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WHAT IS A PAYMENT SYSTEM?

A payment system consists of a set of instruments, banking procedures and, typically, interbank funds transfer systems that ensure the circulation of money.1 In simple terms, money is regarded as cash (i.e., notes and coins issued by the government or central bank) or claims against credit institutions in the form of deposits. The use of bank deposits to make payments has become an important medium in most developed countries and to make a payment, the payer must issue an instruction in the form of a paper-based instrument (e.g. a check) or an electronic instruction (e.g. using a credit or plastic card).

The effectiveness of payment activities is fully dependent on the arrangements that facilitate fund transfers between members and it is through these arrangements that constitute a payment system. Payment Systems consist therefore of networks that link the members with existing rules and procedures for the use of this infrastructure. A Payment System normally requires the following:

Standard methods of transmitting payment messages between members

Agreed means of settling claims within the members/participants (normally through the deposits of the members/participants with the central bank)

Common operating procedures and rules (admission, fees, operating hours)

Payment systems are vital part of the economic and financial infrastructure. Their efficient functioning, allowing transactions to be completed safely and on time, makes a key contribution to overall economic performance. Payment systems, however, can also involve significant exposures to risks for members. It is for this reason that central banks have always taken into account the design and operation of payment systems additional control features to mitigate these risks.

WHY ARE PAYMENT SYSTEMS IMPORTANT?

a. Payment systems allow safe and timely completion of transactions. Various payment systems are normally used by companies to buy or sell goods and services; individuals rely on them to receive their salaries and for retail purchases; and the government depends on them to receive taxes and pay benefits.

b. Payment systems allow the customers of one bank to make payments to other banks thereby minimizing the risks of fraud and erroneous payments to illegitimate creditors.

1 Bank for International Settlements Committee on Payment and Settlement Systems, A glossary of terms

used in payments and settlement systems (2003), p38

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c. Payment systems are vital to the operation of financial markets as they are used to settle trading of various financial instruments such as government securities, commercial paper, stocks, foreign exchange and derivatives.

WHAT ARE THE RISKS INVOLVED IN PAYMENT SYSTEMS?

The various risks in Payment Systems are as follows:

a. Credit Risk the risk that the counter-party will not meet an obligation for full value, either when due, or at any time thereafter.2 It includes both the risk of loss of unrealized gains on unsettled contracts with the defaulting party and more importantly, the risk of loss of the whole value of the transaction.

b. Liquidity Risk the risk that the counter-party will not settle an obligation for full value when due.3 This could adversely affect the expected liquidity position of the payee and may force the payee to cover its cash flow shortage by funding from other sources to meet its obligations to others.

c. Settlement Risk the risk that the completion or settlement in a transfer system will not take place as expected. This risk may comprise both credit and liquidity risk.4

d. Operational Risk the risk of human error or a breakdown of some component of the hardware, software, or communications systems that are crucial to settlement.5

e. Legal risk the risk of loss because of the unexpected application of a law or regulation or because a contract cannot be enforced6

WHAT ARE THE MAJOR PAYMENT INSTRUMENTS IN THE PHILIPPINES?

a. Check

A written order from one party (the drawer) to another (the drawee, normally a bank) requiring the drawee to pay a specified sum on demand to the drawer or to a third party specified by the drawer.

2 Ibid., p17

3 Ibid., p29

4 Ibid., p45

5 Ibid., p36

6 Ibid., p29

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Checks may be used for settling debts and withdrawing money from banks.7

In the Philippines, banks exchange checks through the Electronic Check Clearing System (ECCS) of the Philippine Clearing House Corporation (PCHC) for processing and settlement through their demand deposit accounts (DDA) that are maintained with the BSP. Checks are commonly used by consumers for bills and small value payments and for businesses for their regular payments such as purchase of goods and services.

b. Credit Card

A card indicating that the holder has been granted a line of credit. It enables the holder to make purchases and/or withdraw cash up to a prearranged ceiling; the credit granted can be settled in full by the end of a specified period or can be settled in part, with the balance taken as extended credit. Interest is charged on the amount of any extended credit and the holder is sometimes charged an annual fee.8

Credit cards in the Philippines are usually issued by the banks which have formed part of their marketing strategy to increase the number of their customer base and improve income that can be generated from retail and consumer business. Credit card use is no longer limited to the ordinary purchase of goods and services by the cardholders. Banks have expanded its usage for other purposes such as cash advance, easy installment plan for purchases, link-up to savings and checking accounts of cardholders etc. to attract more customers. The most common credit cards being used are the Visa, MasterCard, BanKard, JCB, Unicard, Diners Card, and American Express Card.

c. Debit Card

Debit Cards enable the holder to have his purchases directly charged to funds on his account at a deposit-taking institution (may sometimes be combined with another function e.g. that of a cash card or check guarantee card).9

The existing ATM networks (BancNet, MegaLink, ExpressNet, Nationlink and Encash) have developed their own Point-of-Sale (POS) System to allow their depositors to pay for their purchases electronically through their ATMs for credit to the retailers account.

d. Stored Value Card

7 Ibid., p12

8 Ibid., p16

9 Ibid., p19

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Stored Value Cards are prepaid card in which the record of funds can be increased as well as decreased. Also called an electronic purse.10

In the Philippines, these cards are commonly single use instruments and non-reusable. Typical examples of single use cards are those issued by the the Light Rail Transit Authority, Metro Rail Transit Authority, and telecommunications companies. A bank pioneered also the use of multi-purpose reloadable e-Cash that can be used for cash withdrawal through the banks counter or automated teller machines or payment of bills to the accredited establishment of the e-Cash issuer.

e. Electronic Money

A value stored electronically in a device such as a chip card or a hard drive in a personal computer.11 Also known as e-money.

The BSP classify e-money further as monetary value stored electronically in an instrument or device which can be converted back to cash, and if issued by a bank, shall not be considered as deposit.

Two of the most popular form of e-money in the Philippines are SMART Money and Globes G-Cash.

WHAT ARE THE MAJOR PAYMENT, CLEARING AND SETTLEMENT SYSTEMS IN THE PHILIPPINES?

a. Electronic Check Clearing System (ECCS)

Operated by the Philippine Clearing House Corporation, ECCS is the system used to facilitate the exchange of checks issued by banks for processing and settlement through their DDAs with the BSP.

b. Electronic Peso Clearing and Settlement System (EPCS)

The Electronic Peso Clearing and Settlement System is an interbank account-to-account fund transfer system that supports bulk, recurring, non-time sensitive payment and collection transactions. This is considered a cost-efficient means of transacting payments and collections and considered as a robust alternative to check payments. EPCS is operated by the Philippine Clearing House Corporation.

c. Philippine Domestic Dollar Transfer System (PDDTS)

This system allows online, real time settlement of domestic interbank US Dollar transfers/trading. In addition, it provides a facility for online inquiry and settlement of foreign exchange transactions, where the

10 Ibid., p47

11 Ibid., p22

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PDDTS participants enter interbank US Dollar and Peso transfer instruction in a single screen. The US Dollar leg is settled via PDDTS using their US Dollar accounts with Citibank as settlement bank. The Peso leg is transmitted via the PDS Settlement Highway (PSH) to the Philippine Payments and Settlements System (PhilPaSS) for settlement through the banks DDAs maintained with Bangko Sentral ng Pilipinas.

d. PDS Settlement Highway (PSH)

The PSH, which is operated by the Philippine Dealing System (PDS) Group, enables the real time settlement of various investment trading activities including, but not limited to the following: settlement of the Peso leg of US Dollar interbank transfers/trading (via Payment vs. Payment system or PvP), settlement of interbank/interdealer repurchase transactions and securities trading (via Delivery vs. Payment system or DvP), tertiary or public market trading (via expanded Delivery vs. Payment system or eDvP) distribution of interests and dividends from registries, custodians or the depository.

e. Automated Teller Machine (ATM)

ATMs, being used in a variety of retail payment transactions, have been an indispensable payment instrument nowadays. The system that connects the ATM consortiums now enables cashless payments for purchases made by ATM cardholders. What the system does is it debits the ATM cardholders account with his bank for every purchase made using his ATM card thus, making transactions safer and more efficient.

f. Philippine Payments and Settlements System (PhilPaSS)

The Philippine Payments and Settlements System or PhilPaSS is the system name where both processing and final settlement of fund transfer instructions can take place continuously (i.e. in real time). As a gross settlement system, it enables individual settlement of payment instructions, that is, without netting debits against credit. As a real time settlement system, the system effects final settlement continuously rather than periodically at pre-specified times provided that a sending bank has sufficient balances or credit. The settlement process is based on real time transfer of central bank money.

WHAT IS REAL TIME GROSS SETTLEMENT (RTGS) SYSTEM?

RTGS is an automated facility, normally run by a countrys central bank, to effect high-value payment instructions between banks through the deposit accounts of the banks that are maintained with the central bank.

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Each RTGS System being operated by a central bank has its own unique name. BSPs RTGS System is called the Philippine Payments and Settlements System or PhilPaSS.

WHAT ARE THE BENEFITS OF AN RTGS SYSTEM?

An RTGS system can provide the following benefits:

a. Real time and immediate settlement of payments b. Mitigation of settlement, credit and liquidity risks c. Payments are made irrevocable and final

WHO OWNS AND OPERATES PhilPaSS?

The BSP is the owner and operator of the RTGS system commonly known as PhilPaSS, and it is likewise designated as the settlement bank or Central Institution for the settlement of transactions that are processed through the system.

As owner and operator of the PhilPaSS, the BSP is responsible for:

a. Providing, maintaining and upgrading the system including system hardware and software.

b. Ensuring uninterrupted operations between the System and SWIFT (the network provider) and adequate Continuity of Business (COB) plans are in place.

c. Ensuring that adequate back-up files are available for continuous and efficient operation of the system.

As settlement bank, the BSP through the system is responsible for:

a. Maintenance of a Participants PhilPaSS account wherein all PhilPaSS transactions and other bank transactions shall be posted during the PhilPaSS business day.

b. Receiving and authenticating electronic fund transfer instructions from the participants.

c. Checking if the paying bank has sufficient balances and posting the debit entry in its DDA and credit entry in the beneficiary banks DDA.

d. Providing feedback to the participants regarding their PhilPaSS transactions, balances and queries.

WHAT WAS THE SYSTEM BEING USED BY THE BANKS/FINANCIAL INSTITUTIONS FOR THEIR INTERBANK TRANSACTIONS PRIOR TO THE IMPLEMENTATION OF PhilPaSS ON DECEMBER 12, 2002?

Prior to December 12, 2002, the banks/financial institutions were using the Enhanced Multi-transaction Interbank Payment System (MIPS2) for

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their interbank transactions. MIPS2 was an electronic net clearing system that was operated by the Bankers Association of the Philippines (BAP) and Philippine Clearing House Corporation (PCHC) in coordination with the BSP. Both counter-parties had to input their transactions through the MIPS terminal provided by PCHC. PCHC in turn, verifies and authenticates the transactions prior to its electronic transmission to the BSP for settlement. The status of the transactions of the banks/financial institutions was being secured by the participants through the reports from MIPS2 while the balances of their demand deposits were being advised through an hourly electronic broadcast by the BSP/Comptrollership Department. Participants under MIPS2 were subjected to admission fees and a transaction fee of PhP120.00 which was being billed to the account of the debit party for every interbank transaction.

WHO ARE THE PARTICIPANTS IN PhilPaSS?

The original participants under MIPS2 were considered as participants in PhilPaSS when this was officially launched last December 12, 2002. In addition, the BSP departments/offices/units that were directly involved in MIPS2s interbank transactions were automatically listed as participants in PhilPaSS.

The following are the participants in PhilPaSS12:

i. Bangko Sentral ng Pilipinas (BSP) ii. Universal and Commercial banks iii. Specialized Government banks iv. Thrift and Savings banks v. Rural and Cooperative banks vi. Non-banks with quasi-banking facility (NBQB)

WHAT ARE THE TRANSACTIONS PROCESSED BY PhilPaSS?

The following transactions (with value dates equal to PhilPaSS business day) are accepted for processing:

a. High-value funds transfer among banks, non-bank financial intermediaries performing quasi-banking functions (NBQBs)

b. Purchase and sale of government securities under outright and repurchase agreements between and among banks and NBQBs and BSP in connection with the latters Open Market Operations

c. Settlement of the peso leg of foreign currency transactions via the Payment vs. Payment (PvP) System

12 Kindly refer to page 22 of this booklet for the complete list of PhilPaSS participants

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d. Settlement of payments for the primary and secondary market trading of government securities via the Delivery vs. Payment (DvP) System

e. Settlement of payments for the public (tertiary) market trading of government securities and inter-dealer repo transactions via the Enhanced Delivery vs. Payment (eDvP) System

f. Customer payment instructions

g. Interbank settlement of Automated Teller Machines (ATM) transactions within the members of ATM network provider and settlement of inter-network transactions of ATM network providers.

h. Cash Withdrawals with BSP-Cash Department/Regional Cash Units

i. Results of Check Clearing operations (by PCHC)

j. Revenue Collections (BIR and BOC taxes/duties)

k. BSP-Treasury Department domestic transactions

l. e-Rediscounting deals with BSP-Department of Loans and Credit

m. Annual Supervisory Fees

n. Withdrawal of Excess Reserves with BSP

o. Cash deposits

p. OFW remittances for credit to banks

Future dated interbank transactions payment instructions with value dates greater than the current value date [up to four (4) calendar days] of the system, are accepted but are warehoused and processed only on the date indicated.

Transactions with past value dates (value dates are less than the PhilPaSS system date) are rejected for processing. Only transactions with current value dates or future dated interbank transactions as defined above are accepted for processing and settlement by PhilPaSS.

WHAT ARE THE SYSTEM COMPONENTS OF PhilPaSS?

a. LOGICA Clearing and Settlement System/Central Accounting System (LCSS/CAS)

The LCSS/CAS is the main application in the system. Its basic function is to process incoming SWIFT settlement instructions from

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participants and prompt the accounting and recording of these transactions to the participants DDA with BSP.

b. PhiPaSS Participant Browser (PPB)

A system developed by Logica, Plc., the same provider of the Central Accounting System (CAS) of PhilPaSS, the PPB is a web-based facility which enables PhilPaSS participant-banks to efficiently manage their respective demand deposit accounts (DDA) maintained with the Bangko Sentral ng Pilipinas by (1) allowing the banks designated users to check and verify the status and details of all incoming and outgoing transactions, (2) allowing designated users to re-prioritize or cancel queued payments, (3) allowing users to generate reports on-demand in various file formats (4) enabling banks to transmit their financial transactions to their counterparties through the BSPs LCSS/CAS.

c. SWIFT Network

The existing global communication network of SWIFT is a component of the system that enables the participants to transmit their financial transactions to their counterparties electronically. The participants are required to enroll to SWIFT FIN Copy Service to allow them to transmit directly their PhilPaSS transactions to BSPs LCSS/CAS for processing and settlement.

d. Data Communications

A virtual private network (VPN)

The existing data communications service provider (ORANGE BUSINESS UK LTD) by SWIFT is also a major component of the system that serves as the communication link between the PhilPaSS and the Participants Computer-Based Terminals (CBTs).

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The following diagram shows the basic system components of PhilPaSS:

PhilPaSS (RTGS) COMPONENTS

WHAT IS SWIFT AND SWIFT FIN COPY?

SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. It is a secure, dedicated, global communication network that supports a range of financial messaging services including FIN, its core store-and-forward message processing service. The service provides financial institutions with a wide range of message types for fast, secure transaction and information processing and settlement.

FIN Copy is a message transmission service that has been developed to assist financial communities in the creation of centralized systems such as RTGS or Netting Systems. FIN messages are comprised of structured headers, text and trailers, that conform to internationally accepted standards. Their confidentiality, integrity, and authenticity are ensured by means of:

a. Security of transmission, delivery and message storage b. The encryption of user data within the system, both in transit and on

system storage devices c. Message validation

CORE FINANCIAL

ACCOUNTING SYSTEM (cFAS)

AS/400

(RTGS) CENTRAL

ACCOUNTING SYSTEM

(CAS)

RS6000

REGIONAL CASH TRANSACTIONS

OTHER TRANS AFFECTING DDA

BEGINNING OF DAY

BSP BRANCHES

SWIFT ALLIANCE SERVER

PPS FRONT-

END SYSTEM

THIRD PARTY OPTION

INTRA-DAY cFAS

RTGS

TRANSACTIONS (9:00AM 5:45PM)

TRANSACTIONS (6:00PM)

BSP-CASH DEPT.

SWIFT USERS

NON-SWIFT USERS

MEGALINK

PSSC

EFTIS

PCHC

BUREAU OF THE TREASURY

BSP-TREASURY DEPARTMENT BSP-TREASURY TRANSACTIONS

DELIVERY VS. PAYMENT (GS SALE)

EPCS/ECCS

REVENUE COLLECTIONS

PAYMENT VS. PAYMENT (USD SALE)

ATM TRANSACTIONS

ELECTRONIC CASH WITHDRAWAL

INTERBANK TRANSACTIONS

ELECTRONIC CASH WITHDRAWAL

INTERBANK TRANSACTIONS

BALANCES (09:00AM)

(9:00AM 5:45PM)

(9:00AM 12:00 NOON)

(9:00AM 12:00 NOON)

(90:00AM 5:45PM)

(9:00AM 11:00AM)

(9:00AM 5:45PM)

(9:00AM 2:00PM)

(3:30pm 4:45PM)

- Telerate & PDEx (9:00AM 2:00PM)

INTERNAL TRANS

(9:00AM 5:45PM)

CASH DEPOSITS

BSP-DLC LOANS GRANTS & REPAYMENTS

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WHAT ARE THE MECHANICS FOR THE IMPLEMENTATION OF SWIFT FIN COPY?

The FIN Copy is implemented on a closed user group (CUG) basis and consists of:

Participating financial institutions (FIN Copy users) Central Institution (responsible for clearing, netting, settlement, etc.)

A CUG is a group of users who may, for certain types of message or service, communicate among themselves, but not with users outside the CUG. A CUG has certain defined characteristics. For example, a FIN Copy CUG may define various characteristics such as types of messages that may be FIN- copied among its members.

WHAT ARE THE STANDARD MESSAGE TYPES (MT) AVAILABLE FOR PROCESSING UNDER SWIFT FIN COPY BY THE MEMBERS OF THE CUG?

The following are the standard message types that are available under SWIFT FIN Copy to members of the CUG:

a. MT102 - Multiple customer credit transfer b. MT103 - Single customer credit transfer c. MT202 - General financial transfer d. MT205 - Financial institution transfer execution e. MT298 - Proprietary message type for various functions (i.e.

cancellation request, business priority change request, unsettled payment information)

f. MT920 - Account inquiry request g. MT800 - Payment inquiry request h. MT801 - Request for status of unsettled payments i. MT999 - Free format message

WHAT IS THE SIGNIFICANCE OF SWIFT FIN COPY TO PhilPaSS?

SWIFT FIN Copy provides a simple, flexible and secure way for the BSP to monitor and control financial transactions. FIN Copy uses the facilities of the FIN messaging service, which it enhances by copying selected information to the third party. The service may be used for the clearing, netting and settlement of high value payments, securities and other financial transactions. It allows the users to protect the origin and integrity of their message text by means of double authentication. Standard FIN messages use an authentication mechanism based on bilateral key exchange (BKE) between the sender and receiver. The second message authentication mechanism is based on bilateral key

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exchange between the Central Institution or Central Bank and the receiver. The two (2) authentication processes are both automatic in SWIFT and PhilPaSS to ensure the security of the payment instruction messages that are transmitted by the participants to the System.

There are two (2) copying modes under SWIFT FIN Copy. These are:

a. Y-Copy Mode

FIN Copy intercepts the FIN message and then copies some or all of the information to a Central Institution or Central Bank.

FIN copy holds the message in temporary queue until the Central Bank sends the appropriate authorization or rejection, after which either the message is delivered to the receiver, or the sender receives an abort notification.

b. T-Copy Mode

FIN Copy copies to the Central Bank some or all of the contents of a FIN message that has been delivered to the receiver. The Central Bank is responsible for advising, by separate messages after the event, the sender and the receiver of the status of the transaction.

The BSP is utilizing the FIN Y Copy mode of monitoring and controlling the financial payment instructions of PhilPaSS that are being transmitted through the SWIFT network.

The following diagram shows the basic flow of SWIFT messages that are being sent by a member of SWIFT CUG through the SWIFT network:

S.W.I.F.TSociety for Worldwide InterbankFinancial Telecommunications

BANK A BANK B

225AVERAGE

TRANSACTIONS

SWIFTALLIANCESERVER

X. 25 Leased line

Dial-upConnection

MT 096 MT 097

MT 202 MT 202

IN TO CAS OUT OF CAS

MT 012 or MT 019MT 012 = AcceptedMT 019 = Rejected

CASCENTRAL

ACCOUNTINGSYSTEM

BSP-HO

SWIFT-CAPABLE BANKS in CUG(CLOSED USER GROUP)

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The BKE security mechanism is used to manage relationships with SWIFTNet Phase 1. It provides end-to-end authentication (proof of senders identity) and allows the management of relationships with correspondents. This is because authenticated FIN messages can only be exchanged if a valid bilateral key is established with a correspondent

However, in SWIFTNet Phase 2, Public Key Infrastructure (PKI) digital signatures replace the end-to-end authentication aspect of BKE. The relationship management aspect of BKE is replaced by a new, more powerful way to manage relationships, the Relationship Management Application (RMA) When SWIFTNet Phase 2 was completed in 2008, all SWIFTNet FIN users were mandated to use RMA instead of BKE to manage relationships. SWIFT has designed RMA to be easier to use than BKE. RMA offers more control than BKE including:

Who can send the user messages What they can send (which message types) When they can send messages

The overall objective of RMA is to stop unwanted traffic at the sender. By this, users save time and effort in treating this traffic, and are less exposed to risks of wrongly processing such unwanted traffic. This helps protect the users against audit and regulatory compliance risks, and helps to avoid fines and damage to reputation.

WHAT ARE THE ROLES OF THE PARTICIPANTS AND THE BANKERS ASSOCIATION OF THE PHILIPPINES (BAP), CHAMBER OF THRIFT BANKS (CTB), INVESTMENT HOUSE ASSOCIATION OF THE PHILIPPINES (IHAP), THE RURAL BANKERS ASSOCIATION OF THE PHILIPPINES (RBAP), AND THE PHILIPPINE FINANCE ASSOCIATION (PFA) IN THE OPERATIONS OF PhilPaSS?

a. Participants

Participants shall be responsible for the upgrading, testing and maintenance of their Computer Based Terminal (CBT) for the SWIFT FIN Service Facility or PPS-FES to ensure uninterrupted linkage with the system and shall ensure that a back-up computer site configuration is available to recover the participants systems operations if its primary computer fails.

b. BAP, CTB, IHAP, RBAP, and PFA

The BAP, CTB, IHAP, RBAP and PFA were designated by their members to negotiate and sign the agreement for PhilPaSS and as such, they shall be responsible for ensuring that their member banks/financial institutions adhere strictly to the terms and conditions of the PhilPaSS agreement and PhilPaSS rules and regulations.

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WHAT ARE THE REQUIREMENTS FOR ADMISSION OF NEW PARTICIPANTS TO PhilPaSS?

a. All banks and non-banks with quasi-banking licenses are allowed to participate in PhilPaSS.

b. An applicant is required to send its application for participation and a certification of good membership standing from the association where the institution is affiliated such as the BAP, CTB, IHAP, RBAP, PFA or the Philippine Clearing House Corporation (PCHC).

c. The BSPs Payments and Settlements Office shall advise the applicant on the other PhilPaSS admission requirements immediately after its initial review of the supporting documents submitted by the applicant.

If the application of a prospective participant is deferred due to deficiencies in documentation/requirements, the applicant shall be directed to re-submit its application after it has complied with the documentation requirements.

ARE THERE ADMISSION OR MEMBERSHIP FEES FOR PARTICIPATION IN PhilPaSS?

Other than the qualifying requirements mentioned in the preceding section, there are no admission or membership fees for participation in PhilPaSS. A wide-scale use of PhilPaSS is encouraged to promote over-all financial stability. Participants, however, pay transaction fees for using the system.

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WHAT ARE THE APPLICABLE TRANSACTION AND OTHER FEES OF PhilPaSS?

Effective 01 February 2008, the revised fees (for PhilPaSS transactions, exclusive of SWIFT related costs) are as follows:

TYPES OF FEES New Fees

MBR No. 47 (2008) IMPLEMENTATION DATE

A. Transaction fees

Transaction value Fee per Transaction

1. Interbank (Debits) 1.00 - 100.00 FREE of Charge

101.00 - 500,000 Php 5.00

500,001 - 1,000,000 10.00

1,000,001 - 39,999,999.99 Ad Valorem Fee = Trans. Value x .00001 (Round to nearest Peso)

40,000,000 and Above 400.00

February 1, 2008 2. Payment vs. Payment

(PVP) transactions PFX

February 1, 2008

3. Delivery vs. Payment (DVP) transactions BTr-GS / FIE / Equities

February 1, 2008

4. PCHC transactions (Win / Loss) February 1, 2008

5. ATM Network/MegaLink transactions February 1, 2008

6. Electronic Fund Transfer Instruction System (EFTIS)

7. Customer payments/transfers

February 1, 2008

8. Manual processing of inter-bank transactions: RTGS/EFTIS

P1,000.00 + Ad Valorem Fee (TV x .00001) OR P5,000.00, whichever is LOWER

February 1, 2008

B. Other Fees MBR No. 1851(2003) 1. (Online) Transaction

inquiries Via SWIFT - P100.00 per inquiry

Via PhilPaSS Participant Browser (PPB) - FREE March 2004

February 2012 2. S O A Request (Printout) Via SWIFT - P100.00 per inquiry

Via PhilPaSS Participant Browser (PPB) - FREE March 2004

3. Intraday Liquidity Facility Pending Implementation of the New ILF System March 2004

4. Monthly Access/Connection Fee PCHC MegaLink PSSC

Primary Back-up

FREE FREE FREE FREE FREE FREE

Effective July 2008 (MBR No. 849 dated

2 July 2008)

5. Annual License fee Electronic Fund

Transfer Instruction System (EFTIS)

Phils. Payments System-Front End System (PPS-FES)

FREE

FREE

Effective July 2008

(MBR No. 849 dated 2 July 2008)

6. Administration Fees

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EFTIS/PPS/SWIFT a. Registration new

users/profiles b. Installation of

new/addl workstations (excl. SWIFT)

P2,000.00/user up to two (2) years

P5,000.00/workstation (1st installation is Free of charge)

March 2004

WHAT ARE THE SYSTEM RULES AND REGULATIONS GOVERNING PhilPaSS?

The system rules and regulations governing PhilPaSS are embodied in the Agreement for the Philippine Payments System via Real Time Gross Settlement (PPS-RTGS) and the Rules and Regulations Governing the Philippine Payments System via Real Time Gross Settlement that were signed and approved individually by the PhilPaSS participants.

IS THERE A LIMIT ON THE VALUE OR RESTRICTIONS ON TRANSACTIONS THAT CAN BE ENTERED IN THE PhilPaSS?

There are no limits on the value or type of transactions that can be entered in the PhilPaSS provided both counter-parties are maintaining Demand Deposit Accounts in PhilPaSS and the value dates of the transaction are equal to the current business date of PhilPaSS. If the transactions are future dated, the value dates should not be more than four (4) calendar days than the current value date of the system.

WHAT ARE THE IMPORTANT FEATURES OF PhilPaSS?

The PhilPaSS has the following salient and built-in security features in processing its transactions:

a. Transaction Validation

All settlement and payment instructions by participants are subject to verification to avoid possible duplication or unauthorized payments. The following fields are normally validated prior to final settlement:

b. Audit Trail

i. Transaction reference number ii. Message type iii. Value date iv. Submitters network address (bank identifier

code-BIC)

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The system maintains sufficient information to resolve disputes regarding the processing it had performed on behalf of the participants and the BSP. Its audit records contain the time and date of events and identity of the participant-bank who initiated the transaction.

c. Transaction Status Verification

Participants are able to verify the status of their settlement instructions request by initiating the SWIFT or PPS-FES Payment Inquiry Request. The transactions of the participants may have any of the following status:

i. Pending payment had been on payment queue and settlement status for the payment is still in abeyance.

ii. Warehoused when the payment is received and the value date is greater than the current value date. The System allows warehousing of payments of up to four (4) calendar days.

iii. Rejected transactions that are invalid due to abnormal business reasons (i.e. back-valued transactions, duplicate payment instruction, incomplete BIC of counterparty, invalid payment instruction format).

iv. Settled transactions that were fully accepted, processed and settled by the system.

d. System Inquiries and Reports

Participants may issue the following requests/inquiries and secure various reports through the system using applicable SWIFT/PPS-FES message types:

i. Request for cancellation of payment instruction ii. Report on details of unsettled payments iii. Account inquiry message (account balance, account movements details) iv. Payment inquiry request (details of debit or credit entries to the account) v. Request for status of unsettled payment

e. Payment Queuing Prioritization

Debit instructions that cannot be settled due to insufficient funds in the DDA of the participants will be held on queue until the system has checked that adequate funds are received by the DDA to allow settlement. Pending debit instructions that are on queue will be settled based on business priority in the order of arrival or in First-In-First-Out basis. The system will send an automatic SWIFT advice for the details of the debit instruction that is causing the queue and the participants may then decide whether there is a need to change the business priority of the item in queue or cancel their other payment messages that are also in

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queue. Participants may request the change in business priorities of their other critical and urgent transactions to allow their settlement if there is sufficient balance in their DDA.

f. Gridlock Resolution

The system has the capability to initiate gridlock resolution through its algorithm method every thirty minutes whenever two (2) or more payment instructions of participants remain unsettled. Payment queues that are not settled in the initial gridlock resolution will be considered in the next processing of unsettled payments which will be initiated by the System every thirty (30) minutes to settle payments on queue during the PhilPaSS business day.

g. Intraday Liquidity Facility (ILF)

The system also provides the processing of ILF to ensure the continuous settlement of interbank transactions and to avoid payment gridlock in the system. Any participant who wishes to avail itself of the ILF will have to submit the required documentation to obtain approval from the BSP Treasury Department in coordination with the Bureau of Treasury (BTr).

Access procedures to BSPs ILF System are provided for under a separate, independent Memorandum of Agreement (MOA).

HOW PhilPaSS WORKS?

1. At 8:55 am, PhilPaSS extracts the beginning balances of the Demand Deposit Account of each participant bank from the BSPs Core Financial Accounting System which maintains the General Ledger of Accounts. From 9 am to 5:45 pm, PhilPaSS accepts transactions from its participants and third party systems providers.

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2. To illustrate an interbank fund transfer or settlement of obligation of one bank with another bank, Bank A sends electronic message to PhilPaSS thru SWIFT or PhilPaSS Participant Browser (PPB) to debit its Demand Deposit Account (DDA) and credit the DDA of its counterparty, Bank B.

3. Electronic message instructions are transmitted to PhilPaSS via SWIFT/PPB. PhilPaSS determines if there is adequate balance in Bank As DDA. If DDA balance is sufficient, PhilPaSS settles the transaction.

4. PhilPaSS sends payment confirmation to Bank A and Bank B via SWIFT/PPB that transaction has been settled (debit/credit).

5. During the same day, data files from the third party service providers containing the net results of their operations are sent to BSP for settlement in the DDA of the participant banks. In the settlement of each of the transactions in the data files received, processes nos. 2-4 above apply.

6. PhilPaSS automatically stops receiving electronic transactions at 5:45 pm. However, transactions that are still in transit at the time the system closes can still be accepted by PhilPaSS for processing as long as these transactions have been acknowledged by SWIFT/PPB. Participants who need to settle obligations after the PhilPaSS cut-off time may send their transactions to PSO for settlement in the PSO manual settlement window. The window for manual settlement is from 5:46 to 6 pm. At 6:05, PhilPaSS generates the ending balance of the DDA of each bank, and transfer all the transactions to cFAS for posting to the General Ledger.

7. PSO closes at 7:00pm after it has generated all the required reports and has performed other housekeeping procedures.

WHAT ARE THE OPERATING HOURS OF PhilPaSS?

Transactions in PhilPaSS are concluded by and among participants during the following timelines:

TIMELINES ACTIVITY

Back Value Window 7:30 a.m. 8:00 a.m. Posting/Settlement of PCHC AM Returns 8:01 a.m. 8:45 a.m. BSP/Interbank window for Losses in AM Returns 9:00 a.m. RDDA balances (T-1) available on demand via EFTIS

Current Days Window 9:00 AM Start of PhilPaSS business hours

Beginning balances generated for PhilPaSS-RDDA

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Regular window for same day interbank transactions Posting/settlement of other RDDA transactions (i.e. BTr and other BSP departments) Following are the cut-off times set for particular transactions: 11:00am - ATM transactions 12:00 noon - BSP-ECWS 4:00 pm - BTr - GS DvP transactions 4:00 pm - PSH - eDVP/Repo transactions

5:45 pm - PCHC-EPCS/ECCS, BSP-RP/RRP, PSH-PvP, Interbank Borrowing/Lending

4:45 PM 5:45 PM Trading and settlement for end-of-day liquidity and reserve positions During the day, banks can inquire their balances in PhilPaSS either through SWIFT MT920*/950 or PhilPaSS Participant Browser reports.

5:46 PM - 6:00 PM PhilPaSS window for manual settlements, if any. 6:00 PM PhilPaSS Close of Business Up to 6:15PM. Final copy of PhilPaSS-RDDA balance via MT950 *request of statement thru MT920 will generate MT941 or 942

In the event that a non-working day for government agencies but not for banks is declared, the following policies will be observed by the BSP and PhilPaSS participants:

a. If the declaration is received by the BSP prior to or on the same day as the date covered by declaration:

Time of Receipt of Announcement PhilPaSS Check Clearing

Treasury Window Reserve

Non Reserve

1. On an ordinary business day prior to the date of effectivity

Closed No settlement

Closed

2. On a Saturday or Sunday to take effect the following Monday or on a non-working holiday to take effect the next business day

a. Under good weather conditions

Open Normal Open

b. Under bad weather conditions, i.e., Typhoon signal no. 3

Closed No clearing

Closed

3. Before 9:00am on the same date as effectivity

Closed No clearing

Closed

4. After 9:00am on the same date as effectivity (Day 1)

Open 1:00PM

Normal Suspended; to be resumed the following day at 9:01am to 9:45am

(Day 2) Open 1:00PM

Normal Open

5. In case of suspension of work is extended to Day 2

a. Before 9:00am of Day 2 (Day 2)

Closed No settlement

Closed; Day 1 transactions

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will be moved to Day 3 (for value Day 1)

(Day 3) Open Normal Resumed from 9:01-9:45am (for value Day 1) Then, 4:45-5:30 for same day transactions

b. After 9:00am of Day 2 (Day 2)

Open Normal Resumed from 9:01-9:45am (for value Day 1), Then, Day 2 transactions suspended to be resumed the following day from 9:01am to 9:45am

(Day 3) Open Normal Resumed from 9:01-9:45am (for value Day 2), then, 4:45pm to 5:30pm for same day transactions

6. In case the suspension if work does not apply to all govt offices (Manila Day, Quezon City Day)

Open Normal Open

b. Since the prior days end-of-day procedures will be performed on the following banking day from 9:00AM to 1:00PM, there will be a maximum four (4) hour delay in the system opening of the next banking day (i.e., to start at 1:00PM instead of 9:00AM).

c. If work suspension is extended up to the next banking day, banks shall close, but they may opt to conduct over-the-counter transactions. There will be no clearing and it will be considered a Non-Reserve day. Transactions will be valued the next banking day.

d. The BSP may suspend the BSP trading and settlement windows as the need arises under abnormal situations.

e. Peso-US Dollar trading shall also be available unless jointly suspended by the BSP and the BAP.

CAN A PARTICIPANT REQUEST THE REVERSAL OF ITS SETTLED TRANSACTION IN CASE AN OMISSION OR ERROR WAS COMMITTED IN THE TRANSMISSION OF ITS PAYMENT

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INSTRUCTION (i.e., INCORRECT COUNTER-PARTY, OVERSTATED AMOUNT)?

All transactions settled in PhilPaSS are considered final and irrevocable. Participants are therefore not allowed to request the reversal of their erroneous transactions from the BSP Payments and Settlements Office. Participants may request for the cancellation of their payment instruction through the standard SWIFT/PPS-FES message format SMT200 if the payment instructions are still unsettled and pending in the system.

IN THE EVENT THAT PhilPaSS IS INOPERABLE, HOW WILL THE PARTICIPANTS TRANSMIT THEIR PAYMENT INSTRUCTIONS TO THE BSP FOR PROCESSING AND SETTLEMENT?

PhilPaSS has two (2) back-up systems, the local back-up facility within the BSP Complex and the off-site location that can be made operational immediately in the event that the primary site is inoperable. In case the two back-up systems are also inoperable due to extraordinary circumstances, the BSP can activate its existing Electronic Fund Transfer Instruction System (EFTIS) to allow the participants to send their interbank instructions to BSP for processing and settlement. All PhilPaSS participants will be duly advised through SWIFT and PPS-FES message/advisories on the contingency plan(s) that the BSP will initiate in case PhilPaSS primary site is encountering technical problems.

HOW CAN A PARTICIPANT TRANSMIT ITS PAYMENT INSTRUCTION TO PhilPaSS IN CASE ITS SWIFT COMPUTER-BASED TERMINALS OR PPS-FES ENCOUNTER CONNECTIVITY PROBLEM WITH PhilPaSS?

The participants may resort to manual settlement by accomplishing the PhilPaSS COB Manual Settlement Form and transmit the same (via fax) to BSP-PSO for processing and settlement. After processing and settlement, i.e. signature-verification, encoding and authorization, the BSP-PSO shall return (via fax) the processed PhilPaSS COB Manual Settlement Form to the sending participant-bank indicating that the requested manual instruction settlement has been effected.

WHICH BSP DEPARTMENT CAN THE BANKS/FINANCIAL INSTITUTION CONTACT FOR REFERRAL AND ASSISTANCE, FOR INQUIRIES RELATED TO PhilPaSS?

The banks/financial institutions may contact the following departments/ units in BSP for any operational problem/issues/queries related to PhilPaSS:

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For policy and operational matters

BSP Payments and Settlements Office - Bella S. Santos 708-7542 bsantos@bsp.gov.ph - Eleanor S. Turaray 302-4184 eturaray@bsp.gov.ph 523-3756

For payment, settlement, and other inquiries

BSP Payments and Settlements Office - Help Desk e-mail: Payments_Unit@bsp.gov.ph

Help Desk Nos. - Remedios C. Macapinlac 400-7071 - Ma. Victoria H. Francisco 400-7073 - Leticia A. Barroga 400-7022 400-7024 400-7062

523-3756

For system/hardware and technical matters

Information Technology Sub-Sector - Natividad C. Rigodon 302-4191 nrigodon@bsp.gov.ph

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PhilPaSS PARTICIPANTS

UNIVERSAL BANKS

Name of bank BIC Contact person Tel. No. E-mail Address

Allied Banking Corporation ABCMPHMMXXX Melita C. Tan 816-5541 mctan@alliedbank.com.ph

Asia United Bank Corporation AUBKPHMMXXX

Isabelita M. Papa papaim@asiaunited.com.ph

Zita M. Los Baos 635-0458 losbanoszm@asiaunited.com.ph Australia and New Zealand Bank ANZBPHMXXXX Lora E. Lopez

818-8117 lopezm@anz.com

Banco De Oro Universal Bank BNORPHMMXXX Ruby A. Chua

840-7000 loc 8200 rac@bdo.com.ph

BDO Private Bank BOPBPHMMXXX

Racquel D. Maago 848-6296 manago_racquel@pb.bdo.com.ph

Oscar C. Pambid 848-6300 loc. 129 ocp@pb.bdo.com.ph

Ramona T. Torres 848-6300 loc. 123 rtt@pb.bdo.com.ph

Bangkok Bank Public Company Ltd BKKBPHMMXXX Phisit Charoenphan

752-0333 bangkokbank@bbl.com.ph

Bank of America NA Manila BOFAPH2XXXX Henry T. Pelaez 815-5600 henry.pelaez@bankofamerica.com Bank of China Manila Branch BKCHPHMMXXX

Dong Xiao Xia 885-0111 loc 105/103 bocmnl_actg@bocgroup.com Marina B. Espinosa

Bank of Commerce PABIPHMMXXX Wilma M. Escoto 810-0616 wmscoto@bankcom.com.ph

Bank of the Philippine Islands BOPIPHMMTRY Corazon S. Tumbocon

816-9188 cstumbocon@bpi.com.ph

Bank of Tokyo Mitsubishi Ltd. BOTKPHMMXXX

Julieta D. Taopo 886-7371 loc 401 juliet_taopo@ph.mufg.jp Diana Juguilon 886-7415

China Banking Corporation CHBKPHMMXXX

Fernando S. Santos III 885-5677 fssantos@chinabank.ph

Wilfredo L. Sy 247-5353 wlsy@chinabank.ph

David Andrew P. Valdellon

885-5207 dapvaldellon@chinabank.ph

Chinatrust Phil Commercial Bank CTCBPHMMXXX Oliver D. Jimeneo

848-7156 oliver.jimeneo@chinatrust.com.ph

Citibank NA Manila Branch CITIPHMXXXX Joanna S. Paraiso 894-7150 tricie.paraiso@citi.com

CitiBank Treasury Unit 0043ITIPHMXTSU Vivien I. Lugo 894-7340

vivien.lugo@citi.com

Gabriel R. Tomas 894-7451 gabby.tomas@citi.com

Deutsche Bank AG DEUTPHMMXXX Wilfredo E. Trinidad 894-6845

wilfredo.trinidad@db.com

Christina I. Lara 894-6696 christina.lara@db.com

East West Banking Corporation EWBCPHMMXXX Martin B. Ordoez

830-8992 mbordonez@eastwestbanker.com

Hong Kong and Shanghai Bank HSBCPHMMXXX

Glenn S. Moneda 581-7072 / 73 glennmoneda@hsbc.com.ph Jun C. Santos 530-5443

ING Bank NV INGBPHMMXXX Efren Reyes, Jr. 479-8777

efren.reyes@asia.ing.com

Benjamin A. Rodriguez 479-8828 banjo.rodriguez@asia.ing.com

JP Morgan Chase Bank CHASPHMMXXX Mamerto R. Natividad 878-1169

mert.r.natividad@jpmorgan.com Irene L. Garcia 878-1187 irene.l.garcia@jpmorgan.com

Mega International ICBCPHMMXXX Dorian Wu 811-5807

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Commercial Bank Co. Ltd. icbcphmm@info.com.ph

Korea Exchange Bank KOEXPHMMXXX Emelita S. Alba 848-0101 loc 207 & 208 kebmanila@keb.co.kr

Olivia Joves 848-0101 loc 207 & 208 olivia_joves@keb.co.kr

Maybank Philippines Incorporated MBBEPHMMXXX Esperanza B. Cabreros

523-7777 locs. 123 ebcabreros@maybank.com.ph

Metropolitan Bank & Trust Co. MBTCPHMMXXX

Dennis G. Suico 857-5376 dennis.suico@metrobank.com.ph

Eduardo C. Ramirez 898-8940 eduardo.ramirez@metrobank.com.ph

Angel O. Pagaspas 898-3837 angel.pagaspas@metrobank.com.ph

Mizuho Corporate Bank MHCBPHMMXXX Tetsuharu Ishizuna 860-3500 tetsuharu.ishizuna@mizuho-cb.com

Philippine Bank of Communications CPHIPHMMXXX

Angel M. Corpus 893-1439 amcorpus@pbcom.com.ph

Aurora C. Mangerra 893-3364 acmangerra@pbcom.com.ph

Philippine National Bank PNBMPHMMTOD Teresita S. Cruz 831-3257

cruzts@pnb.com.ph

Josefina T. Fullante 526-3040 fullantejt@pnb.com.ph Philippine Veterans Bank PHVBPHMMXXX Joselito R.G. Nazario 751-8590 jgnazario@veteransbank.com.ph Philtrust Bank PHTBPHMMXXX Antonio H. Ozaeta 524-9061 ptc@philtrustbank.com

Rizal Commercial Banking Corp. RCBCPHMMXXX

Teofila D. Garces

Vivien L. Macasaet

894-9036 tdgarces@rcbc.com 894-9886 vilugo@rcbc.com

Robinsons Bank Corp. RBSPPHM1XXX Sylvia Herrera 702-9500 loc. 239 sylvia.herrera@robinsonsbank.com.ph

Security Bank and Trust Corp. SETCPHMMXXX Belen W. Au

888-7329 bau@securitybank.com.ph

Standard Chartered Bank SCBLPHMMXXX Seow Pang 878-2875 ng.seow-pang@.standardchartered.com

Union Bank of the Philippines UBPHPHMMXXX

Mardonio C. Cervantes 638-0323 junc@unionbankph.com Doris Pagsisihan 667-6425 drpagsisihan@unionbankph.com

United Coconut Planters Bank UCPBPHMMXXX Arnel A. Valles

811-9303 aavalles@ucpb.com

SPECIALIZED GOVERNMENT BANKS Bank BIC Contact person Tel. No.

Al Amanah Islamic Bank ALAMPHM1XXX

Nurzalyn H. Ladjabassal (Treasury)

816-4260 nhladjabassal@al-amanahbank.com

Maharlika J. Alonto (Accounting)

816-4259 mjalonto@al-amanahbank.com

Development Bank of the Philippines DBPHPHMMXXX Dionisio Sarmiento, Jr.

810-3023 / 812-9427 djrsarmiento@dbp.ph

Land Bank of the Philippines TLBPPHMMXXX

Merceditas N. Oliva 405-7528 moliva@mail.landbank.com

Fely E. Joves 405-7235 fjoves@mail.landbank.com

THRIFT BANKS

Bank BIC Contact person Tel. No. E-mail Address

Allied Savings Bank ASTBPHM1XXX Jaime L. del Bariio, Jr. 812-8352 delbarriojrjl@alliedbank.com.ph

Asiatrust Development Bank ASDVPHM1XXX Maria Patricia L. Salcedo Carolyn R. Corro 924-5685 / 924-5639 mplsalcedo@asiatrustbank.com tpu@asiatrustbank.com

Bank One Savings & Trust ONSTPHM1XXX Ma. Cristina L. Garcia 713-6585

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Corp. bankone_tsy@tri-isys.com

BDO Elite Savings Bank GEMBPHM1XXX Arlene Joan T. Agustin 777-8686 arlene.agustin@ge.com

BPI Direct Savings Bank BPDIPHM1XXX Raul D. Dimayuga 845-5304 rddimayuga@bpi.com.ph

BPI Family Savings Bank BPFFPHM1XXX Lucinda M. Peralta 754-6743 lmperalta@bpi.com.ph

BPI Globe BanKO BGTBPHM1XXX Teresita B. Tan 722-8714 JCSY@bpi.com.ph

Century Savings Bank CENSPHM1XXX Josephine Ty Chua 910-4780 to 87 centurybank@globelines.com.ph

Chinabank Savings MABCPHM1XXX Rafael V. Acoba 864-5067 / 988-5555 loc.8785 rvacoba@manilabank.com

Citibank Savings CSINPHM1XXX Belen M. Dulay 423-6641 belen.m.dulay@citi.com

Kristine C. Yujeco 995-9259 paw.yujeco@citi.com City Savings Bank CTSBPHM1XXX Linda Flor P. D. Hortezano

(032)412-1747 lhortezano@citysavings.com.ph

Citystate Savings Bank CTYSPHM1XXX Edgardo O. Olavario 6374195 eoolavario@citystatesavings.com

Dumaguete City Development Bank DCTBPHM1XXX Julio O. Sy, Sr.

(035)225-3891 / 225-3892 / 422-9223 -94 dcdbank@globelines.com.ph

Dungganon Bank DBTBPHM1XXX Syrel Z. Aplaon (034)432-3720 loc 112

szaplaon@dungganonbank.com Dorothy Jacinto ddjacinto@dungganonbank.com

Equicom Savings Bank ESBBPHM1XXX Romali S. Yango 815-1049-53 loc. 127 yango@equicomsavings.com.ph Racquel G. Robillos robillos@equicomsavings.com.ph

First Consolidated Bank. FIOOPHM1XXX Sereno S. Sarabia (038)411-5045 rss@greendot.com.ph

GSIS Family Bank GSISPHM1XXX Reynan B. Montojo 706-0477 rbmontojo@gsisfamilybank.com

HSBC Savings Bank HSBSPHM1XXX Glenn S. Moneda 581-7072 / 581-7073 glennmoneda@hsbc.com.ph

Hiyas Banking Corporation HBTBPHM1XXX Marilyn R. Cruz (044)641-1747 hiyasbank@yahoo.com Isla Bank ISTHPHM1XXX Elsie R. Peol 840-4014 / 840-4007

erpeol@islabank.com

Luzon Development Bank LUDVPHM1XXX Tita O. Isleta 896-2655 / (049)531-3700 toisleta@luzondevbank.com.ph Malayan Bank SMB MAARPHM1XXX Ma. Lourdes A. Morales 840-1811 treasury@malayanbank.com.ph Merchant Savings and Loan Association MRCBPHM1XXX Marilyn F. Suarez

894-9000 loc 1290 mfsuarez@rcbc.com

Microfinance Maximum Savings Bank (Maxbank) MXTBPHM1XXX Ms. Lorna R. Taotjo

(043)287-3480 Ltaotjo@maxbank.com.ph

Optimum Development Bank OPDBPHM1XXX Mary Anne B. Antazo

584-1492 mbantazo@optimum.com.ph

Pacific Ace Savings Bank PATBPHM1XXX Rosario B. Aotriz rose.aotriz@pacific-ace.com

Palawan Development Bank PWDBPHM1XXX Eric A. Mondragon (048)433-2489 head.office@thepalawanbank.com Penbank (A Private Development Bank) PBTBPHM1XXX Brainard F. Rapisora

(083)552-8788 bfrapisora@penbank.com.ph

Philippine Business Bank PPBUPHM1XXX Alice P. Rodil 363-3333 loc.2004 rodil_ap@pbb.com.ph

Philippine Postal Savings Bank PHPSPHM1XXX Reynaldo C. Eustaquio

527-9570 postalbank.treasury@gmail.com

Philippine Savings Bank PHLSPHM1XXX Noli S. Gomez 885-8241

nsgomez@psbank.com.ph

Jay S. Velasco 885-8367 jsvelaco@psbank.com.ph

Planters Development Bank PLDEPHM1XXX Herman C. Salazar 840-2419 hcsalazar@plantersbank.com.ph

Linda C. Yu 884-7600 loc. 5651 lcyu@plantersbank.com.ph

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Producers Savings Bank PSTBPHM1XXX Josefina S. Monegas 667-3022 / 667-3021 josefina.monegas@producersbank.com.ph

Queen City Development Bank QCDFPHM1XXX Alicia G. Sangrador

(033)336-8052 to 56 loc 119/120 treasury@queenbank.com.ph

RCBC Savings Bank RCSBPHM1XXX

Jo-Anne C. Chan 894-9000 loc 2347 jcchan@rcbcsavings.com Ma. Dorothy D. Mendoza ddmendoza@rcbcsavings.com

Rosemarie B. Maquiling maquiling@rcbcsavings.com

Cristina F. Villalobos 894-9000 loc. 1230 cfvillalobos@rcbcsavings.com

Real Bank RLBKPHM1XXX Raquel T. Cabawatan 920-4526 / 927-4174 rtcabawatan@realbank.com.ph

Security Bank Savings PRDEPHM1XXX Vilma U. Constantino 853-0394 to 96 vuconstantino@premierebank.com.ph

Sterling Bank of Asia, Inc. SBAIPHM1XXX

Joseph T. Sulit 535-6120 jtsulit@sterlingbankasia.com Desiree Manlapaz-Guerero

535-6129 dtmanlapaz@sterlingbankasia.com

Florenda C. Noche 535-6143 fcnoche@sterlingbankasia.com

Sun Savings Bank SUSBPHM1XXX Augusto S. Gonzalez (032)272-9981 / 462-2011 asgonzalez@sunsavings.ph

Tong Yang Savings Bank Inc. TYBKPHM1XXX Belen E. Asuncion

845-3837 / 845-3838 loc.303 belena@tongyang.com.ph

UCPB Savings Bank UCSVPHM1XXX Evangeline P. Reyes 811-9082 epreyes@ucpb.com

United Overseas Bank Philippines UOVBPHMMXXX

Gerardo Munarriz 6700-8878 relos.ag@uob.com.ph

David C. E. Goh 6700-8686

World Partners Bank WRDPPHM1XXX Roehl O. Dumlao 868-8167 rodumlao@worldpartners.com.ph

RURAL BANKS

Bank BIC Contact person Tel. No. E-mail Address

Aliaga Farmers Rural Bank AFRBPHM1XXX Judy L. Badua (044)945-0030 / 945-0037 farmbank_ho_1995@rbap.org Balanga Rural Bank BARBPHM1XXX Rose Ann Villanueva 237-2820 / 237-2651

rbbalanga@rbap.org

Banco Rural ng Pasacao PSRBPHM1XXX Carlos F. Velasco (054)513-9113 / 513-9376 brpasacao@rbap.org Banco Santiago de Libon BSRBPHM1XXX Lenieza S. Secreto (052 486-2828 Bsdl1973@yahoo.com Banco San Enrique (A Rural Bank) SERBPHM1XXX Arturo P. Muyco, Jr.

(033)335-0355 Rbse2002@yahoo.com

Bangko Kabayan BKRBPHM1XXX Cherry Lou F. Bacia (043)311-1420 cherrlou.bacia@bangkokabayan.com.ph

Bangko Mabuhay, Inc. RTRBPHM1XXX Edwin S. Fojas (046)489-2001 to 04 info@bangkomabuhay,com Bank of Florida, Inc. BFRBPHM1XXX Atty. Elisa M. Laqui (045)963-5288 to 90 bankofflorida@rbap.org Bank of Makati BMRBPHM1XXX Shirley O. Tan 843-2060

shirlvic_tan@yahoo.com

BHF Rural Bank BHRBPHM1XXX Reynaldo B. Bonifacio (072) 242-0495 to 96 boss@bhf.com.ph Cebuana Lhuillier Rural Bank CLRBPHM1XXX Rosalinda O. Matias

473-6002 Manila / (046)417-3366 rmatias@pjlhuillier.com

Classic Rural Bank CSRBPHM1XXX Rustica E. Comia (043)723-5554 classicrb@rbap.org

Cooperative Rural Bank of Bulacan CBRBPHM1XXX Emilie P. Dancel

(044) 670-0858 / 795-1544 epdancel@crbbulacan.com.ph

Country RB of Taguig TARBPHM1XXX Raul T. Guerrero 738-7759 crbti_ho@yahoo.com

Crown Bank CWRBPHM1XXX Reynaldo V. Bondoc (045)652-0006

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crownbank@rbap.org

First Isabela Cooperative Bank FIRBPHM1XXX

Emilio U. Rico (078)307-0998 / 307-0940 emil@yahoo.com

Atty. Hubert E. Molina hubertemolina@yahoo.com First Macro Bank (A Rural Bank) FMRBPHM1XXX Arlene B. dela Rosa

642-1620 loc. 112 1stmn.arlene@gmail.com

First Midland Rural Bank FDRBPHM1XXX Rodolfo P. Yap, III (033)530-9027 / 396-0737 fmrbi@yahoo.com; randy_yap@yahoo.com

Enterprise Bank EBTBPHM1XXX Lourdes S. Cataquiz (02)847-6569 Gateway Rural Bank GWRBPHM1XXX Jeditte Margaret Coloma (044) 693-3451 gatebankruralbank@yahoo.com GM Bank GMRBPHM1XXX Tomas S. Gomez IV (044) 940-6000 tg4@gmbank.com.ph Guagua Rural Bank GGRBPHM1XXX Iluminda M. Dizon (045) -901-0234 idizon@yahoo.com Janiuay Rural Bank JARBPHM1XXX Ma. Jian L. Barredo (033) 531-8430

rbjaniuay@rbap.org Katipunan Bank (Zamb del Norte), Inc.A Rural Bank KTRBPHM1XXX Leticia G. Loquinario

(065) 212-9807 ebh.esparaguera@katipunanbank.com

Limcoma Rural Bank LCRBPHM1XXX Menie B. Valle (043) 726-2602 limcomarb@rbap.org

Lipa Rural Bank LBRBPHM1XXX Paulynne Rose G. Go (043)756-2411 loc 204 lipabank@yahoo.com Municipal RB of Libmanan LIRBPHM1XXX Nordita B. Malinao (054)511-8178 / 451-2184

mrblibmanan@rbap.org

One Network Bank NWRBPHM1XXX Alex V. Buenaventura (082)234-3631 onrbi@onenetworkbank.com.ph

Planbank Rural Bank of Canlubang Planters, Inc.

PBRBPHM1XXX

Imelda D. Edeza Cyren L. Dalisay

(049)545-7094 to 96 ide@planbank.org

Quezon Capital Rural Bank QCRBPHM1XXX Evelyn B. Saculles (042)710-3182 ebsaculles@qcrblive.com

Racsos Bank, Inc. ( A Rural Bank)

RCRBPHM1XXX

Janette Garin-Colada (033)315-5005 / Fax (033)315-5582 racbankguimbal@yahoo.com

Rang-ay Rural Bank RARBPHM1XXX Ives Q. Nisce (72)242-5661 to 63 headoffice@rangaybank.com Rural Bank of Abucay ABRBPHM1XXX Romeo T. Tumalad (047)244-4145 bancoabucay@yahoo.com Rural Bank of Calinog (Iloilo), Inc. CIRBPHM1XXX Lirio A. Gustilo

(033)347-1924 rbcalinog@yahoo.com

Rural Bank of Camalig (Albay), Inc.

CMRBPHM1XXX

Rosemarie N. Orpiada (052)480-0801 camaligbank@gmail.com

Rural Bank of Guinobatan GURBPHM1XXX Paulo R. Honrado (052)484-6439 rbguinobatan@yahoo.com.ph

Rural Bank of Jaen JNRBPHM1XXX Joel Dasig Binuya (044) 486-5572;486-2702 rbjaen@rbap.org

Rural Bank of Jose Panganiban JPRBPHM1XXX Roberto V. Torres

(054)731-1046 / 731-1138 Rbjpinc-jpcnorte@yahoo.com

Rural Bank of Liloy LLRBPHM1XXX

Ms. Myrienn L. Sisor (065)311-1022 rbliloy@rbap.org

Rural Bank of Limay LMRBPHM1XXX Nory F. de la Cruz (047)244-4501 / 243-8462 rblimay@rbap.org

Rural Bank of Miagao MLRBPHM1XXX Rey N. Flores (033)315-8005 / 513-7716 rbmiagao@rbap.org

Rural Bank of New Washington (Aklan), Inc. WNRBPHM1XXX Raul D. Balandra

(036)264-3355 / 264-3358 rbnewwashington@rbap.org

Rural Bank of Oton (Iloilo), Inc.

OTRBPHM1XXX

Maria Ramona P. Magalona Alma T. Tachagon

(033) 337-1702 nina@rbankoton.com/rboton@rbap.org

Rural Bank of Pagbilao RPRBPHM1XXX Don Martin Glorioso (042)731-1380 rbpagbilao@yahoo,com

Rural Bank of Pilar (Bataan), Inc. PIRBPHM1XXX Rodolfo D. Pizarro

237-2560; 791-5398 rbpilar@rbap.org

Rural Bank of San Jose (CamSur), Inc. SIRBPHM1XXX Tim James L. Monasterio

(054) 472-3295 bankofsanjose@yahoo.com

Rural Bank of San Vicente SVRBPHM1XXX Catherine D. Torres (054)447-3020 / 440-1432 rbsanvicente@rbap.org

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Rural Bank of Sasmuan SMRBPHM1XXX Geraldine S. Limpin (045)900-2507 / 434-0636 sasbanksasmuan@yahoo.com

Rural Bank of Sipocot (Camarines Sur), Inc. SPRBPHM1XXX Milagros C. Florin

(054)256-6011 rbsipocot@rbap.org

Rural Bank of Sta. Ignacia (SIGNA Bank) SIRBPHM1XXX Roman L. Belmonte, Jr

(045) 605-0058; 605-0327 signabank@rbap.org

San Fernando Rural Bank SFRBPHM1XXX Mr. Hener C. Nilo (045)963-3620 Saferbank@rbap.org Tiaong Rural Bank TORBPHM1XXX Carlo Angelo T. Trinidad (042)652-1950 / 545-8450

catrinidad@trbi.com.ph

Valiant Bank VBRBPHM1XXX Maria Thelma Louella M. Guillamas (033)338-3524 / 336-8440 Mtlmg033@yahoo.com.ph

Zambales Rural Bank ZMRBPHM1XXX Maria Leonora C. Faustino (047)223-4964 / 222-2678 zbolo@info,com.ph

NON-BANK QUASI BANKS

Bank BIC Contact person Tel. No. E-mail Address

AB Capital and Inv. Corp. CAVPPHM1XXX Ricardo E. Enriquez 898-7559 reenriquez@abcapital.com.ph

BPI Capital Corp BPAPPHM1XXX Teodoro K. Limcaoco 816-9612 tklimcaoco@bpi.com.ph

BPI Card Finance Corp. BPCNPHM1XXX Ms. Ma. Ysabel P. Sylianteng 816-9519 bpi_ucad_regulatory@bpi.com.ph

BPI Leasing Corp BPLIPHM1XXX Samuel C. Tang 816-9758 sctang@bpi.com.ph

First Malayan Leasing & Fin. FMLFPHM1XXX

Lovella A. Barcenas

Irma E. Japson

8109660 loc. 131 labarcenas@malayanleasing.com 810-9668 loc 121 ejapson@malayanleasing.com

First Metro Investment Corporation FMICPHM1XXX Danilo G. Olondriz

243-3058 danny.olondriz@firstmetro.com.ph

Metrobank Card Corporation MCNBPHM1XXX

Annalyn T. Famy 898-7082 afamy@metrobankcard.com

Maribeth Rosales 898-7392 mrosales@metrobankcard.com

Multinational Investment Bancorporation MUIAPHM1XXX Evelyn D. Katigbak

811-0095 / 817-1511 loc.214 operations@mib.com.ph

Orix Metro Leasing and Finance Corporation OXNBPHM1XXX Edna L. Layosa

858-8835 ellayosa@orix.com.ph

Philippine Commercial Capital Inc. PCCIPHM1XXX Willie G. Mondia

813-3423 / 815-0628 loc. 140 willie.mondia@pccigroup.com.ph

Philippine Depository & Trust Corp. PDTCPHM1XXX Teresa N. Napilay

884-5034 tere_napilay@pds.com.ph

RCBC Capital Corporation RCCOPHM1XXX Ruth B. Gutierrez 845-3406

rbgutierrez@rcbc.com

Jaywin R. Mina 894000 loc 2218 jrmina@rcbc.com

State Investment Trust Inc. STIVPHM1XXX Ma. Luisa O. Bongat Judith B. Enriquez

242-6888 / 242-1140 stateinc@info.com.ph stategroup_cashdepartment@yahoo.com

Toyota Financial Services Phils. Corp. TNBKPHM1XXX

Rosalie R. Palatino 756-7423 sally.p@toyotafinancial.ph

Carissa Panlaque 756-7431 carissa.panlaque@toyotafinancial.ph

BSP OFFICES

Department/Office BIC Contact person Tel. No. E-mail Address

BSP Payments and Settlements Office PHCBPHMDXXX

Bella S. Santos 708-7542 bsantos@bsp.gov.ph

Eleanor S. Turaray 302-4184 eturaray@bsp.gov.ph

BSP Provident Fund Office Victor G. Garlitos 525-0765 vgarlitos@bsp.gov.ph

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CB Housing Fund CBPHPHM1XXX CB Provident Fund CBPFPHM1XXX CB Car Plan Fund CBCPPHMIXXX CB Housing Fund III CBHTPHM1XXX CB Longevity Trust Fund CBLTPHM1XXX PFO Cebu Pacific Ticketing CBCEPHM1XXX

THIRD PARTY SYSTEM PROVIDERS

Agency/Department/Office BIC Contact person Tel. No. E-mail Address

Bureau of the Treasury Eduardo S. Mendiola 527-3183; 522-8122 loc 204 esmendiola@treasury.gov.ph

Philippine Clearing House Corporation Eduardo J. Katigbak, Jr.

886-1348 ed.katigbak@pchc.com.ph

Philippine Dealing System (PDS) Baby dela Cruz

884-5025

baby_delacruz@pds.com.ph

BancNet Elmarie Reyes 856-8190; 856-8196 emmie.reyes@bancnetonline.com

MegaLink Jennifer M. Tantan 892-1046 jmt@megalink.ph

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REFERENCES

Bank for International Settlements Committee on Payment and Settlement Systems, A glossary of terms used in payments and settlements system. 2003

Bank for International Settlements Committee on Payment and Settlement Systems, Core Principles for Systemically Important Payment System, 2001

Bangko Sentral ng Pilipinas, Agreement for the Philippines Payment System via Real Time Gross Settlement (PPS-RTGS). 2002

Bangko Sentral ng Pilipinas, Rules and Regulations Governing the Philippines Payments System Via Real Time Gross Settlement (PhilPaSS)

SWIFT, SWIFT FIN Copy Service Description. March 2000

SWIFT, SWIFTNet Messaging Service SWIFTNet RMA Service. March 2008

Bank of England, Oversight of Payment Systems. November 2000

Bank of England, Settlement Accounts. November 2002

Lamberte, Mario, The Philippine Payment System: Efficiency and Implications for the Conduct of Monetary Policy. (Discussion paper Series No. 2001-20)