MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) and the Bureau of the Treasury (BTr) have signed a memorandum of understanding (MOU) to strengthen the country’s financial market infrastructure by integrating their core settlement systems.
BSP Governor Eli Remolona Jr. said the agreement marked a “meaningful milestone” in the long-standing partnership between the two institutions, calling it crucial in promoting a safer and more efficient government securities market.
“This MOU is not just a document. It’s to tell us that we have work to do, and we have to work together to do that work,” he said. “We are, as they say, two sides of the same coin. And those two sides reinforce each other.”
He said the collaboration would deepen capital markets, manage risks more effectively and support public investments in key sectors such as infrastructure, education and health.
The MOU links the BSP’s Peso Real-Time Gross Settlement (RTGS) system with the BTr’s National Registry of Scripless Securities (NRoSS), allowing for faster and more secure settlement of government securities transactions.
The BSP chief cited the coordination failure in the 1990s that enabled fraudulent activity in the bond market, warning that fragmented systems could pose systemic risks.
Remolona said the MOU opens the door for even deeper cooperation in times of stress. “When we manage systemic risk, it would help if we could look at NRoSS and immediately know what collateral banks have, so we can lend quickly and safely. That’s the direction this partnership takes us,” he said.
National Treasurer Sharon Almanza said the integrated systems would help align the country’s practices with global standards issued by the Bank for International Settlements and the International Organization of Securities Commissions.
“Through this arrangement, we will collaborate to address critical challenges in the operation and maintenance of our systems, ensuring that this remains strategically aligned, adequately secured and operationally sound,” she said.
The BTr also vowed to work with the central bank on whole-of-market initiatives and third-party assessments to align with international standards and best practices.
“The signing of this MOU signals strength and partnership, one that reinforces our shared vision of a resilient, future-ready and globally competitive financial market infrastructure for the country,” Almanza said.
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