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

February 1948

15 June 1948

3 January 1949

A Central Bank Council was formed to review the Commissions

report and prepare the necessary legislation for
implementation.
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.
The bill was signed into law as Republic Act No. 265 (The
Central Bank Act) by President Elpidio Quirino.
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

1986

3 July 1993

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.
Executive Order No. 16 amended the Monetary Board
membership to promote greater harmony and coordination
of government monetary and fiscal policies.
The Bangko Sentral ng Pilipinas (BSP) was established to
replace the CBP as the countrys central monetary authority.

The BSP Vision and Mission

Vision
Vision

TheBSPaimstobeaworld-classmonetaryauthorityanda
TheBSPaimstobeaworld-classmonetaryauthorityanda
catalystforagloballycompetitiveeconomyandfinancialsystem
catalystforagloballycompetitiveeconomyandfinancialsystem
thatdeliversahighqualityoflifeforallFilipinos.
thatdeliversahighqualityoflifeforallFilipinos.
Mission
Mission

BSPiscommittedtopromoteandmaintainpricestabilityand
BSPiscommittedtopromoteandmaintainpricestabilityand
provideproactiveleadershipinbringingaboutastrongfinancial
provideproactiveleadershipinbringingaboutastrongfinancial
systemconducivetoabalancedandsustainablegrowthofthe
systemconducivetoabalancedandsustainablegrowthofthe
economy.Towardsthisend,itshallconductsoundmonetarypolicy
economy.Towardsthisend,itshallconductsoundmonetarypolicy
andeffectivesupervisionoverfinancialinstitutionsunderits
andeffectivesupervisionoverfinancialinstitutionsunderits
jurisdiction.
jurisdiction.

Overview of Functions and Operations

Objectives
TheBSPsprimaryobjectiveistomaintainpricestability
conducivetoabalancedandsustainableeconomicgrowth.
TheBSPalsoaimstopromoteandpreservemonetarystability
andtheconvertibilityofthenationalcurrency.
Responsibilities and functions
Liquidity Management.TheBSPformulatesandimplements
monetarypolicyaimedatinfluencingmoneysupplyconsistentwithits
primaryobjectivetomaintainpricestability.
Currency issue.TheBSPhastheexclusivepowertoissuethe
nationalcurrency.AllnotesandcoinsissuedbytheBSParefully
guaranteedbytheGovernmentandareconsideredlegaltenderforall
privateandpublicdebts.

Overview functions.
Lender of last resort.TheBSPextendsdiscounts,loansandadvancestobanking
institutionsforliquiditypurposes.
Financial Supervision.TheBSPsupervisesbanksandexercisesregulatorypowers
overnon-bankinstitutionsperformingquasi-bankingfunctions.
Management of foreign currency reserves.TheBSPseekstomaintainsufficient
internationalreservestomeetanyforeseeablenetdemandsforforeigncurrenciesin
ordertopreservetheinternationalstabilityandconvertibilityofthePhilippinepeso.
Determination of exchange rate policy.TheBSPdeterminestheexchangerate
policyofthePhilippines.Currently,theBSPadherestoamarket-orientedforeign
exchangeratepolicysuchthattheroleofBangkoSentralisprincipallytoensure
orderlyconditionsinthemarket.
Other activities.TheBSPfunctionsasthebanker,financialadvisorandofficial
depositoryoftheGovernment,itspoliticalsubdivisionsandinstrumentalitiesand
government-ownedand-controlledcorporations.

The BSP's Organizational Structure

as of June 2009

The Monetary Stability

Sector, which 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

The current members of the

Monetary Board are:
Amando M. Tetangco, Jr.,
Chairman
Romulo L. Neri
Vicente B. Valdepeas, Jr.
Raul A. Boncan
Juanita D. Amatong
Plant
The
AlfredoSecurity
C. Antonio
(SPC) of the
Complex
Nelly F. Villafuerte

Bangko Sentral ng Pilipinas

is responsible for the
2005-presentAmando
M.
production
of the Philippine
Tetangco,
Jr. Its establishment
currency.
enables the Bangko
Sentral ng Pilipinas (BSP)
to have control of the
The Resource Management
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
ProvidesadministrativeandsecretarialservicestotheMonetaryBoard.

2. Office of the General Counsel and Legal Services

PreparesopinionsandrulingsfortheMB,theGovernor,andtheDeputy
Governorsonmattersrelatingtopolicies,functions,operationsand
regulationsoftheBank;and
ProsecutesordefendscasesinvolvingtheBSP,theMB,andManagement
injudicialandadministrativeproceedings.

3. Office of Special Investigation

Evaluatesbankirregularitiesandanomaliesnotedinthe
examinationreportssubmittedbyexaminingdepartments.

4. Internal Audit Office

MonitorstheinternalcontrolsystemoftheBSP;
Reviewsandappraisestheeffectivenessofoperatingcontrolsystems;and
Monitorsutilizationofsecuritymaterials,disposalofproductionwastes,
andreceiptofgoldandotherpreciousmetalsattheSPC.

governor
5. Treasury Department
ManagestheBSPsinternationalreservesatalevelandamixthatallowsthe
BSPtomeetanydemandsforforeigncurrency;
Undertakesopenmarketoperationsandtransactswithaccreditedgovernment
securitiesdealersandtherestofthemembersofthebankingsysteminpursuit
ofstrategiesforthedevelopmentofanactivesecondarymarketfor
governmentsecurities;and
ParticipatesinthePhilippineDealingSystemtoensurethecompetitivenessof
thePhilippinepesoanditsconvertibilityintootheracceptableforeign
currencies.
6. Systems and Methods Office
Ensuresawellorganizedandintegratedbankwideefforttodevelopand
maintainefficientsystemsandprocedures;and
Providesrecommendationsalongtheareasofmanualization,businessprocess
reengineering,andsystemssupport.

7. Corporate Planning Office

ProvidestechnicalsupporttoManagementintheformulationandapplicationof
strategicplansandpracticesandinthedevelopmentofguidelines/policiesin
preparationfordepartmentalworkplans.

governor
8. BSP Staff in the Anti-Money Laundering Council Secretariat
AssiststheAnti-MoneyLaunderingCouncilinimplementingtheprovisionofthe
Anti-MoneyLaunderingLaw,otherwiseknownasRepublicAct9160;
Receivestransactionreportsfromcoveredinstitutions,investigatessuspicious
transactions,andcausesthefilingofcomplaintswiththeDepartmentofJusticeor
theOmbudsmanfortheprosecutionofmoneylaunderingoffenses;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 fiveyear 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
AggregatesthevariousriskexposuresoftheBank;
Identifiesappropriateriskcontrolmeasures;and
Ensuresthatappropriateriskmanagementpracticesarebeingimplementedatall
times.

governor
10. Corporate Affairs Office
ImplementsthepublicrelationsandadvertisingprogramsoftheBSPtopromote
andenhanceitscorporateimage.

The Security Plant Complex

Security plant complex

1. Research and Development Group
Conductsresearchanddevelopmentstudiesonvariousaspectsofthe
operationsoftheSecurityPlantComplex(SPC),especiallyonbanknote
printingandcoinmintingoperations.

2. SPC Financial Services and Data Management Group

Preparesfinancialstatementsandconsolidatescashflows,income
statementsandbalancesheetsforSPC;
Recordsfinancialreceiptsanddisbursementsandprocessesbillsfor
payment;and
Coordinatesdatacollectionactivitiesandprovidestechnicalsupporton
softwareapplications.

3. Banknotes Securities and Printing Department

Managesandperformstheprintingofbanknotesandothersecurity
documents(i.e.passportsandlandtitles).

4. Mint and Refinery Operations Department

Managesandperformsthemintingofcoins,commemorativemedals,
andrefinesgoldpurchasedfromlocalpanners/miners.

5. Department of General Services

Managestheprocurementofsupplies,equipment,andservicesforthe
SPCandthegeneralmaintenanceandupkeepofitsfacilities.

TO BE CONTINUED
BY OUR NEXT REPORTER