1900 Philippine-American Finance Commission
chaired by Mr. Cuaderno.
Act No. 52 was passed by the First Philippine
Commission placing all banks under the Bureau 1947
of Treasury. The Insular Treasurer was authorize
The Commission, which studied Philippine
d to supervise and examine banks and banking
financial, monetary and fiscal problems in 1947,
activities.
recommended a shift from the dollar exchange
February 1929 standard to a managed currency system. A
central bank was necessary to implement the
The Bureau of Banking under the Department of
proposed shift to the new system.
Finance took over the task of banking
supervision. February 1948
1933 Immediately, the Central Bank Council, which
was created by President Manuel Roxas to
A group of Filipinos led by Miguel Cuaderno, the
prepare the charter of a proposed monetary
first governor of the Central Bank, had
authority, produced a draft. It was submitted to
conceptualized a central bank for the
Congress in February 1948.
Philippines as early as 1933.
June 1948
It came up with the rudiments of a bill
for the establishment of a central bank for the the newly-proclaimed President Elpidio Quirino,
country after a careful study of the economic who succeeded President Roxas, affixed his
provisions of the Hare-Hawes Cutting Bill, The signature on Republic Act No. 265, the Central
Philippines independence bill approved by the Act of 1948. The establishment of the Central
US Congress. Bank of the Philippines was a definite step
toward national sovereignty.
1935 – 1941
1949
During the Commonwealth period (1935 –
1941), the discussion about a Philippine central Our own central bank was established in 1949
bank that would promote price stability and in order to make the monetary and banking
economic growth continued. The country’s systems provide to the rehabilitation and
monetary system then was administered by the development of our economy.
Department of Finance and the National
In 1949 – 11 head offices and 75
Treasury. The Philippines was on the exchange
branches of commercial banks in
standard using the US dollar – which was
operation
backed by 100 percent gold reserve – as the
During 1950’s – 7 commercial
standard currency.
banks established and 44
1939 branches was created
End of 1959 – 137 commercial
As required by the Tydings-McDuffie Act, the
banking offices in operation
Philippine legislature passed a law establishing
1960’s – known as the “decade
a central bank. As it was a monetary law, it
of banks proliferation.”
required the approval of the United States
Additional 24 commercial banks
president. However, President Franklin D.
with 483 branches were
Roosevelt disapproved it due to strong
established.
opposition from vested interests. A second law
was passed in 1944 during the Japanese November 29, 1972
occupation, but the arrival of the American
On November 29, 1972, Presidential Decree No.
liberalization forces aborted its implementation.
72 adopted the recommendations of the Joint
1946 IMF-CB Banking Survey Commission which
made a study of the Philippines banking system.
Shortly after President Manuel Roxas assumed
The Commission proposed a program designed
office in 1946, he instructed then Finance
to ensure the system’s soundness and healthy
Secretary Miguel Cuaderno, Sr. to draw up a
growth. Its most important recommendations
charter for a central bank. The establishment of
were related to the objectives of the Central
a monetary authority became imperative a year
Bank, its policy-making structures, scope of its
later as a result of the findings of the Joint
authority and procedures for dealing with
problem financial institutions.
1973
Thus, in the 1973 Constitution, the National
Assembly was mandated to establish an
independent central monetary authority. Later,
PD 1801 designated the Central Bank of the
Philippines as the central monetary authority
(CMA).
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.
1987
Years later, the 1987 Constitution adopted the
provisions on the CMA 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.
June 14, 1993
The administration that followed the transition
government of President Corazon C. Aquino saw
the turning of another chapter in Philippine
central banking. In accordance with a provision
in the 1987 Constitution, President Fidel V.
Ramos signed law Republic Act No. 7653, the
new Central Bank Act, on June 14, 1993.
July 3, 1993
Republic Act No. 7653 was passed establishing
the Bangko Sentral ng Pilipinas (BSP), replacing
CBP as the country's central monetary authority.
On July 3, 1993, the New Central Bank
Act took effect.
February 14, 2019
Republic Act No. 11211 was passed amending
RA No. 7653. The charter amendments bolster
the capability of the BSP to safeguard price
stability and financial system stability.