Central

Monetary
Authority
Group 1:
Balcita, Jay Aura
Abellera, Kisha Mae
Gocela, Mischelle
Atayan, Reniel
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 Central Bank of
the Philippines and
its Objectives
 Development of Central
Banking in the Philippines.
 Primary objectives of the
Bangko Sentral.
 Its role in the economic
growth.
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 Overview

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.

A central bank is a public institution that manages the currency of a country or

group of countries and controls the money supply.

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Additional Primary Objectives
of the Bangko Sentral
Inflation — it pursues a low and stable rate of inflation.

Employment — it aims for a high, stable growth, and high employment rate in the
economy.
Market Stability — it promotes a stable financial market and financial institutions.

Interest Rate — central bank’s objective is to maintain interest rates.

Exchange Rate — the bank also tries to maintain stable exchange rates.
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Role in the Economic Growth
Central banks play a crucial role in ensuring economic and financial stability.
They conduct monetary policy to achieve low and stable inflation. In the
wake of the global financial crisis, central banks have expanded their
toolkits to deal with risks to financial stability and to manage volatile
exchange rates.

It is well acknowledged in economics literature that deposit taking banking

institutions play a major role in promoting economic development
through channeling of funds from those with excess to those in need for
investment purposes.
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 The Monetary
Board members,
powers and
functions
 The Composition of the
monetary board.
 Qualifications and
Disqualifications of the
members.
 The powers and duties of the
Central Bank Governor. 6
The Monetary Board exercises the BSP Organization Chart
powers and functions of the BSP,
such as the conduct of monetary
policy and supervision of the
financial system.

The Board is composed of seven

members including the Governor and
has the Senior Deputy Governors of
the Bank.

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 The BSP Monetary Boar​d
Felipe
M.
Medalla

Governor

Benjamin E. Antonio S.
Diokno Peter B. Abacan,
Secretary of the
Favila Jr.
Department of Finance Board Member
Board Member

V. Bruce J. Anita Eli M.

Tolentino Linda R. Remolona
Aquino
Board Member Board Member
Board Member 8
 The BSP Deputy Governors

Francisco Chuchi G. Eduardo

G. Dakila, Fonacier G. Bobier
Jr.
Financial Corporate
Monetary and Supervision Services
Economics Sector Sector
Sector

Mamerto Bernadette
E. Romulo-
Tangonan Puyat
Payments and Regional
Currency Operations and
Management Advocacy Sector
Sector 9
 The Qualifications and
Disqualifications of the
members of the Monetary
Board
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Qualifications
The members of the Monetary Board must be:
1. Natural-born citizens of the Philippines.
2. At least thirty-five (35) years of age
3. Exception of the Governor who should at least be forty (40) years of age
4. Of good moral character
5. Of unquestionable integrity
6. Of known probity and patriotism
7. With recognized competence in social and economic disciplines

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Disqualifications
A member of the Monetary Board is disqualified from being a:
1. Director
2. Officer
3. Employee
4. Consultant
5. Lawyer
6. Agent or stockholder of any bank, quasi-bank or any other institution
which is subject to supervision or examination by the Bangko Sentral.

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The Powers and Duties of the
Central Bank Governor

The Governor, who serves as the

Chairman of the Board concurrently, is
appointed by the President following
deliberation by the State council.

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His powers and duties shall be to:
1. Prepare the agenda for the meetings of the Monetary Board.
2. Execute and administer the policies and measures approved by the
Monetary Board.
3. Direct and supervise the operations and internal administration of the
Bangko Sentral.
4. Appoint and fix the remunerations and other emoluments of personnel
below the rank of a department head.
5. Render opinions, decisions, or rulings.
6. Exercise such other powers as may be vested in him by the Monetary
Board.
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 Domestic and
International
Stability
 The Monetary Stability.
 Effect of monetary stability in
both domestic and
international.

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Monetary Stability

It is both a fundamental economic goal and an essential monetary policy objective.

It refers to the maintenance of the internal value of money as well as of the external
value of the currency.

It means a lengthy period of stable prices and market confidence in the external
value of a currency. It also called as “Price Stability”.

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Domestic Monetary Stability

It is an essential regulatory objective based on the monetary sovereign attributes of

the states.

The Monetary Board shall regularly assess price developments and outlook and,
based on its analysis and evaluation of inflationary pressures, use its policy
instruments to attain and maintain price stability.

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Action when Abnormal Movements occur in the Price Level
The Monetary Board shall:
1. Take such remedial measures as are appropriate and within the powers
granted to the Monetary Board and the Bangko Sentral.
2. Submit a detailed report to the President and the Congress with a
description and analysis of:
a. the causes of the rise or fall of prices
b. the extent to which the changes in prices have been reflected and the nature
and significance of any such changes.
c. the measures which the Monetary Board has taken which it recommends to
be adopted (fiscal measures).

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International Monetary Stability

The Bangko Sentral shall exercise its powers to preserve the international value
of the peso and to maintain its convertibility into other freely convertible
currencies primarily for, although not necessarily limited to, current payments for
foreign trade and invisibles.

International Reserves

The Bangko Sentral shall maintain international reserves adequate to meet any
foreseeable net demands on the Bangko Sentral for foreign currencies.
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Action when the International Stability of the Peso Is Threatened
The Monetary Board shall:
1. Take such remedial measures as are appropriate and within the powers
granted to the Monetary Board and the Bangko Sentral.
2. Submit a detailed report to the President and the Congress with a
description and analysis of:
a. the nature and causes of the existing or imminent decline
b. the remedial measures already taken or to be taken by the Monetary Board.
c. the monetary, fiscal or administrative measures further proposed.
d. the character and extent of the cooperation required from other government
agencies

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 Central Bank
Organization

 Central Bank Organization.

 Purpose of Reorganization in
the Central Bank.

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 Central Bank Organization
Monetary and Financial Corporate Payments and
Economics Supervision Services Sector Currency
Sector Sector Management
It is mainly Sector
responsible for the It is mainly It is mainly responsible It is mainly responsible
operations/activitie responsible for the for the effective for maintaining the
s related to management of BSP’s safety and integrity of
regulation of banks
monetary policy human, financial, and the Philippine
and other BSP-
formulation, physical resources to currency. It handles
implementation,
supervised support the BSP’s core the printing of bills
and assessment. financial functions. and minting of coins.
institutions.

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 Regional Operations and Advocacy Sector
It is mainly responsible for overseeing the operations of the Financial Inclusion Office,
Economic and Financial Learning Office, Consumer Protection and Market Conduct Office.

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Purpose of Reorganization

To enhance the BSP’s “capability to fulfill its mandate in an ever-shifting economic

landscape.”

The changes are expected to improve risk management and enhance internal audit
systems.

Maintaining price and financial stability are the BSP’s mandates, alongside a “safe
and efficient” payments system that would support overall economic growth.

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Thank you!

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