Legislative Timeline and Milestones in the Development of Central Banking in the Philippines 1900
• The First Philippine Commission enacted Act No. 52, placing all banks under the supervision of the Bureau of the Treasury. The Insular Treasurer was granted authority over bank supervision and examination.
• The Bureau of Banking under the Department of Finance assumes responsibility for banking supervision.
• A central bank bill, drafted by Secretary of Finance Manuel Roxas, was approved by the Philippine legislature but returned by the US government to the Commonwealth Government without action.
• The Philippine-American Finance Commission was established to study the Philippine currency and banking system, recommending monetary reforms and the establishment of a central bank based on the Central Bank of Guatemala’s charter.
• The Central Bank Council was formed to review the commission’s recommendations and draft the necessary legislative measures.
• President Manuel Roxas submitted a bill to Congress titled “Establishing the Central Bank of the Philippines,” which included comprehensive provisions for the management of the monetary and banking system.
Article continues after this advertisement• President Elpidio Quirino enacted the bill as Republic Act No. 265 (The Central Bank Act)
Article continues after this advertisement• The Central Bank of the Philippines (CBP) was officially inaugurated with Miguel P. Cuaderno, Sr. as its first governor, operating under the broad policy objectives of RA No. 265 to promote economic development and maintain monetary stability.
• Presidential Decree No. 72 amended RA No. 265, enhancing the CBP’s role in maintaining monetary stability and expanding its regulatory authority over the financial system.
• Presidential Decree No. 1771 further amended the financial system’s framework, significantly increasing the CBP’s capitalization from PHP 10 million to PHP 10 billion.
• Executive Order No. 16 revised the membership of the Monetary Board to enhance the coordination of monetary and fiscal policies.
• Republic Act No. 7653 was passed, establishing the Bangko Sentral ng Pilipinas (BSP), which replaced the CBP as the national central monetary authority.
• Republic Act No. 11211 amended RA No. 7653, strengthening the BSP’s capabilities to ensure price stability and oversee the financial system’s stability. 1986
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