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Central Bank of the Philippines

 

Central Bank of the Philippines

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Central Bank of the Philippines

Bangko Sentral ng Pilipinas
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The BSP complex in Manila
Headquarters Roxas Boulevard, Manila, Philippines
Coordinates Coordinates: 14°33′42″N 120°59′16″E / 14.56154°N 120.98767°E / 14.56154; 120.98767

Established July 3, 1993
Governor Amando M. Tetangco, Jr.
Central bank of Philippines
Currency Philippine peso
ISO 4217 Code PHP
Reserves $83 billion(April 2013)
Bank rate 3.50%
Website
Preceded by Central Bank of the Philippines
(January 3, 1949-
July 3, 1993)

The Bangko Sentral ng Pilipinas (English: Central Bank of the Philippines; Spanish: Banco Central de Filipinas; commonly abbreviated as BSP in both Filipino and English), is the central bank of the Philippines. It was established on July 3, 1993, pursuant to the provision of Republic Act 7653 or the New Central Bank Act of 1993.[1]

History

In 1900, the First Philippine Commission passed Act No. 52,[2] 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.

By 1933, a group of Filipinos had conceptualised a central bank for the Philippine Islands.[3] It came up with the rudiments of a bill for the establishment of a central bank after a careful study of the economic provisions of the Hare–Hawes–Cutting Act, which would grant Philippine independence after 12 years, but reserving military and naval bases for the United States and imposing tariffs and quotas on Philippine exports. However, the Hare–Hawes–Cutting Act would be rejected by the Senate of the Philippines at the urging of Manuel L. Quezon. This Senate then advocated a new bill that won President Franklin D. Roosevelt's support, this would be the Tydings–McDuffie Act, which would grant Philippine independence on July 4, 1946.

During the Commonwealth Period, discussions continued regarding the idea of a Philippine central bank that would promote price stability and economic growth. The country's monetary system then was administered by the Department of Finance and the National Treasury, and the Philippine peso was on the exchange standard using the United States dollar, which was backed by 100 percent gold reserve, as the standard currency.

As required by the Tydings–McDuffie Act, the National Assembly of the Philippines in 1939 passed a law establishing a central bank. As it was a monetary law, it required the approval of the President of the United States; Franklin D. Roosevelt did not give his. A second law was passed in 1944 under the Japanese-controlled Second Republic, but the arrival of American liberation forces in 1945 aborted its implementation.

Shortly after President Manuel Roxas assumed office in 1946, he instructed then-Finance Secretary Miguel Cuaderno, Sr. to draw up a charter for a central bank.[4] The establishment of a monetary authority became imperative a year later as a result of the findings of the Joint Philippine-American Finance Commission chaired by Cuaderno. The Commission, which studied Philippine financial, monetary, and fiscal problems in 1947, recommended a shift from the dollar exchange standard to a managed currency system. A central bank was necessary to implement the proposed shift to the new system.

Roxas then created the Central Bank Council to prepare the charter of a proposed monetary authority. It was submitted to

Over the years, changes were introduced to make the charter more responsive to the needs of the economy. On November 29, 1972,

In the

In accordance with a provision in the 1987 Constitution, President

Within the complex of the Bangko Sentral ng Pilipinas, the nation's central monetary authority, resides a numismatist's haven — the Museo ng Bangko Sentral ng Pilipinas (English: Museum of the Central Bank of the Philippines). Inaugurated on January 3, 1999, as part of the celebration of the 50 years of central banking in the Philippines, the Museo showcases the Bank's collection of currencies.[13]

As repository and custodian of the country's numismatic heritage, the Museo collects, studies and preserves coins, paper notes, medals, artifacts and monetary items found in the Philippines during its different historical periods. These collections have been placed on permanent display at the Museo.

Designed to "walk" the visitor through a number of galleries dedicated to a specific historical period of the country, the Museo visually narrates the development of the Philippine economy, parallel to the evolution of its currency.[14] Complementary paintings from the BSP art collection,[15][16] together with chosen artifacts, enhance each gallery.

A panoramic memorabilia of 50 years of central banking in the Philippines, showcases the strides made in bringing about price stability, to sustain economic growth in the country. The exhibition hall also carries the busts of the governors of the Central Bank/Bangko Sentral.

On the evening of September 26, 2012, a Wednesday, the BSP website was hacked by a group named Anonymous Philippines in a protest against the recently passed Cybercrime Prevention Act of 2012.[17][18] The website was promptly restored in the early hours of the following day.[19]

On April 23, 2013, The Asian Banker named the BSP as the Best Macroeconomic Regulator in the Asia-Pacific Region for 2013 in The Asian Banker Leadership Achievement Awards in Jakarta, Indonesia.[20][21] The BSP was cited as a “good, strong, and fair-minded regulator.” About a month later, the BSP was given the country award by the Child and Youth Finance International in its 2013 International Summit in Istanbul, Turkey, in recognition of its initiative to integrate financial education in the Philippine elementary school curriculum.[22]

Roles and responsibilities

As prescribed by the , the main functions of the Bangko Sentral are:

  1. Liquidity management, by formulating and implementing monetary policy aimed at influencing money supply, consistent with its primary objective to maintain price stability,
  2. Currency issue. The BSP has the exclusive power to issue the national currency. All notes and coins issued by the BSP are fully guaranteed by the Government and are considered legal tender for all private and public debts,
  3. Lender of last resort, by extending discounts, loans and advances to banking institutions for liquidity purposes,
  4. Financial supervision, by supervising banks and exercising regulatory powers over non-bank institutions performing quasi-banking functions,
  5. Management of foreign currency reserves, by maintaining sufficient international reserves to meet any foreseeable net demands for foreign currencies in order to preserve the international stability and convertibility of the Philippine peso,
  6. Determination of exchange rate policy, by determining the exchange rate policy of the Philippines. Currently, the BSP adheres to a market-oriented foreign exchange rate policy, and
  7. Being the banker, financial advisor and official depository of the Government, its political subdivisions and instrumentalities and GOCCs.

Organization of the Bangko Sentral

The basic structure[23] of the Bangko Sentral includes:

  • The Monetary Board, which exercises the powers and functions of the BSP, such as the conduct of monetary policy and supervision of the financial system;
  • The Monetary Stability Sector, which takes charge of the formulation and implementation of the BSP's monetary policy, including serving the banking needs of all banks through accepting deposits, servicing withdrawals and extending credit through the rediscounting facility;
  • The Supervision and Examination Sector, which enforces and monitors compliance to banking laws to promote a sound and healthy banking system; and
  • The Resource Management Sector, which serves the human, financial and physical resource needs of the BSP.[24]

The powers and function of Bangko Sentral are exercised by its Monetary Board, whose seven members are appointed by the President of the Philippines. As provided for by the New Central Bank Act, one of the government sector members of the Monetary Board must also be a member of the President's Cabinet. Members of the Monetary Board are prohibited from holding certain positions in other government agencies and private institutions that may give rise to conflicts of interest. The members have fixed and overlapping terms, except for the cabinet secretary representing the incumbent administration.[25]

The current members of the Monetary Board are:

Convertible currencies

The Bangko Sentral has 19 currencies directly convertible with the Philippine Peso,[26] which serves as a benchmark for all Philippine banks.

Microfinance and financial inclusion

In 2000, the poverty alleviation. The BSP has become the prime advocate for the development of microfinance. To this end, the Bangko Sentral aims to:

  1. Provide the enabling policy and regulatory environment;
  2. Increase the capacity of the BSP and banking sector on microfinance operations; and
  3. Promote and advocate for the development of sound and sustainable microfinance operations.

The Bank is active in promoting a Mexico.

Anti-money laundering

With

In February 2013, Philippine President

Governors

Term started Term finished Name
Governors of the Central Bank
1949 1960 Miguel Cuaderno, Sr.
1961 1967 Andres Castillo
1968 1970 Alfonso Calalang
1970 1981 Gregorio Licaros
1981 1984 Jaime C. Laya
1984 1990 Jose B. Fernandez, Jr.
1990 1993 Jose L. Cuisia, Jr.
Governors of the Bangko Sentral
Mga Tagapangasiwa ng Bangko Sentral
1993 1999 Gabriel C. Singson
1999 2005 Rafael B. Buenaventura
2005 present Amando M. Tetangco, Jr.

Security Plant Complex

The Security Plant Complex, or SPC, was formally established on September 7, 1978 to safeguard the printing, minting, refining, issuance, distribution and durability of coins, banknotes, gold bars, government official receipts, lottery tickets, internal revenue stamps, passports, seaman identification record books, strip stamps, official documents, registration certificates, Torrens titles, treasury warrants, stocks and bonds, government contracts, ration coupons, official ballots, election return forms, checks and other security printing or minting jobs of the Philippine government.

Printing of official ballots and other public documents was later transferred to the

On August 4, 2003, President

SPC products

References

External links

  • official website

References

Template:Economy of the Philippines

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