Overview of the BSP

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 countrys central monetary authority. The BSP enjoys fiscal
and administrative autonomy from the National Government in the pursuit of its mandated
responsibilities.
The BSP Seal

The new BSP logo is a perfect round shape in blue that features three gold stars and a
stylized Philippine eagle rendered in white strokes. These main elements are framed on the
left side with the text inscription Bangko Sentral ng Pilipinas underscored by a gold line
drawn in half circle. The right side remains open, signifying freedom, openness, and
readiness of the BSP, as represented by the Philippine eagle, to soar and fly toward its goal.
Putting all these elements together is a solid blue background to signify stability.
Principal Elements:
1. The Philippine Eagle, our national bird, is the worlds largest eagle and is a symbol of
strength, clear vision and freedom, the qualities we aspire for as a central bank.
2. The three stars represent the three pillars of central banking: price stability, stable
banking system, and a safe and reliable payments system. It may also be interpreted as a
geographical representation of BSPs equal concern for the impact of its policies and
programs on all Filipinos, whether they are in Luzon, Visayas or Mindanao.
Colors
1. The blue background signifies stability.
2. The stars are rendered in gold to symbolize wisdom, wealth, idealism, and high quality.
3. The white color of the eagle and the text for BSP represents purity, neutrality, and mental
clarity.
Font or Type Face
Non-serif, bold for BANGKO SENTRAL NG PILIPINAS to suggest solidity, strength, and
stability. The use of non-serif fonts characterized by clean lines portrays the no-nonsense
professional manner of doing business at the BSP.
Shape
Round shape to symbolize the continuing and unending quest to become an excellent
monetary authority committed to improve the quality of life of Filipinos. This round shape is
also evocative of our coins, the basic units of our currency.

Creating a Central Bank for the Philippines

A group of Filipinos had conceptualized a central bank for the Philippines as early as 1933. It came
up with the rudiments of a bill for the establishment of a central bank for the country after a
careful study of the economic provisions of the Hare-Hawes Cutting bill, the Philippine

independence bill approved by the US Congress.

During the Commonwealth period (1935-1941), the discussion about a Philippine central bank that
would promote price stability and economic growth continued. The countrys monetary system
then was administered by the Department of Finance and the National Treasury. The Philippines
was on the exchange standard using the US dollarwhich was backed by 100 percent gold reserve
as the standard currency.
In 1939, as required by the Tydings-McDuffie Act, the Philippine legislature passed a law
establishing a central bank. As it was a monetary law, it required the approval of the United States
president. However, President Franklin D. Roosevelt disapproved it due to strong opposition from
vested interests. A second law was passed in 1944 during the Japanese occupation, but the arrival
of the American liberalization forces aborted its implementation.
Shortly after President Manuel Roxas assumed office in 1946, he instructed then Finance Secretary
Miguel Cuaderno, Sr. to draw up a charter for a central bank. The establishment of a monetary
authority became imperative a year later as a result of the findings of the Joint PhilippineAmerican Finance Commission chaired by Mr. Cuaderno. The Commission, which studied Philippine
financial, monetary and fiscal problems in 1947, recommended a shift from the dollar exchange
standard to a managed currency system. A central bank was necessary to implement the proposed
shift to the new system.
Immediately, the Central Bank Council, which was created by President Manuel Roxas to prepare
the charter of a proposed monetary authority, produced a draft. It was submitted to Congress in
February1948. By June of the same year, the newly-proclaimed President Elpidio Quirino, who
succeeded President Roxas, affixed his signature on Republic Act No. 265, the Central Bank Act of
1948. The establishment of the Central Bank of the Philippines was a definite step toward national
sovereignty. Over the years, changes were introduced to make the charter more responsive to the
needs of the economy. On 29 November 1972, Presidential Decree No. 72 adopted the
recommendations of the Joint IMF-CB Banking Survey Commission which made a study of the
Philippine banking system. The Commission proposed a program designed to ensure the systems
soundness and healthy growth. Its most important recommendations were related to the
objectives of the Central Bank, its policy-making structures, scope of its authority and procedures
for dealing with problem financial institutions.
Subsequent changes sought to enhance the capability of the Central Bank, in the light of a
developing economy, to enforce banking laws and regulations and to respond to emerging central
banking issues. Thus, in the 1973 Constitution, the National Assembly was mandated to establish
an independent central monetary authority. Later, PD 1801 designated the Central Bank of the
Philippines as the central monetary authority (CMA). Years later, the 1987 Constitution adopted
the provisions on the CMA from the 1973 Constitution that were aimed essentially at establishing
an independent monetary authority through increased capitalization and greater private sector
representation in the Monetary Board.
The administration that followed the transition government of President Corazon C. Aquino saw the
turning of another chapter in Philippine central banking. In accordance with a provision in the
1987 Constitution, President Fidel V. Ramos signed into law Republic Act No. 7653, the New
Central Bank Act, on 14 June 1993. The law provides for the establishment of an independent
monetary authority to be known as the Bangko Sentral ng Pilipinas, with the maintenance of price
stability explicitly stated as its primary objective. This objective was only implied in the old Central
Bank charter. The law also gives the Bangko Sentral fiscal and administrative autonomy which the
old Central Bank did not have. On 3 July 1993, the New Central Bank Act took effect.

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.

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
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 Republics central monetary authority.

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.

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

as of December 2014

Executive Management Services the functional grouping of all units directly reporting
to the Monetary Board or to the Governor

Functional Sectors

Monetary Stability Sector - mainly responsible for the operations/activities

related to monetary policy formulation and implementation

Supervision and Examination Sector mainly responsible for the regulation of

banks and other BSP-supervised financial institutions

Resource Management Sector mainly responsible for the management of

human, financial, and physical resources of the Bank

Security Plant Complex responsible for the production of Philippine currency, security
documents, and commemorative medals and medallions

Offices Under the Monetary Board

1. Office of the Secretary, Monetary Board

Provides secretarial and administrative support to the Monetary Board

2. Office of the General Counsel and Legal Services

Renders legal advisory services to the Monetary Board and other BSP units on matters
relating to policies, functions, operations, and regulations of the BSP

Prosecutes and defends cases involving the BSP, the Monetary Board, and Management in
judicial and administrative proceedings

3. Office of Special Investigation

Investigates, mediates, and when necessary, prosecutes bank irregularities and anomalies
noted in the examination reports submitted by the Supervision and Examination Sector

4. Internal Audit Office

Reviews and appraises the effectiveness of operating control systems of the BSP and
makes recommendations to address findings

Monitors utilization of security materials and other resources of the BSP

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 BSPs
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

The BSP Monetary Board

Chairman

Amando M. Tetangco, Jr.

Members

Cesar V. Purisima
Alfredo C. Antonio
Juan D. De Zuiga, Jr.
Valentin A. Araneta
Felipe M. Medalla
Armando L. Suratos

The Governor
Pursuant to Republic Act No. 7653 (The New Central Bank Act), the Governor shall be the chief
executive officer of the Bangko Sentral. His powers and duties shall be to:
1.

Prepare the agenda for the meetings of the Monetary Board and to submit for the
consideration of the Board the policies and measures that he believes to be necessary to
carry out the purposes and provisions of said Act;

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. The
Governor may delegate certain of his administrative responsibilities to other officers or
may assign specific tasks or responsibilities to any full-time member of the Monetary
Board without additional remuneration or allowance whenever he may deem fit or subject
to such rules and regulations as the Monetary Board may prescribe;

4.

Appoint and fix the remunerations and other emoluments of personnel below the rank of a
department head in accordance with the position and compensation plans approved by the
Monetary Board, as well as to impose disciplinary measures upon personnel of the Bangko
Sentral, subject to the provisions of Section 15(c) of said Act: Provided, That removal of
personnel shall be with the approval of the Monetary Board;

5.

Render opinions, decisions, or rulings, which shall be final and executory until reversed or
modified by the Monetary Board, on matters regarding application or enforcement of laws
pertaining to institutions supervised by the Bangko Sentral and laws pertaining to quasibanks, as well as regulations, policies or instructions issued by the Monetary Board, and
the implementation thereof; and

6.

Exercise such other powers as may be vested in him by the Monetary Board.

The Governor of the Bangko Sentral shall be the principal representative of the Monetary Board
and of the Bangko Sentral and, in such capacity and in accordance with the instructions of the
Monetary Board, he shall be empowered to:
1.

Represent the Monetary Board and the Bangko Sentral in all dealings with other offices,
agencies and instrumentalities of the Government, and all other persons or entities, public
or private, whether domestic, foreign or international;

2.

Sign contracts entered into by the Bangko Sentral, notes and securities issued by the
Bangko Sentral, all reports, balance sheets, profit and loss statements, correspondence,
and other documents of the Bangko Sentral;

3.

Represent the Bangko Sentral, either personally or through counsel, including private
counsel, as may be authorized by the Monetary Board, in any legal proceedings, action or
specialized legal studies; and

4.

Delegate his power to represent the Bangko Sentral, to other officers upon his own
responsibility: Provided, however, That in order to preserve the integrity and the prestige
of his office, the Governor of the Bangko Sentral may choose not to participate in
preliminary discussions with any multilateral banking or financial institution on any
negotiations for the Government within or outside the Philippines. During the
negotiations, he may instead be represented by a permanent negotiator.

Profile of the Governor

Amando M. Tetangco, Jr. assumed office as Governor of the Bangko Sentral ng Pilipinas in July
2005. He is a career central banker, occupying different positions in the organization in a span of
over three decades. Immediately prior to his appointment as BSP Governor, he was Deputy
Governor in-charge of the Banking Services Sector, Economic Research and Treasury.
As BSP Governor, he is also the Chairman of the Monetary Board, Anti-Money Laundering Council
(AMLC) and Philippine International Convention Center (PICC); Vice-Chairman of the Agriculture
Credit Policy Council (ACPC); Member of the Capital Market Development Council (CMDC), Export
Development Council (EDC), PhilExport Board of Trustees (PHILEXPORT), Philippine Export-Import

Credit Agency (PHILEXIM); and Director of Philippine Deposit Insurance Corporation (PDIC),
National Development Council (NDC) and National Home Mortgage Finance Corporation (NHMFC).
He also represents the country in various international and regional organizations, including the
Executive Meeting of East Asia and Pacific (EMEAP) Central Banks; ASEAN and ASEAN+3; South
East Asia Central Banks (SEACEN); South East Asia, New Zealand and Australia (SEANZA); Center
for Latin American Monetary Studies (CEMLA); and Asia-Pacific Economic Cooperation (APEC). He
is the Governor for the Philippines in the International Monetary Fund (IMF) and the Alternate
Governor in the World Bank (WB) and in the Asian Development Bank (ADB).
Before joining the Central Bank of the Philippines in 1974, Mr. Tetangco was connected with the
Management Services Division of accounting firm SGV & Co.
Mr. Tetangco took up AB Economics at the Ateneo de Manila University where he graduated cum
laude. He took up graduate courses in business administration in the same institution. As a central
bank scholar, Mr. Tetangco took up his MA in Public Policy and Administration (concentration in
Development Economics) at the University of Wisconsin in Madison, USA. Earlier, he finished his
elementary and high school education at Don Bosco Academy in Pampanga.
Mr. Tetangco is married to Elvira Ma. Plana. They have three children: a son and two daughters.
Central Bank Governors

Name

Tenure

Miguel Cuaderno, Sr.

3 January 1949 - 31 December 1960

Andres V. Castillo

6 January 1961 - 31 December 1967

Alfonso Calalang

1 January 1968 - 9 January 1970

Gregorio S. Licaros

10 January 1970 - 15 January 1981

Jaime C. Laya

16 January 1981 - 18 January 1984

Jose B. Fernandez, Jr.

19 January 1984 - 19 February 1990

Jose L. Cuisa, Jr.

20 February 1990 - 2 Juy 1993

Bangko Sentral Governors

Name

Tenure

Gabriel C. Singson

6 July 1993 - 5 July 1999

Rafael B. Buenaventura

6 July 1999 - 3 July 2005

Amando M. Tetangco, Jr.

4 July 2005-Present