0I.

The History 
IN THE YEAR 1900
Act No. 52 was passed by the First Philippine Commission placing all banks under the Bureau of Treasury. The
Insular Treasurer was authorized to supervise and examine banks and banking activities. 
IN 1933
Particular group of Filipinos were trying to conceptualize a central bank for the Philippines.
Resulted from a careful understanding of the economic provisions of HARE HAWES CUTTING BILL.
IN FEBRUARY OF 1929
The Bureau of Banking under the Department of Finance took over the task of banking supervision.
IN 1939
A bill establishing a central bank was drafted by Secretary of Finance Manuel Roxas and approved by the
Philippine Legislature. However, the bill was returned by the US government, without action, to the
Commonwealth Government. 
February 1948
President Manuel Roxas submitted to Congress a bill “Establishing the Central Bank of the Philippines,
defining its powers in the administration of the monetary and banking system, amending pertinent provisions of
the Administrative Code with respect to the currency and the Bureau of Banking, and for other purposes.
15 June 1948
The bill was signed into law as Republic Act No. 265 (The Central Bank Act) by President Elpidio Quirino.
3 January 1949
The Central Bank of the Philippines (CBP) was inaugurated and formally opened with Hon. Miguel Cuaderno,
Sr. as the first governor. 
3 July 1993
The Bangko Sentral ng Pilipinas (BSP) was established to replace the CBP as the country’s central monetary
authority.

BANGKO SENTRAL NG PILIPINAS

The Bangko Sentral ng Pilipinas (BSP) is the central bank of the Republic of the Philippines. It was established
on 3 July 1993 pursuant to the provisions of the 1987 Philippine Constitution and the New Central Bank Act of
1993.
The BSP took over from the Central Bank of Philippines, which was established on 3 January 1949, as the
country’s central monetary authority. The BSP enjoys fiscal and administrative autonomy from the National
Government in the pursuit of its mandated responsibilities. 
BANGKO SENTRAL NG PILIPINAS 
VISION
The BSP aims to be a world-class monetary authority and a catalyst for a globally competitive economy and
financial system that delivers a high quality of life for all Filipinos. 
MISSION
BSP is committed to promote and maintain price stability and provide proactive leadership in bringing about a
strong financial system conducive to a balanced and sustainable growth of the economy. Towards this end, it
shall conduct sound monetary policy and effective supervision over financial institutions under its jurisdiction.
Functions and Operations
OBJECTIVES
The BSP’s primary objective is to maintain price stability conducive to a balanced and sustainable economic
growth. The BSP also aims to promote and preserve monetary stability and the convertibility of the national
currency
RESPONSIBILITIES
The BSP provides policy directions in the areas of money, banking and credit. It supervises operations of banks
and exercises regulatory powers over non-bank financial institutions with quasi-banking functions.
 Under the New Central Bank Act, the BSP performs the following functions, all of which relate to its status as
the Republic’s central monetary authority: 
Liquidity Management
formulates and implements monetary policy aimed at influencing money supply consistent with its primary
objective to maintain price stability.  
Currency issue
has the exclusive power to issue the national currency. All notes and coins issued by the BSP are fully
guaranteed by the Government and are considered legal tender for all private and public debts.
 
Lender of last resort
The BSP extends discounts, loans and advances to banking institutions for liquidity purposes.  
Financial Supervision
The BSP supervises banks and exercises regulatory powers over non-bank institutions performing quasi-
banking functions 
Management of foreign currency reserves
The BSP seeks to maintain sufficient international reserves to meet any foreseeable net demands for foreign
currencies in order to preserve the international stability and convertibility of the Philippine peso. 
Determination of exchange rate policy
determines the exchange rate policy of the Philippines. Currently, the BSP adheres to a market-oriented foreign
exchange rate policy such that the role of Bangko Sentral is principally to ensure orderly conditions in the
market. 
Other activities, the BSP functions as the banker, financial advisor and official depository of the Government,
its political subdivisions and instrumentalities and government-owned and -controlled corporations.
 
GOVERNANCE OF THE BANK
THE MONETARY BOARD
exercises the powers and functions of the BSP, such as the conduct of monetary policy and supervision of the
financial system. Its chairman is the BSP Governor, with five full-time members from the private sector and one
member from the Cabinet.
THE GOVERNOR
Is the chief executive officer of the BSP and is required to direct and supervise the operations and internal
administration of the BSP.
 
A deputy governor heads each of the BSP's operating sector as follows:

 Monetary Stability Sector takes charge of the formulation and implementation of the BSP’s
monetary policy, including serving the banking needs of all banks through accepting deposits,
servicing withdrawals and extending credit through the rediscounting facility.
 Supervision and Examination Sector enforces and monitors compliance to banking laws to promote
a sound and healthy banking system.
 Resource Management Sector serves the human, financial and physical resource needs of the BSP

 
BSP’S IN THE PHILIPPINES
BSP MAIN COMPLEX
The BSP Main Complex in Manila houses the offices of the Governor, the Monetary Board and the different
operating departments/ offices. The Complex has several buildings, namely: 5-Storey building, Multi-storey
building, the EDPC building and the BSP Money Museum, which showcases the Bank's collection of
currencies.
BSP SECURITY PLANT COMPLEX
The Security Plant Complex which is located in Quezon City houses a banknote printing plant, a securities
printing plant, a mint and a gold refinery. The banknote printing plant and the mint take care of producing
currency notes and coins, respectively.
BSP’S IN THE PHILIPPINES
The BSP has three regional offices performing cash operations, cash administration, loans and rediscounting,
bank supervision and gold buying operations. These regional offices are located in La Union, Cebu City and
Davao City and 19 branches all over the Philippines.