Name
The Central Bank Of The Philippines Is Directly Named "Bangko Sentral Ng Pilipinas" (BSP) In Both Tagalog And English, Which Is To Distinguish It From Its Predecessor, The Central Bank Of The Philippines (CBP).
History
After The Spanish-American War In 1898, The United States Came To Rule The Philippines. The Following Year, In 1900, The First Philippine Commission Formed By The United States Passed Act No. 52, Which Placed All Banks In The Philippines Under The Supervision Of The Bureau Of The Treasury. In February 1929, The Philippine Department Of Finance Established The Bureau Of Banking, Which Took Over Banking Supervision.
The Great Panic Broke Out In The United States In 1930. In Order To Reduce The Competitive Pressure On The Philippines, And As A Price For Promising The Philippines Independence In 10 Years, The US Congress Passed The Hare-Hawes-Cutting Bill In 1933, But The Bill Was Rejected By The Philippine Senate. Therefore, The Following Year, In 1934, The US Congress Passed The Teddings-McDuffie Act, Which Established Tariffs And Quotas For The Philippines And Announced That It Would Grant The Philippines Independence On July 4, 1946. After Carefully Studying The 1933 Hale-Hoss-Katyn Act, A Group Of Filipinos Had Proposed The Concept Of Establishing A Central Bank In The Philippines And Proposed The Prototype Of The Central Bank Establishment Bill.
The Following Year, In 1935, The Dominion Of The Philippines Was Established. The Monetary System Began To Be Jointly Controlled By The Ministry Of Finance And The Treasury, And The Philippine Peso Implemented A Dollar Exchange Standard, Which Required 100% Gold Reserves To Support Currency Circulation. Therefore, The Public Discussion On The Establishment Of A Central Bank Continued.
Then In 1939, The Dominion National Assembly Passed A Bill Establishing A Central Bank. And Because It Was A Financial Bill, It Required The Approval Of The President Of The United States To Take Effect. However, Due To Strong Opposition From Vested Interests, President Franklin Roosevelt Vetoed The Bill.
In The Middle And Late Stages Of World War II, Japan Occupied The Philippines And Established A Puppet Regime, The Second Philippine Republic, In October 1943. The Following Year, In 1944, The Philippine National Assembly Passed A Second Bill Establishing A Central Bank, But Soon After, In 1945, U.S. Troops Counterattacked The Imperial Army In The Philippines And Occupied Manila, So The Process Of Establishing A Second Central Bank Was Blocked.
In 1946, When The Third Philippine Republic Became Fully Independent And Manuel Rojas Became President, The Establishment Of A Monetary Authority Became A National Priority, So The President Asked The Treasury Department To Immediately Start Drafting A Charter On The Monetary Authority. The Joint Philippine-American Finance Commission, Established In August 1947 Under The Chairpersonship Of Secretary Of Finance Miguel Cuaderno, Began Work On The Study. Soon After, The Study Was Published, Announcing That The Charter Of The Central Bank Of Guatemala Had Been Selected As The Model For A Central Bank Charter. Then In February 1948, A Charter Proposing The Establishment Of A Monetary Authority Was Sent To Congress. On June 15 Of The Same Year, The New President, Elpidio Quirino, Signed Republic Act No. 265, The Central Bank Act Of 1948. The Following Year, On January 3, 1949, The Central Bank Of The Philippines (CBP) Was Officially Established, With Miguel Cuaderno Serving As The First Central Bank Governor. Since Then, The Central Bank Of The Philippines Has Served As The National Currency Issuing Authority Of The Philippines, But At That Time It Did Not Have Complete Financial And Administrative Autonomy.
On November 29, 1972, In Order To Better Adapt The Central Bank Act To The Development Of The Philippine Economy, President Ferdinand Marcos Signed Presidential Decree No. 72, The Amendment To Republic Act No. 265 (AMENDING REPUBLIC ACT No. 265), Proposing Programs Aimed At Ensuring The Sound Development Of The Financial System. At The Same Time, It Also Legally Regulates The Objectives And Functions Of The Central Bank Of The Philippines (CBP), Policy Formulation Methods, Scope Of Authority, And Procedures For Handling Problems. Since Then, The Authority Of The Central Bank Of The Philippines Has Expanded From Supervising Only The Domestic Banking System To Supervising The Entire Financial System. In 1973, The Provisional National Assembly Of The Philippines Issued A New Constitution Calling For The Establishment Of An Independent Central Monetary Authority, And The President Signed Presidential Decree No. 1801 Designating The Bank Of The Philippines As The Central Monetary Authority. In 1981, Republic Decree No. 265 Was Amended Again To Further Improve Its Functions In Supervising The Financial System, And Also Increased The Statutory Capital Of The Philippine Central Bank From 10 Million Pesos To 10 Billion Pesos.
In 1987, The New Philippine Constitution Was Issued, And The Philippine Central Bank Increased Its Statutory Capital. At The Same Time, The Composition Of The Members Of The Monetary Board Was Amended To Add Full-time Members From The Private Sector. From Then On, The Monetary Board Began To Serve As An Independent Central Monetary Authority.
On June 14, 1993, In Accordance With The Provisions Of The 1987 Constitution, President Fidel Ramos Signed Republic Act No. 7653, The New Central Bank Act, Establishing The Central Bank Of The Philippines (BSP). The Act Came Into Effect On July 3, 1993. The Central Bank Of The Philippines (BSP) Has Since Taken Over The Central Bank Of The Philippines (CBP), Which Was Originally Established In 1949, As The Central Bank With Financial And Administrative Autonomy.
On January 3, 1999, To Celebrate The 50th Anniversary Of Its Establishment, The Central Bank Of The Philippines Established The "Central Bank Of The Philippines Museum".
On The Evening Of September 26, 2012, The Official Website Of The Central Bank Of The Philippines Was Attacked By A Group Of Anonymous Philippine Hackers. The Attackers Claimed That This Was To Protest The Introduction Of The Cybercrime Prevention Act Of 2012, But A Few Hours Later, The Official Website Resumed Normal Work.
