Bangko Sentral ng Pilipinas
|Reestablished:||July 3, 1993|
|Governor:||Benjamin E. Diokno|
The Bangko Sentral ng Pilipinas (BSP) is the Philippines’ central monetary authority. It is considered as the central bank of the country based on the provisions of the 1987 Philippine Constitution and the New Central Bank Act of 1993. On July 3, 1993, the BSP was established and it replaced the Central Bank of the Philippines (CBP). The BSP is vested with fiscal and administrative autonomy from the National Government due to its mandated responsibilities.
During the American occupation, in 1933, a group of Filipinos thought of constructing a central bank for the Philippines. The provisions of the Hare-Hawes Cutting bill contained a basic principle of having a central bank for the country.
From 1935 to 1941, during the Commonwealth period, there was a discussion that a Philippine central bank will promote price stability and continue to grow the economy, though at the time, the Department of Finance and National Treasury administered the country’s monetary system.
In 1939, the Tydings-McDuffie Act required the Philippine legislature to pass a law to establish a central bank. The president of United States at the time, Franklin D. Roosevelt, disapproved the monetary law because of strong opposition from those with vested interests.
In 1944, during the Japanese occupation, a second law about the establishment of a central bank for the Philippines was passed. This law was not implemented because of the arrival of American Liberalization forces, effectively ending Japanese rule.
Discussions on the formation of a central bank for the Philippines resumed post-World War II. In 1946, then Finance Secretary Miguel Cuaderno, Sr. was tasked by President Manuel Roxas to draft a charter for a central bank. A joint Philippine-American Finance Commission was created to study the Philippine currency and banking system.
The commission, chaired by Cuaderno, recommended a reform of the monetary system and the regulation of money and credit. A central bank was needed in order to facilitate these changes.
Roxas then created the Central Bank Council in August 1947 to prepare the necessary legislation for the proposed monetary authority. The document was submitted to Congress in February 1948.
The Central Bank of the Philippines was inaugurated and formally opened on January 3, 1949. Hon. Miguel Cuaderno, Sr. was named as the bank's first governor.
On July 3, 1993, Republic Act No. 7653, also known as The New Central Bank Act, was passed, establishing the Bangko Sentral ng Pilipinas. BSP replaced CBP as the country's central monetary authority.
The main objective of the BSP is to promote and maintain price stability, a strong financial system, and a safe and efficient payments and settlements system.
It conducts monetary policy and supervises the financial system of the Philippines, and promotes fiscal stability to maintain a low and stable inflation rate and allow sustainable economic growth.
Mandate, Functions and Responsibilities
The primary responsibility of BSP is to provide policy directions in the areas concerning money, banking, and credit. It monitors the operations of banks. It exercises regulatory powers to non-bank financial institutions with quasi-banking functions.
- Liquidity Management: Create and implement monetary policy to maintain price stability.
- Currency Issuance: Issue the national currency including all notes and coins. This exclusive power is guaranteed by the government and so is considered legal tender for all private and public debts.
- Lender of last resort: Give discounts, loans and advances to banking institutions for liquidity purposes.
- Financial Supervision: Monitor bank and non-bank institutions performing banking functions
- Management of foreign currency and reserves: Maintain enough international reserves and meet foreign demands for the preservation of international stability and convertibility of the Philippine peso.
- Determination of exchange rate policy: Maintain a market-oriented foreign exchange rate policy.
- Banker, financial advisor, and official depository of the Government
Organization and Governance
The BSP is governed by a Monetary Board, which exercises the powers and functions of the bank. The board is chaired by the Governor, with five full-time members from the private sector, and one member from the Presidential Cabinet.
The governor is considered the chief executive officer of BSP. He directs and supervises the operations and internal administration of the BSP, through its operating sectors: the Monetary and Economics Sector, Financial Supervision Sector, Corporate Services Sector, and Payments and Currency Management Sector.
Present BSP Monetary Board
- Carlos G. Dominguez III
- Felipe M. Medalla
- Peter B. Favila
- Antonio S. Abacan, Jr.
- V. Bruce J. Tolentino
- Anita Linda R. Aquino
Governors of the Central Bank of the Philippines
- Miguel Cuaderno, Sr. (1949-1960)
- Andres V. Castillo (1961-1967)
- Alfonso Calalang (1968-1970)
- Gregorio S. Licaros (1970-1981)
- Jaime C. Laya (1981-1984)
- Jose B. Fernandez, Jr. (1984-1990)
- Jose L. Cuisia, Jr. (1990-1993)
Governors of the Bangko Sentral ng Pilipinas
- Gabriel C. Singson (1993-1999)
- Rafael Buenaventura (1999-2005)
- Amando M. Tetangco, Jr. (2005-2017)
- Nestor A. Espenilla, Jr. (2017-2019)
- Benjamin E. Diokno (2019-present)
BSP is involved in several projects and activities aimed towards the following:
- Financial Inclusion
- Consumer Protection
- Financial Education
- Economic Education
- Museo ng Bangko Sentral ng Pilipinas: The Money Museum exhibits the bank’s collection of currencies, studies and preserved coins, paper notes, medals, artifacts, and monetary items found in the Philippines. It also displays paintings from the BSP art collection. It was inaugurated on January 3, 1999.
- Economic and Financial Learning Center (EFLC): The public can access information concerning economic and financial matters at the EFLC. It has an exhibit area, information help desk, information kiosks of publications and sales, multimedia/internet research, statistical information section, audio visiual room/ games nook, and library section.
- KYM Briefing: The public can avail of Know Your Money (KYM) Programs with a gallery tour of the various phases of printing banknotes and security documents. These are conducted by the Currency Management Sector.
- "History of the Bank". Bangko Sentral ng Pilipinas. (Accessed 1 March 2021).
- "Chronology of Events: Central Banking in the Philippines". Bangko Sentral ng Pilipinas. (Accessed 2 March 2021).
- "About the Bank". Bangko Sentral ng Pilipinas (Accessed 1 March 2021).
- "Charter".Bangko Sentral ng Pilipinas. (Accessed 17 November 2014).
- "The Monetary Board".Bangko Sentral ng Pilipinas. (Accessed 2 March 2021).
- "BSP Organization Structure as of 11 February 2021". Bangko Sentral ng Pilipinas. (Accessed 2 March 2021).
- "Inclusive Finance".Bangko Sentral ng Pilipinas. (Accessed 2 March 2021).