BFI - Midterms

• Bangko Sentral ng Pilipinas (BSP)


  The central bank of the Republic of the Philippines
• Bangko Sentral ng Pilipinas (BSP) was established under the provisions of the 1987 Philippine Constitution and the New Central Bank Act of 1993

  July 3, 1993
• Central Bank of the Philippines (CBP)

  The central bank of the Philippines established on January 3, 1949, which the BSP took over from
• Chronology of Events: Central Banking in the Philippines


  1. 1900 - Act No. 52 passed placing all banks under the Bureau of Treasury

  2. February 1929 - Bureau of Banking under the Department of Finance took over banking supervision

  3. 1939 - Bill establishing a central bank drafted by Secretary of Finance Manuel Roxas

  4. 1946 - Joint Philippine-American Finance Commission created to study Philippine currency and banking system

  5. August 1947 - Central Bank Council formed to review the Commission's report

  6. February 1948 - President Manuel Roxas submitted bill to Congress "Establishing the Central Bank of the Philippines"

  7. June 15, 1948 - RA No. 265 signed into law establishing the Central Bank of the Philippines

  8. January 3, 1949 - CBP inaugurated and formally opened

  9. November 1972 - RA No. 265 amended by Presidential Decree No. 72

  10. January 1981 - Further amendments made with PD No. 1771

  11. 1986 - EO No. 16 amended Monetary Board membership

  12. July 3, 1993 - RA Act No. 7653 passed establishing the Bangko Sentral ng Pilipinas (BSP)

  13. February 14, 2019 - RA No. 11211 passed amending RA No. 7653
• BSP Seal/Logo


  • Philippine Eagle represents the BSP and the Filipinos it serves, signifying strength of leadership
  • Outstretched wings and tail feathers represent the BSP's balanced, inclusive approach to growth and development
  • Head and eyes faced east represent the BSP's vigilance and readiness to seize challenges and opportunities
  • Talons represent the strong will, resolve, and the monetary and financial tools that the central bank uses in discharging its mandates
  • Perfect circle shape conveys the singular and integrative nature of the BSP and its impartial approach to holistic growth and development
  • Golden Stars represent the 3 pillars of central banking and the BSP's commitment to promote and sustain a high quality of life for all Filipinos
  • Corporate text signifies the Bank's operational efficiency, clarity of vision, and single-mindedness of purpose
  • Yellow gold color aims to promote economic growth and prosperity
  • Two-tone midnight blue is evocative of the honor, dignity, and noble character of the Filipino people, and the BSP's unwavering commitment to serve the nation
• Demonetization


  The process by which a central bank removes the monetary value of a legal tender currency it issues
• Vision of BSP


  To be recognized globally as the monetary authority and primary financial system supervisor that supports a strong economy and promotes a high quality of life for all Filipinos
• Mission of BSP


  To promote and maintain price stability, a strong financial system, and a safe and efficient payments and settlements system conducive to a sustainable and inclusive growth of the economy
• Core Values of BSP


  • Excellence
  • Patriotism
  • Integrity
  • Solidarity
  • Accountability
• RA No. 7653 (The New Central Bank Act)


  Provides establishment of an independent monetary authority to be known as the Bangko Sentral ng Pilipinas, with the primary objective of maintaining price stability explicitly for the economy's growth, and fiscal and administrative autonomy
• RA No. 265 (The Central Bank Act)


  Established the Central Bank of the Philippines in 1948, which was later amended in 1972 and 1981 to make it more responsive to changing economic conditions, and gave it a development role to support recovery efforts of the country
• Components of the Philippine Financial System


  • Bangko Sentral ng Pilipinas
  • Banking Institutions (Private and Government)
  • Non-Bank Financial Institutions (Private and Government)
• Private Banking Institutions


  • Commercial Banks
  • Universal Banks/Expanded Commercial Banks
  • Thrift Banks
  • Rural Banks
  • Cooperative Banks
• Government Banking Institutions


  • Development Bank of the Philippines
  • Landbank of the Philippines
  • Al-Almanah Islamic Investment Bank
• Private Non-Bank Financial Institutions


  • Investment Houses
  • Investment Banks
  • Financing Companies
  • Securities Dealers
  • Savings and Loans Associations
  • Mutual Funds
  • Pawnshops
  • Lending Investors
  • Pension Funds
  • Insurance Companies
  • Credit Unions
• Government Non-Bank Financial Institutions


  • Government Service Insurance System (GSIS)
  • Social Security System (SSS)
  • PAGtutulungan sa kinabukasan: Ikaw, Bangko, Industriya, at Gobyerno (PAG-IBIG)
• Monetary Board Members

  • Eli M. Remolona, Jr. (Chairman and Governor)
  • Ralph G. Recto
  • Benjamin E. Diokno
  • V. Bruce J. Tolentino
  • Anita Linda R. Aquino
  • Romeo L. Bernardo
  • Rosalia V. De Leon
• BSP Sector Heads

  • Francisco G. Dakila, Jr. (Monetary and Economics Sector)
  • Chuchi G. Fonacier (Financial Supervision Sector)
  • Mamerto E. Tangonan (Payments and Currency Management Sector)
  • Bernadette Romulo-Puyat (Regional Operations and Advocacy Sector)
  • Eduardo G. Bobier (Corporate Services Sector)
• A central bank could be a national bank, a reserve bank or a monetary authority.

  False
• The Monetary Board has 7 members excluding the governor

  FALSE
• The Central Bank Act was signed into law by then President Elpidio Quirino

  TRUE
• BSP regulates the issuance of both government and private bonds

  FALSE
• Dr. Eli Rimolona Jr. is the 7th Governor of Central Bank of the Philippines

  FALSE
• Financial Supervision Sector under the governor is tasked to oversee activities related to monetary policy

  FALSE
• Currencies unfit for circulation need to be retired, deposited, or exchanged in banks and eventually become demonetized.

  TRUE
• Only 1 is required as representative of the government to the Monetary Board while the other are from private sector.


  True
• A former Governor of BSP may not assume office in Monetary Board

  FALSE
• Demonetization is where a central bank removes monetary value of a legal tender currency issues.

  TRUE
• BSP lends out to distressed banks only when all the resources have been exhausted as last resort.

  TRUE
• The primary objective of the BSP is financial stability conductive to a balanced and sustainable growth of the economy.

  FALSE
• Each sector under the Governor is headed by a Deputy Governor who at times may act as chief executive of BSP in the absence of a governor.

  FALSE
• Commercial banks and universal banks typically falls under the private banking institutions under the Philippine financial system

  TRUE
• Commercial banks offer all in one banking services such as retail, wholesale, & investment banking

  FALSE
• Only Universal Banks may invest in the equity of an enterprise engaged in non-allied related activities.

  TRUE
• Islamic Banks do not accept interest in money

  TRUE
• Commercial Banks focus to serve the needs of the agricultural sector.

  FALSE
• It is typically more expensive to establish a bank in the province.

  FALSE
• Republic Act No. 8791 is also known as the General Banking Law of 2000

  TRUE
• Finance


  The study of the management, movement, and raising of money
• System


  A set of things working together as parts of a mechanism or an interconnecting network