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Bangko Sentral ng Pilipinas

Bangko Sentral ng Pilipinas
History
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. By 1933, a group of Filipinos had conceptualized a central bank for the Philippines. 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, the discussion about a Philippine central bank that would promote price stability and economic growth, continued. The country’s monetary system then was administered by the Department of Finance and the National Treasury. The Philippines was on the exchange standard using the US dollar, which was backed by 100 percent gold reserve, as the standard currency. In 1939, as required by the TydingsMcDuffie Act, the Philippine legislature passed a law establishing a central bank. As it was a monetary law, it required the approval of the United States president; Roosevelt did not give his. A second law was passed in 1944, during the Japanese occupation, but the arrival of the American liberation forces aborted its implementation. Shortly after President Manuel Roxas assumed office in 1946, he instructed Finance Secretary Miguel Cuaderno, Sr. to draw up a charter for a central bank. The establishment

Bangko Sentral ng Pilipinas Central Bank of the Philippines

The Central Bank Complex as depicted on the 100-peso bill Headquarters Established Governor Central Bank of Currency ISO 4217 Code Reserves Manila, Philippines 03 July 1993 Amando M. Tetangco, Jr. Philippines Philippine peso PHP PHP773,012bn or €12,098bn or $16,285bn, directly (March 2007) 7.50% 9.75% bsp.gov.ph Central Bank of the Philippines (03 January 194903 July 1993)

Base borrowing rate Base deposit rate Website Preceded by

The Bangko Sentral ng Pilipinas (BSP) is the central bank of the Republic of the Philippines. It was rechartered on July 3, 1993, pursuant to the provisions of the 1987 Philippine Constitution and the New Central Bank Act of 1993. The BSP was established on January 3, 1949, as the country’s central monetary authority.

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From Wikipedia, the free encyclopedia
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.

Bangko Sentral ng Pilipinas
265, the Central Bank Act of 1948. On January 3, 1949, the Central Bank of the Philippines was formally inaugurated with Miguel Cuaderno, Sr. as the first governor. The main duties and responsibilities of the Central Bank were to promote economic development and maintain internal and external monetary stability. Over the years, changes were introduced to make the charter more responsive to the needs of the economy. On November 29, 1972, Ferdinand Marcos’s Presidential Decree No. 72 amdended Republic Act No. 265, emphasizing the maintenance of domestic and international monetary stability as the primary objective of the Central Bank. The Bank’s authority was also expanded to include regulation of the entire financial system of the Philippines and not just supervision of the banking system. In 1981, RA 265, as amended, was further improved to strengthen the financial system, among the changes was the increase in the capitalization of the Central Bank from Ps10 million to Ps10 billion. In the 1973 Constitution, the Interim Batasang Pambansa (National Assembly) was mandated to establish an independent central monetary authority. Later, Presidential Decree No. 1801 designated the Central Bank of the Philippines as the central monetary authority (CMA). Years later, the 1987 Constitution adopted the CMA provisions from the 1973 Constitution that were aimed essentially at establishing an independent monetary authority through increased capitalization and greater private sector representation in the Monetary Board. In accordance with a provision in the 1987 Constitution, President Fidel V. Ramos signed Republic Act No. 7653, otherwise known as the New Central Bank Act, into law on June 14, 1993. The law provides for the establishment of an independent monetary authority to be known as the Bangko Sentral ng Pilipinas, its primary objective being the maintenance of price stability. This objective was only implied in the old Central Bank charter. The law also gives the Bangko Sentral fiscal and administrative autonomy which the old Central Bank did not have. On July 3, 1993, the New Central Bank Act took effect. 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.

Original BSP Seal

BSP Official seal of 1993 Roxas then created the Central Bank Council to prepare the charter of a proposed monetary authority. It was submitted to Congress in February 1948. By June of the same year, the newly-proclaimed President Elpidio Quirino, who succeeded President Roxas, affixed his signature on Republic Act (RA) No.

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From Wikipedia, the free encyclopedia
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. 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, individually 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. Complementary paintings from the BSP art collection, 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 July 31, 2008, the Central bank entered into a tax compromise agreement with the Bureau of Internal Revenue (BIR) and settled its P 3.6 billion. It represents 40% of the bank’s original P 9 billion tax obligation, for unpaid gross receipt taxes (GRT) and final withholding taxes on government securities sold from 2004 to 2007.[1]

Bangko Sentral ng Pilipinas
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. 8. and be reasonably responsible for the faults of the people behind it get the blame of the opposition to which it is grouped. t 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, 1. 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 2. Being the banker, financial advisor and official depository of the Government, its political subdivisions and instrumentalities and GOCCs. 3. and be reasonably responsible for the faults of the people behind it get the blame of the opposition to which it is grouped.

Roles and responsibilities
As prescribed by the New Central Bank Act, 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,

Organization of the Bangko Sentral
The basic structure 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,

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From Wikipedia, the free encyclopedia
• 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. 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, overlapping, terms, except for the cabinet secretary representing the incumbent administration. The current members of the Monetary Board are: • Amando M. Tetangco, Jr., Chairman • Peter Favila • Ignacio Bunye[2] • Raul A. Boncan • Juanita D. Amatong • Alfredo C. Antonio • Nelly F. Villafuerte

Bangko Sentral ng Pilipinas
3. promote and advocate for the development of sound and sustainable microfinance operations.

Anti-Money laundering
With money laundering being one of the perennial problems of the Philippines, the BSP has issued a number of measures to bring the Philippines’ regulatory regime on money laundering closer to international standards. In September 2001, the Anti-Money Laundering Act (AMLA) signed into law and defined moneya a criminal offense, prescribed penalties for such crimes committed and formed the foundation of a central monitoring and implementing council called the Anti-Money Laundering Council (AMLC). The AMLC is composed of the Governor of the Bangko Sentral as Chairman and the Commissioner of the Insurance Commission and the Chairman of the Securities and Exchange Commission as members. It acts unanimously in the discharge of its functions.

Governors Cash Management Center (CMC)
Initially proposed in April 1998 by the Bankers Association of the Philippines (BAP), the privately-run Cash Management Center (CMC) was envisioned to accept, store, and distribute cash reserves of all Metro Manilabased banks, which is estimated at P40 billion ($800 million). Unfortunately, since all these functions are among the core regulatory duties of the Bangko Sentral ng Pilipinas (BSP), the CMC was declared “illegal, irregular, extravagant, and unconscionable,” by the Philippines’ Commission on Audit (COA) in April 2005. However, the issuance failed to discourage monetary authorities from completing the project. During the same year, while the national government was reeling from the effects of overspending, the BSP, which regulates the country’s financial institutions, continued to support the project’s construction, worth anywhere from P150 to P170 million. Thus, directly or indirectly, the BSP contributed to the ballooning fiscal deficit at a time

Microfinance
In 2000, the General Banking Law mandated the BSP to recognize microfinance as a legitimate banking activity and to set the rules and regulations for its practice within the banking sector. In the same year, the BSP declared microfinance as its flagship program for poverty alleviation. The BSP has then 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

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From Wikipedia, the free encyclopedia
Term started 1949 1961 1968 1970 1981 1984 1990 1993 1999 2005 Term finished 1960 1967 1970 1981 1984 1990 1993 1999 2005 present Name

Bangko Sentral ng Pilipinas

Governors of the Central Bank Miguel Cuaderno, Sr. Andres V. Castillo Alfonso Calalang Gregorio S. Licaros Jaime C. Laya Jose B. Fernandez, Jr. Jose L. Cuisia, Jr. Gabriel C. Singson Rafael B. Buenaventura Amando M. Tetangco, Jr.

Governors of the Bangko Sentral

when Malacañang issued orders asking agencies to cut unnecessary expenses. Although the facility broke ground in November 2003 at the BSP’s compound in Quezon City, the cash center’s construction—and its eventual completion—proceeded with very little hitches. While the BSP did suspend work on the CMC days after the COA issued the document, the suspension lasted for only a month. In June of the same year, the BSP’s Monetary Board (MB), whose deliberations are kept private, lifted the suspension, allowing the project to be finally completed late 2005. However, to this day, the CMC remains inoperable.

Security Printing Plant

Banknotes Official ballots Torrens Passports titles

Checks

The Security Plant Complex
The Security Plant Complex was formally established in 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 of minting jobs of the government.

Official documents (birth, marriage, death)

References
• About the Bank

External links
• Official site: Bangko Sentral ng Pilipinas

Notes
[1] gmanews.tv, Central bank settles tax case, a first in RP history

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From Wikipedia, the free encyclopedia
[2] Ignacio Bunye will join the monetary board on June 22, 2008 replacing

Bangko Sentral ng Pilipinas
Vicente B. Valdepeñas, Jr. whose term expires in June.

Retrieved from "http://en.wikipedia.org/wiki/Bangko_Sentral_ng_Pilipinas" Categories: Government of the Philippines, Economy of the Philippines, Central banks This page was last modified on 18 April 2009, at 15:36 (UTC). All text is available under the terms of the GNU Free Documentation License. (See Copyrights for details.) Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a U.S. registered 501(c)(3) taxdeductible nonprofit charity. Privacy policy About Wikipedia Disclaimers

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