OVERVIEW

OF THE
BSP
 WHAT IS 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
country’s central monetary authority. The BSP
enjoys fiscal and administrative autonomy from
the National Government in the pursuit of its
 HISTORY
Creating a Central
Bank for 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.
   
August 1947 A Central Bank Council was formed to review the Commission’s report and
prepare the necessary legislation for implementation.
   
February 1948 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.
15 June The bill was signed into law as Republic Act No. 265 (The Central
1948 Bank Act) by President Elpidio Quirino.
   
3 January The Central Bank of the Philippines (CBP) was inaugurated and
1949 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.
   
November RA No. 265 was amended by Presidential Decree No. 72 to make
1972 the CBP more responsive to changing economic conditions.
January Further amendments were made with the issuance of PD No. 1771 to improve and
1981 strengthen the financial system, among which was the increase in the capitalization
of the CBP from P10 million to P10 billion.
   
1986
Executive Order No. 16 amended the Monetary Board membership to promote
greater harmony and coordination of government monetary and fiscal policies.
   
3 July
Republic Act No. 7653 was passed establishing the Bangko Sentral ng Pilipinas
1993
(BSP), replacing CBP as the country's central monetary authority.
   
14 Republic Act No. 11211 was passed amending RA No. 7653. The charter
February amendments bolster the capability of the BSP to safeguard price stability and
2019 financial system stability.
Overview of
Functions
and
Operations
 Objectives
• Maintain price stability
• Preserve monetary stability
• Convertibility of the national
currency.
 Responsibilities
• Liquidity Management.
• Currency issue.
• Lender of last resort.
• Financial Supervision.
• Management of foreign currency reserves..
• Determination of exchange rate policy.
• Other activities.
Organization in
BSP
LOCATION
OF PLANT
COMPLEX
The BSP Main Complex
The BSP Security Plant
Complex
The BSP Regional Offices and
Branches
• The BSP has three regional offices performing
cash operations, cash administration, loans
and rediscounting, bank supervision and gold
buying operations. These regional offices are
located in La Union, Cebu City and Davao
City.
 BASIS OF
PRINTING
PHILIPPINE
PESO
 DEMONETIZATION

MEANING REASON
• Demonetization is the • The BSP is
process by which a demonetizing the
central bank removes
old banknote series
the monetary value of
a legal tender currency as a way to
it issues. safeguard the
integrity of our
currency. 
 MONETARY POLICY

• The primary objective of BSP's

monetary policy is to promote a
low and stable inflation
conducive to a balanced and
sustainable economic growth.
 WHAT IS INFLATION?

• Inflation is the rate at which the

general level of prices for goods
and services is rising and,
consequently, the purchasing
power of currency is falling.