BSP revises SOP for PH holidays
The Bangko Sentral ng Pilipinas (BSP) has revised its standard operating procedures (SOP) for holidays – particularly nonworking days that were not in the original list at the beginning of a given year – to ensure continued support to the domestic financial markets on off days.
Based on a memo (BSP Memorandum Order No. M-2023040) released Friday, Dec. 22, signed by BSP Governor Eli M. Remolona Jr. on the same day, the BSP has amended its SOP for holidays for the “smooth operation” of the country's large value payment system and the broader financial system.
Remolona said the revised SOP “underscores the availability of essential BSP services during government work suspensions and holidays that are not on the list of regular and special non-working holidays issued by the Office of the President prior to or at the start of a new year.”
He said these services include payments and settlements, and cash operation.
Remolona added that to ensure market participants’ liquidity requirements are available during holidays, the amended SOP will make certain that the overnight deposit facility (ODF) and the term deposit facility (TDF) are accessible.
“The revised SOP also provides for the availability of (ODF) and (TDF) maturities on ad hoc holidays,” said the BSP chief.
The new BSP SOP for holidays reflect updates on the SOP of industry groups such as the Bankers Association of the Philippines (BAP), Philippine Clearing House Corporation (PCHC), as well as the Bureau of the Treasury, and Philippine Dealing
System Holdings Corp. or PDEX.
As for the SOP of the interbank network Bancnet, Remolona said the revised SOP “already forms part of (its) amended policy.”
Based on the memo, all BSP services will be closed on holidays listed prior the beginning of a given year, which usually are Malacanang-declared regular and special or non-working holiday.
For announced holidays on an ordinary business day, all BSP services will remain open. These include: ODF and TDF maturities that will be processed; payments and settlements unless declared otherwise by the BSP governor; cash services; reserve position requirements; open markets such as PDEX, BTR, BAP and MART; Philippine Depository and Trust Corp. or PDTC equities, depository and fixed income; PCHC’S PESONET; and Bancnet’s Instapay.
However, if announced holidays on an ordinary business day is declared before 9AM due to emergency situations such as typhoon, heavy rains, localized flooding, conflagration, massive transportation strike, or armed and civil conflict, all BSP services except ODF and TDF will be open.
It is the same for strong earthquakes and tsunamis, infectious diseases outbreak or force majeure events. But, if the declared emergency holiday extends to a second day, all BSP services will stay open but with detailed conditions for market participants to follow, as well as certain prerequisites.
As for holiday declarations made on a Saturday or Sunday to take effect on Monday, the BSP said it will “make the declaration of favorable or unfavorable condition before 6AM.”