Established on 3 July 1993, through Republic Act 7653, the Bangko Sentral ng Pilipinas (BSP) succeeded the Central Bank of the Philippines, inheriting a legacy of monetary stewardship while forging a modern path toward a resilient and inclusive financial system.
BSP’s anniversary provides a window to celebrate the bank of all banks’ achievements, acknowledge its challenges, and look forward to its continued contributions to the nation’s growth.
The BSP was created to maintain price stability, promote financial system integrity, and support sustainable economic growth.
Over three decades, it has guided the country through global financial crises, domestic challenges, and transformative economic shifts.
By implementing prudent monetary policies, the BSP has worked tirelessly to keep inflation in check, stabilize the Philippine peso, and ensure the banking system’s resilience.
One of the BSP’s hallmark achievements is its adoption of inflation targeting since 2002. This framework has allowed the central bank to anchor inflation expectations, providing a stable environment for businesses and consumers alike.
The BSP’s proactive measures, such as adjusting policy rates and liquidity management, have been instrumental in mitigating the impact of external shocks, including the 2008 global financial crisis and the economic disruptions from the Covid-19 pandemic.
Democratizing financial service
Beyond monetary policy, the BSP has emerged as a global leader in promoting financial inclusion. Recognizing that a robust economy requires broad access to financial services, the BSP has spearheaded initiatives to bring underserved and unbanked Filipinos into the financial fold.
The National Strategy for Financial Inclusion, launched in 2015, underscores the BSP’s commitment to ensuring that all Filipinos, regardless of socioeconomic status, have access to affordable financial products.
The BSP’s push for digital finance has been transformative. Through its regulatory framework, the central bank has fostered innovation in digital payments, mobile banking, and fintech solutions.
The launch of the Philippine Identification System (PhilSys) and the expansion of digital platforms like InstaPay and PESONet have made financial transactions more seamless, particularly for rural and low-income communities.
As of 2024, the central bank reported that digital payments accounted for over 50 percent of retail transactions by volume, a testament to its efforts to modernize the financial ecosystem.
The BSP has also prioritized the stability and integrity of the financial system by adopting international standards, such as the Basel III framework.
It has ensured that banks remain well-capitalized and capable of withstanding economic shocks.
Its rigorous supervision and risk-based approach have strengthened public confidence in the banking sector, making it a cornerstone of the nation’s economy.