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the arts, science and technology
excellence in the CAVITE STATE UNIVERSITY through quality instruction and
responsive research and
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Written Report in Public Financial Management

( FREE ELEC 1 )

Submitted By:
Amora,
Cancino, Rossana L.
Simon, Julie Marian M.
Taligato, Emira J.

Submitted To:
Dr. Cynthia Facundo
 HISTORY OF CENTRAL BANK OF 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 1948 The bill was signed into law as Republic Act No. 265 (The Central Bank Act) by
President Elpidio Quirino.

3 January 1949 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.

November 1972 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.

January 1981 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.
1986 Executive Order No. 16 amended the Monetary Board membership to promote
greater harmony and coordination of government monetary and fiscal policies.

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

THE BSP VISION AND MISSION

BSP VISION BSP MISSION
The BSP aims to be recognized globally To promote and maintain price stability, a
as the monetary authority and primary strong financial system, and a safe and
financial system supervisor that supports a efficient payments and settlements system
strong economy and promotes a high conducive to a sustainable and inclusive
quality of life for all Filipinos. growth of the economy.

Naghahangad ang BSP na makilala sa Itaguyod at panatilihin ang katatagan ng

buong mundo bilang pangunahing presyo ng mga bilihin at ng sistemang
tagapamahala ng sistema at kaayusan ng pinansyal, at ng mahusay, ligtas at
pananalapi at ekonomiya upang maaasahang pamamaraan ng
maitaguyod ang mataas na antas ng pagbabayad upang makatulong sa patuloy
kabuhayan para sa lahat ng Filipino. na paglago ng ekonomiya at pag-angat ng
kabuhayan ng lahat ng mga Filipino.

BSP VALUES
EXCELLENCE PATRIOTISM INTEGRITY SOLIDARITY ACCOUNTABILITY

Consistently doing Selfless Performing Performing Taking

our best to master
our craft, commitment mandate with with team responsibility
continually to the service sincerity, spirits, acting for one’s or
improving our of the Filipino honesty and and thinking group of
competencies and
learning new people and uprightness, as one in the actions.
things in pursuit of the country. worthy of pursuit of
the organizational respect and common
goals comparable
to the best emulation of goals and
practices of other others. objectives.
central banks.
 OVERVIEW OF THE 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 mandated
responsibilities.

THE BSP SEAL

The new BSP logo is a perfect round

shape in blue that features three
gold stars and a stylized Philippine eagle
rendered in white strokes. These main
elements are framed on the left side with
the text inscription “Bangko Sentral
ng Pilipinas” underscored by a gold line
drawn in half circle. The right side
remains open, signifying freedom,
openness, and readiness of the BSP, as
represented by the Philippine eagle,
to soar and fly toward its goal. Putting all
these elements together is a solid blue
background to signify stability.

PRINCIPAL ELEMENTS
The Philippine Eagle, our national bird, is the . The three stars represent the three pillars of
world’s largest eagle and is a symbol of central banking: price stability, stable
strength, clear vision and freedom, the banking system, and a safe and reliable
qualities we aspire for as a central bank. payments system. It may also be interpreted
as a geographical representation of BSP’s
equal concern for the impact of its policies
and programs on all Filipinos, whether they
are in Luzon, Visayas or Mindanao.
 COLORS FONT OR TYPE FACE SHAPE
1. The blue background
signifies stability.
2. The stars are Non-serif, bold for “BANGKO Round shape to symbolize
rendered in gold to SENTRAL NG PILIPINAS” to the continuing and unending
symbolize wisdom, suggest solidity, strength, quest to become an
wealth, idealism, and and stability. The use of non- excellent monetary authority
high quality. serif fonts characterized by committed to improve the
3. The white color of the clean lines portrays the no- quality of life of Filipinos.
eagle and the text for nonsense professional This round shape is also
BSP represents manner of doing business at evocative of our coins, the
purity, neutrality, and the BSP. basic units of our currency
mental clarity.

LOCATION OF BANGKO SENTRAL NG PILIPINAS

The BSP Main The BSP Main Complex in Manila houses the offices of the
Complex Governor, the Monetary Board and the different operating
departments/ offices. The Complex has several buildings,
namely: 5-Storey building, Multi-storey building, the EDPC
building and the BSP Money Museum, which showcases the
Bank's collection of currencies.
The BSP Security The Security Plant Complex which is located in Quezon City
Plant Complex houses a banknote printing plant, a securities printing plant, a
mint and a gold refinery. The banknote printing plant and the mint
take care of producing currency notes and coins, respectively.
The BSP Regional The BSP has three regional offices performing cash operations,
Offices cash administration, loans and rediscounting, bank supervision
and gold buying operations.

These regional offices are located in

 La Union
 Cebu City and
 Davao City.

The BSP Branches They perform cash operations, cash administration, and in
certain areas, gold buying operations.

There are also 18 BSP branches situated in

 Batac (Ilocos Norte),

 Tuguegarao City (Cagayan),
 Dagupan City (Pangasinan),
 Cabanatuan City (Nueva Ecija),
 Angeles City (Pampanga),
 Lucena City (Quezon),
 Naga City (Camarines Sur),
  Legazpi City (Albay),
 Dumaguete City (Negros Oriental),
 Bacolod City (Negros Occidental),
 Iloilo City (Iloilo),
 Kalibo (Aklan),
 Tacloban City (Leyte),
 Cagayan de Oro City (Misamis Oriental),
 Ozamiz City (Misamis Occidental),
 Cotabato City,
 General Santos City (South Cotabato) and
 Zamboanga City (Zamboanga del Sur).

BANGKO SENTRAL NG PILIPINAS

Centrla Bank of the Philippines was started in 1949 but later change to Bangko Sentral ng
Pilipinas on 1993. The main responsibility of Bangko Sentral ng pilipinas is the Price
Stability of the economy.

Bangko Sentral ng Pilipinas is headed by one (1) governor with six (6) members of the
monetary board. Five (5) of them from private companies and one (1) from cabinet. Three
deputy governors are elected to guide the (1) Monetary Stability Sector, (2) Supervision and
Examination Sector and (3) Resources Management Sector.

Bank Notes are printed with 80% cotton and 20% abaca, 15 to 20 colors and intaglio printing
which becomes the money on an embossed looks. Money are dry for several days, checked
with several inspection and serial numbers to checked and critically inspected.

Banks can exchange or withdraw their money on Currency Management Group.

The hierarchy of making money are the following:

Security Plant Group Currency Management Group Banks Economy

Money is only projected in exchange of gold before printing to “enable a stable movement of
consumer price” and “to balance a sustainable economic grow.” Printing more money than
needed is ‘bad policy”
 KEY FUNCTIONS OF BANGKO SENTRAL NG PILIPINAS

1. Promotes price stability.

2. Supervises all banks.
3. Issues bank note and coins
4. Manages international reserves
5. Determines the exchange rate policy.
6. Bank of all banks
7. Acts as the main depositary of the goods.

THREE PILLARS OF CENTRAL BANKING

Price Stability Keeping inflation low to promote economic efficiency & improved the
well-being of the Filipino.

Financial Stability Ensures bank compliances with the prudential rules & regulation. It
ensures that banks cash & business in a safe and sound manner.

Efficient Payments & Enables people to make timely and accurate settlement of final
Settlement System transaction.