178 LGUs, raising account openings from just 5,500 in July 2022 to over 182,000 in Q4 2024. Today, 26.2 million Filipinos, many of whom were previously unbanked, now hold basic deposit accounts.
Financial literacy initiatives like Fish N’ Learn, KITA Mo Na!, and the Youth Financial Inclusion Initiative are empowering citizens to take charge of their financial future.
Small businesses were not left behind. Lending to micro, small, and medium enterprises (MSMEs) rose by 11% to P545.2 billion in Q4 2024. The BSP waived burdensome loan documents for microenterprises and startups and rolled out a simplified loan application form.
At 32, the Bangko Sentral ng Pilipinas is advancing, evolving, and anchoring the nation’s financial future with agility, integrity, and credibility.
