Chronology of Events: Central Banking in the Philippines

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.
1900

The Bureau of Banking under the Department of Finance took over the task of
banking supervision.
February 1929

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.
1939

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.
1946

A Central Bank Council was formed to review the Commission’s report and
prepare the necessary legislation for implementation.
August 1947
 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
February 1948
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.
15 June 1948

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.
3 January 1949

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 CBP’s authority was
expanded to include not only the supervision of the banking system but also the
regulation of the entire financial system.
November 1972
 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.
January 1981

Executive Order No. 16 amended the Monetary Board membership to promote

greater harmony and coordination of government monetary and fiscal policies.
1986

Republic Act No. 7653 was passed establishing the Bangko Sentral ng Pilipinas
(BSP), replacing CBP as the country's central monetary authority.
3 July 1993

Republic Act No. 11211 was passed amending RA No. 7653. The charter
amendments bolster the capability of the BSP to safeguard price stability and
financial system stability.
14 February 2019

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