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Group 1: Genesis, Nature and Definition of Central Banking

Chronology of Events: Central Banking in the Philippines

1900: Act No. 52 was passed by the First Philippine Commission placing all banks under the Bureau of Treasury. The Insular Treasurer was authorized to supervise and examine banks and banking activities.

February 1929: After 29 years, the Bureau of Banking under the Department of Finance took over the said task of banking supervision.

1939: A bill establishing a central bank was drafted by Secretary of Finance Manuel Roxas and approved by the Philippine Legislature. However, the bill was returned by the US government, without action, to the Commonwealth Government.

1946: A joint Philippine-American Finance Commission was created to study the Philippine currency and banking system. The Commission recommended the reform of the monetary system, the formation of a central bank and the regulation of money and credit. The charter of the Central Bank of Guatemala was chosen as the model of the proposed central bank charter.

August 1947: A Central Bank Council was formed to review the Commission’s report and prepare the necessary legislation for implementation.

February 1948: President Manuel Roxas submitted to Congress a bill “Establishing the Central Bank of the Philippines, defining its powers in the administration of the monetary and banking system, amending pertinent provisions of the Administrative Code with respect to the currency and the Bureau of Banking, and for other purposes.

June 15, 1948: The bill was signed into law as Republic Act No. 265 (The Central Bank Act) by President Elpidio Quirino.

January 3, 1949: The Central Bank of the Philippines (CBP) was inaugurated and formally opened with Hon. Miguel Cuaderno, Sr. as the first governor. RA 265 guided the CBP in the implementation of its duties and responsibilities, particularly in relation to the promotion of economic development in...