A central bank is the monetary authority of a country that regulates banks, money supply, and interest rates to achieve monetary stability and economic growth. Central banks were first established in Europe in the 1600s-1800s and most countries had organized their own by the late 1800s. The Central Bank of the Philippines was established in 1948 through the Central Bank Act to maintain monetary stability and promote economic growth. It was formally opened in 1949 and has had several governors throughout its history.

2.  A central bank is not a profit maximizer.
 It is basically concerned in achieving
monetary stability, full employment, and
economic growth.

3. Central Bank
- the central monetary authority which
provides policy direction in the areas of
money, credit, and banking.
- it supervises the operation of banks and
regulates the activities of non-bank
financial intermediaries.

4. Main Functions of Central Bank
1) It acts as a lender of last resort, and
2) Controller of money supply

5. Bank of England
- organized in 1694 as a joint stock
company
- oldest real central bank
The Riksbank of Sweden
- established in 1656 as a private bank
- reorganized in 1668 as a State bank

6. The Bank of France
- it was created in 1800 mainly from
private capital and the rest from
government funds
- its founder is Napoleon Bonaparte

7. Other Central Banks
 Bank of Netherlands (1814)
 National Bank of Austria (1817)
 Bank of Norway (1817)
At the end of 1800, almost all countries
in Europe and other parts have organized
their own central banks.

8. Economics – proper allocations and
efficient use of scarce resources to satisfy
human wants.
Through the powers and policies of a
central bank it can:
 Direct flow of money and credit into the
various sectors of the economy.
 Improve the social and economic
conditions of the poor.

9.  Miguel Cuaderno
– 1st governor of the Central Bank
– developed the concept of central
bank in 1933
– chose the charter of the Central
Bank of Guatemala as the model for
our Central Bank
 A Central Bank Council was formed in
August 1947.

10.  In 1948, President Manuel Roxas
submitted to Congress a bill establishing
the Central Bank of the Philippines. This
bill was to become Republic Act (RA)
No. 265, also known as The Central Bank
Act.
 On June 15, 1948, the Charter of the
Central Bank was signed into law by
President Elpidio Quiriino.

11.  On January 3, 1949, the Philippine
Central Bank was inaugurated and
formally opened.
 In 1900, Act No. 52, placed all banks
under the Bureau of Treasury.
 In February 1929, the Bureau of banking
took over the supervisions of banks.

12. Original Objectives
1) Maintenance of monetary stability in the
Philippines;
2) Preservation of the international value of
the peso and its convertibility into other
freely convertible currencies; and
3) Promotion of a raising level of
production, employment and real
income in the Philippines.

13. Amended Objectives
1) To maintain internal and external
monetary stability n the Philippines, and
to preserve the international value of
the peso and the convertibility of the
peso into other freely convertible
currencies; and
2) To foster monetary, credit, and
exchange conditions conducive to a
balanced and sustainable growth of the
economy.

14. Miguel Cuaderno
Andres V. Castillo
Alfonso Calalang
Gregorio S. Licaroz
Jaime C. Laya
Jose Fernandez Jr.
Jose L. Cuisia Jr.
Gabriel C. Singson
1949 – 1960
1961 – 1967
1968 – 1970
1970 – 1981
1981 – 1984
1984 – 1990
1990 – 1993
1993 – present