BSP, BTr sign MOU to boost payments systems resilience

The Bangko Sentral ng Pilipinas (BSP) and the Bureau of the Treasury (BTr) have signed a memorandum of understanding (MOU) to enhance the resilience of their interconnected payments and settlements systems, specifically targeting the safety and robustness of financial market infrastructures.

The agreement links the BSP's Peso Real-Time Gross Settlement (RTGS) system, known as PhilPaSSplus, with the BTr's National Registry of Scripless Securities (NRoSS).

This collaboration aims to align operational practices with international standards, enhancing risk management and transaction security.

BSP Governor Eli Remolona Jr. emphasized the MOU as a crucial step for a safer and more efficient government securities market, stating, "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 further noted that the collaboration would deepen capital markets, manage risks more effectively, and support public investments in key sectors.

Remolona also warned that fragmented systems could pose systemic risks, citing a past coordination failure in the 1990s that enabled fraudulent activity in the bond market.