Wanted: Manager of Philippine payment system operators
Bangko Sentral ng Pilipinas. (File photo / Philippine Daily Inquirer)
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) wants to appoint a manager who will oversee the operations of entities handling the country’s critical payment systems, in a bid to minimize disruptions to financial markets and protect the interest of regulated firms and the public.
The BSP is collecting comments from stakeholders on a draft circular that would provide the framework for the designation of a manager who will supervise the operators of a designated payment system (ODPS).
At present, there are three systemically important payment systems in the country, namely the Philippine Peso Real-Time Gross Settlement Payment System (Peso RTGS), Philippine Domestic Dollar Transfer System (PDDTS) and PhP-USD Payment vs Payment (PvP) System.
The BSP is the designated operator of the Peso RTGS while the Philippine Clearing House Corp. (PCHC) handles the PDDTS and the PvP.
Meanwhile, there are two “prominently important” payment systems in the country. The first one is the PCHC-operated PESONet while the other is InstaPay, which is run by Bancnet Inc.
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Proposed framework
Under the draft circular, those ODPS would soon have to answer to a manager, who will be picked by the BSP without the need for a prior court hearing. The performance and effectiveness of the manager would be subject to periodic assessment by the supervising department of the central bank.
The manager may take over the operations of the ODPS if there are threats to the safety, efficiency and reliability of a payment system. Such threats could be violation of laws, as well as failure to meet operational, financial or governance standards.
The designated manager must be a Filipino citizen, with recognized expertise and at least 10 years of experience in operating, managing or supervising payment systems, financial operations or other functions of a similar nature.
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Under exceptional circumstances, such as the unavailability of a qualified and willing manager, the BSP may appoint a senior central bank officer holding a rank of at least director to the position.
An erring manager of an ODPS would be subject to appropriate sanctions.
“The Bangko Sentral is committed to ensuring the safety, efficiency, security and reliability of the national payment systems as a cornerstone of monetary and financial stability,” the draft document read. INQ
