Why it matters
PDDTS and PvP are critical to maintaining financial stability and liquidity in the country.
Both systems were designated by the Bangko Sentral ng Pilipinas (BSP) in 2022 as systematically important payment systems (SIPS) — recognizing their vital role in the Philippine financial ecosystem.
The agreement
The agreement was formally signed on Aug. 28, 2025, extending the collaboration until Aug. 17, 2030.
BAP president TG Limcaoco described the renewal as a milestone in collaboration, saying: “The success of PDDTS and PvP has always been a story of collaboration. Together, we will continue to strengthen our systems, adapt to change, and serve the needs of our economy.”
System enhancements
The renewed partnership includes:
Supporting stability
Since its launch in 1995, PDDTS has enabled real-time domestic U.S. dollar transfers among banks. PvP, introduced in 2003, reduces settlement risk in cross-currency transactions.
Paul Favila, Citi Philippines CEO and banking head, emphasized Citi’s long-term role: “We are grateful for the opportunity to continue being the sole settlement bank for PDDTS and to work with BAP, PCHC, and BSP to impact the industry and the Filipino people.”
Emmanuel Barcena, PCHC president and CEO, added: “We deliver seamless, efficient, and resilient operations that safeguard and power our financial system.”
The big picture
The renewed deal strengthens the country’s alignment with global payment systems, ensuring smoother domestic U.S. dollar settlements and greater operational resilience.
It also underscores BSP’s role as regulator and operator of PhilPass — ensuring compliance, oversight, and continued innovation in the country’s financial market infrastructure.
The bottom line
By renewing this partnership, BAP and its partners are reinforcing trust, stability, and modernization in the Philippine financial system — pillars essential to the country’s long-term economic growth. —Ed: Corrie S. Narisma
