MONETARY POLICY AND CENTRAL BANKING

Central banking in the Philippines

Banks in the Philippines are classified into:
 Universal banks
 Commercial banks
 Thrift
 Rural banks and cooperative banks
 Islamic banks
AUGUST 1, 1851
 The 1st bank in the Philippines was established
 Named Banco Filipino de Isabel II

1897 – 1st branch in Ilo-ilo, followed by another branch from Zamboanga and Cebu

When treaty of Paris was signed on 1898, it was the beginning of the
colonization of Americans. Followed this event, the management of the bank was
also transferred to the Filipinos from the Spaniard.

Jan. 1, 1912 – Banco Filipino was changed to Bank of the Philippine Islands (BPI)

In 1900, the First Philippine Commission passed Act No. 52, which placed all
banks under the Bureau of the Treasury and authorizing the Insular Treasurer to
supervise and examine banks and all banking activity. In 1929, the Department of
Finance, through the Bureau of Banking, took over bank supervision.

 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. The
Bureau of Banking under the Department of Finance took over the task of
banking supervision.
 Section 52 of RA No 7653
o The Bangko Sentral's holdings of its own notes and coins shall not
be considered as part of its currency issue and, accordingly, shall
not form part of the assets or liabilities of the Bangko Sentral.
Section 52.

1929– YEAR OF DEPRESSION

DEPRESSION
  presently called recessions
 in economics, a major downturn in the business
cycle characterized by sharp and sustained declines in economic
activity; high rates of unemployment, poverty, and homelessness;
increased rates of personal and business bankruptcy; massive
declines in stock markets; and great reductions in international
trade and capital movements. A depression may also be defined
as a particularly severe and long-lasting form of recession

GREAT DEPRESSION
 conventionally refers to the profound decline in production and
trade and other business activities

FEBRUARY 1929

The Bureau of Banking under the Department of Finance took over the
task of banking supervision.

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
Miguel Cuaderno Sr.
 (December 12, 1890 – January 14, 1975) was the 17th Finance
Secretary of the Philippines under Manuel Roxas and the first
Governor of the Central Bank of the Philippines from 1949 to 1960