week 3 Flashcards
is the control of the quantity of money available in an economy and the channels by which new money is supplied. Economic statistics such as gross domestic product (GDP), the rate of inflation, and industry and sector-specific growth rates influence monetary policy strategy.
Monetary policy
is a financial institution that is responsible for overseeing the monetary system and policy of a nation or group of nations, regulating its money supply (literally the amount of money in circulation), and setting interest rates.
central bank
In the Philippines, monetary policy is the way the central bank, The —– —– —– —–, controls the supply and availability of money, the cost of money, and the rate of interest.
The Bankgo sentral ng pilipinas
the 7thGovernor of the Bangko Sentral ng Pilipinas ?
DR. ELI M. REMOLONA, JR.
is theprimary source of regulations governing entities supervised by the Bangko Sentral ng Pilipinas.
The Manual of Regulations for Banks (MORB)
It provides the rules and policy issuances that implement the broader provisions of Republic Act No. —-, also known as the
Act no. 8791 or General Banking Law of 2000
central banking is a relatively new phenomenon, tracing its origin to about ?
400 years ago
What central banks do?
- Creation
- Withdraw/Destroy/Demonetized
- Circulation
Role of Central Banks
The primary objective of BSP’s monetary policy is to promote a low and stable inflation conducive to a balanced and sustainable economic growth.
Monetary Policy
Refer to the buying/selling of goverment securities, lending/borrowing against underlying assets as collateral, acceptance of fixed term deposits, foreign exchange swaps, and the use of other monetary instruments of the Banglp Sentral aimed at influencing the underlying demand and supply conditions for central bank money
Monetary Operations
The promotion of “financial stability” is a formal mandate that is uniquely ascibed to the Bangko Sentral ng pilipinas
Systemic Risk management
The bangko sentral has a supervision the operations of banks and exercises such regulatory powers as provided in the new central bank act and other pertinent laws over the operation of finance companies and non-bank instutions performing quasi-banking functions
Financial Supervision
They provide the channels trough which funds are transfeered among banks and other intitutions to discharge payment obligation arising from economic and financial transactions cross the entire economy.
Payments and Settlements System Oversight
The BSP has the exclusive power and authority to issue the national currency. BSP’s notes and coind are issued against, and in amounts not exceeding, the assets of the BSP.
Curreny Management
In line with it’s strategic mandate to promote broad and convenient access to high quality financial services and consider the interest of the general public, the BSP undertakes various programs and policy iniatives amied at enhancing finanial inclusion, fincancial education, and consumer empowerment
Inclusive Finance
The BSP extends discounts, loans and advances to baking instituion in order to influence the volume of credit consistent with objective of price stability and maintenance of financial stability.
Loans and Credit Operations
The BSP maintains a healthy level of international reserves to provide liquidity support in time of volatility in the exhange rate and balance payments
International Reserves Management
The BSP’s proactive engagement in various regional and international fora significantly contributed to domestic policy formulation; assured partners through established crisis prevention safet nets; broadened opportunities offered by financial inegration and cooperation agreements; and rasied skills and knowledge through capacity building initiatives.
International Economic Cooperation
The BSP’s mandate on international operations under the purview of the international Operations Department is to support the promotion and maintenance of price stability, external sustainability, and the integrity and value of the Philippine peso through the effective management of external debt, foreign investments and other foreign exhange (FX) transactions.
International Operations
Provides the general public a guided access on the BSP’s collection of information on economic education for then to better understand and appreciate the role of the BSP, as the country’s central bank, in the Philippine economy.
Economic Education
refer to the percentage of bank deposits and deposit substitute liabilities that banks must set aside in deposits with the BSP which they cannot lend out, or where available through reserve-eligible government securities.
Reserve requirements
is a standing credit facility provided by the BSP to help banks meet temporary liquidity needs by refinancing the loans they extend to their clients and enable them to deliver credit to all productive sectors of the economy
Rediscounting
are financial assistance to banking institutions to serve as temporary remedial measures to help solvent banks overcome their liquidity problems arising from causes beyond their control
Emergency loans
