The Bangko Sentral ng Pilipinas

 Republic Act No. 7653

Introduction: Background
 The central bank of the country.
 Established: July 3, 1993

Based on the law, the declared policy of the state in creating/establishing the Bangko Sentral ng
Pilipinas:

 Section 1. The State shall maintain a central monetary authority that shall function
and operate as an independent and accountable body corporate in the discharge of
its mandated responsibilities concerning money, banking and credit. In line with this
policy, and considering its unique functions and responsibilities, the central
monetary authority established under this Act, while being a government-owned
corporation, shall enjoy fiscal and administrative autonomy.

 Nature of the BSP is a government-owned corporation.

Creation of the Bangko Sentral ng Pilipinas

 Section 2, RA 7653 – There is hereby established an independent central monetary

authority, which shall be a body corporate known as the Bangko Sentral ng Pilipinas

 Art. XII, Section 20 Constitution. The Congress shall establish an independent central
monetary authority, the members of whose governing board must be a natural-born
Filipino citizen, of known probity, integrity, and patriotism, the majority of whom shall
come from the private sector.

Responsibility and Primary Objective of BSP

 To provide policy directions in the areas of money, banking, and credit.

 Have supervision over the operations of banks and exercise such regulatory powers as
provided by law.
 To maintain price stability conducive to a balanced and sustainable growth of the
economy.
 Promote and maintain monetary stability and the convertibility of the peso.

BSP’s Primary Objective

To maintain price stability conducive to a balanced and sustainable growth of the
economy and employment.
What is BSP Monetary Policy?
 To manage the supply and cost of money and credit.
 To influence overall demand for goods and services.
 To attain price stability.