Bangko

sentral ng
pilipinas
HISTORY

BSP VISION AND

MISSION

OVERVIEW OF
FUNCTIONS AND
OPERATIONS

ORGANIZATION
OF THE BANK
 Chronology of Events: Central Banking in
the Philippines
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.
February 1929 The Bureau of Banking under the Department of Finance took
over the task of banking supervision.

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.

1946 A joint Philippine-American Finance Commission was created

to study the Philippine currency and banking system. The
Commission recommended the reform of the monetary
system, the formation of a central bank and the regulation of
money and credit.
The charter of the Central Bank of Guatemala was chosen as
the model of the proposed central bank charter.
Chronology of events..

August 1947 A Central Bank Council was formed to review the Commissions
report and prepare the necessary legislation for implementation.

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.
The broad policy objectives contained in RA No. 265 guided the
CBP in the implementation of its duties and responsibilities,
particularly in relation to the promotion of economic development
in addition to the maintenance of internal and external monetary
stability.
 Chronology of events..

November 1972 RA No. 265 was amended by Presidential Decree No. 72 to

make the CBP more responsive to changing economic
conditions.
PD No. 72 emphasized the maintenance of domestic and
international monetary stability as the primary objective of the
CBP. Moreover, the CBPs authority was expanded to include
not only the supervision of the banking system but also the
regulation of the entire financial system.

January 1981 Further amendments were made with the issuance of PD No.
1771 to improve and strengthen the financial system, among
which was the increase in the capitalization of the CBP from
P10 million to P10 billion.

1986 Executive Order No. 16 amended the Monetary Board

membership to promote greater harmony and coordination of
government monetary and fiscal policies.

3 July 1993 The Bangko Sentral ng Pilipinas (BSP) was established to

replace the CBP as the countrys central monetary authority.
The BSP Vision and Mission

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.
Overview of Functions and Operations

Objectives
The BSPs 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 and functions

Liquidity Management. The BSP formulates and implements

monetary policy aimed at influencing money supply consistent with its
primary objective to maintain price stability.

Currency issue. The BSP 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.
 Overview functions.

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. The BSP 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.
 The BSP's Organizational Structure The current members of the
as of June 2009 Monetary Board are:
Amando M. Tetangco, Jr.,
Chairman
Romulo L. Neri
Vicente B. Valdepeas, Jr.
Raul A. Boncan
The Monetary Stability Juanita D. Amatong
Sector, which takes charge The Security
Alfredo Plant
C. Antonio
of the formulation and Complex (SPC) of the
Nelly F. Villafuerte
implementation of the BSPs Bangko Sentral ng Pilipinas
monetary policy, including is responsible for the
2005-present- Amando
production M.
of the Philippine
serving the banking needs
Tetangco, Jr. Its establishment
currency.
of all banks through
accepting deposits, enables the Bangko
servicing withdrawals and Sentral ng Pilipinas (BSP)
extending credit through the to have control of the
The Resource Management
rediscounting facility supply, security and quality
Sector, which serves the human,
of the Philippine currency.
financial and physical resource
needs of the BSP.

The Supervision and Examination Sector,

which enforces and monitors compliance to
banking laws to promote a sound and healthy
banking system
The Executive Management Services
monetary board
1. Office of the Secretary, Monetary Board
Provides administrative and secretarial services to the Monetary Board.

2. Office of the General Counsel and Legal Services

Prepares opinions and rulings for the MB, the Governor, and the Deputy
Governors on matters relating to policies, functions, operations and
regulations of the Bank; and
Prosecutes or defends cases involving the BSP, the MB, and Management
in judicial and administrative proceedings.

3. Office of Special Investigation

Evaluates bank irregularities and anomalies noted in the
examination reports submitted by examining departments.

4. Internal Audit Office

Monitors the internal control system of the BSP;
Reviews and appraises the effectiveness of operating control systems;
and
Monitors utilization of security materials, disposal of production wastes,
and receipt of gold and other precious metals at the SPC.
governor
5. Treasury Department
Manages the BSPs international reserves at a level and a mix that allows the
BSP to meet any demands for foreign currency;
Undertakes open market operations and transacts with accredited government
securities dealers and the rest of the members of the banking system in pursuit
of strategies for the development of an active secondary market for
government securities; and
Participates in the Philippine Dealing System to ensure the competitiveness of
the Philippine peso and its convertibility into other acceptable foreign
currencies.

6. Systems and Methods Office

Ensures a well organized and integrated bankwide effort to develop and
maintain efficient systems and procedures; and
Provides recommendations along the areas of manualization, business process
reengineering, and systems support.

7. Corporate Planning Office

Provides technical support to Management in the formulation and application
of strategic plans and practices and in the development of guidelines/policies in
preparation for departmental work plans.
governor

8. BSP Staff in the Anti-Money Laundering Council Secretariat

Assists the Anti-Money Laundering Council in implementing the provision of the
Anti-Money Laundering Law, otherwise known as Republic Act 9160;
Receives transaction reports from covered institutions, investigates suspicious
transactions, and causes the filing of complaints with the Department of Justice
or the Ombudsman for the prosecution of money laundering offenses; and

Under the Anti-Money Laundering Law, all members of the Secretariat are considered
regular employees of the BSP.

A manpower pool for the AMLC Secretariat was created in the Office of the Governor
(OG) to address the problem of recruiting qualified personnel with a minimum of five-
year residency either in the BSP, Securities and Exchange Commission, or Insurance
Commission (as required by RA 9160).

All positions in the Pool shall be abolished upon the appointment of their incumbents
to corresponding positions at the AMLC Secretariat.

9. Risk Management Office

Aggregates the various risk exposures of the Bank;
Identifies appropriate risk control measures; and
Ensures that appropriate risk management practices are being implemented at
all times.
governor

10. Corporate Affairs Office

Implements the public relations and advertising programs of the BSP to
promote and enhance its corporate image.
The Security Plant Complex
Security plant complex

1. Research and Development Group

Conducts research and development studies on various aspects of the
operations of the Security Plant Complex (SPC), especially on banknote
printing and coin minting operations.

2. SPC Financial Services and Data Management Group

Prepares financial statements and consolidates cash flows, income
statements and balance sheets for SPC;
Records financial receipts and disbursements and processes bills for
payment; and
Coordinates data collection activities and provides technical support on
software applications.

3. Banknotes Securities and Printing Department

Manages and performs the printing of banknotes and other security
documents (i.e. passports and land titles).
4. Mint and Refinery Operations Department
Manages and performs the minting of coins, commemorative medals,
and refines gold purchased from local panners/miners.

5. Department of General Services

Manages the procurement of supplies, equipment, and services for the
SPC and the general maintenance and upkeep of its facilities.