From left to right: Mr. Elfren Antonio S. Sarte, Former Chairman, BAP Operations Committee; Mr. Paul Raymond A. Favila, CEO & Banking Head, Citi Philippines; Mr. TG Limcaoco, President, Bankers Association of the Philippines; Mr. Emmanuel E. Barcena, President & CEO, Philippine Clearing House Corporation; Ms. Apple Junio, Co-Chairperson, Subcom on Payments Clearing and Settlement; Mr. Benjamin P. Castillo, Managing Director, Bankers Association of the Philippines
Makati City, Philippines – The Bankers Association of the Philippines (BAP) has renewed its strategic engagement with Citi Philippines and the Philippine Clearing House Corporation (PCHC) for the continued operation and enhancement of the Philippine Domestic Dollar Transfer System (PDDTS) and the Payment-versus-Payment (PvP) System. The agreement, formally signed during a ceremony on August 28, 2025, extends their collaboration until August 17, 2030.
As the owner and governing body of both systems, BAP continues to drive efforts to strengthen the country’s financial market infrastructure, with Citi Philippines serving as Settlement Bank and PCHC acting as Clearing Operator and Operator of a Designated Payment System (ODPS).
The PDDTS and PvP systems, established by the BAP, have long supported financial stability, liquidity management, and efficient settlement across the banking sector. Launched in 1995, PDDTS enables real-time domestic U.S. dollar transfers among participating Philippine banks, while PvP, introduced in 2003, reduces settlement risk in cross-currency transactions. In 2022, both systems were recognized and designated by the Bangko Sentral ng Pilipinas (BSP) as systematically important payment systems (SIPS).
Under the renewed partnership, BAP, Citi Philippines, and PCHC commit to key system enhancements, including improved IT infrastructure and service levels targeting 99.5% system uptime, faster incident response, proactive maintenance notifications, and upgraded business continuity protocols to ensure stronger disaster recovery and operational resilience. Additionally, PDDTS will transition its account interest calculations from London Interbank Offered Rate (LIBOR) to the Effective Federal Funds Rate (EFFR).
“Citi Philippines is grateful for the opportunity to continue being the country’s sole settlement bank for PDDTS and to continue working with the PCHC, BAP, and the BSP in making a mark—not just on our industry, but in the lives of our clients and the Filipino people,” said Citi Philippines CEO and Banking Head Paul Favila.
PCHC President and CEO Emmanuel Barcena stated, “PCHC is proud to strengthen its partnership with the BAP and Citi Philippines in advancing the PDDTS and PvP system. As the Clearing Operator and Operator of a Designated Payment System, we deliver seamless, efficient, and resilient operations that safeguard and power our financial system.”
With this venture, the banking industry is poised to benefit from stronger alignment with global payment systems, greater efficiency in domestic USD settlements, and enhanced support for financial market stability and industry innovation. These developments also reinforce operational stability and regulatory compliance, guided by the BSP in its critical roles as Operator of PhilPass, Settlement Bank for the PHP leg of PvP transactions, and primary regulator of all designated payments in the country.
“Today marks a very special occasion as we gather to witness the signing of the renewed agreement for the Philippine Domestic Dollar Transfer System, or PDDTS, and the Payment- versus-Payment facility, or PvP. This milestone gives us the opportunity to reflect on how far we have come and to recognize the collective efforts that brought us here. The success of the PDDTS/PvP has always been a story of collaboration — among our committees, our partners, and the broader financial community. Together, we will continue to strengthen our systems, adapt to change, and serve the needs of our economy,” said TG Limcaoco, President of the Bankers Association of the Philippines.
