<P> As required by the Tydings--McDuffie Act, the National Assembly of the Philippines in 1939 passed a law establishing a central bank . As it was a monetary law, it required the approval of the President of the United States; Franklin D. Roosevelt did not give his . A second law was passed in 1944 under the Japanese - controlled Second Republic during the Second World War, but the 1945 arrival of American liberation forces, aided by Philippine Commonwealth troops and recognised guerrillas, aborted its implementation . </P> <P> Shortly after President Manuel Roxas assumed office in 1946, he instructed then - Finance Secretary Miguel Cuaderno, Sr. to draw up a charter for a central bank . The establishment of a monetary authority became imperative a year later as a result of the findings of the Joint Philippine - American Finance Commission chaired by Cuaderno . The Commission, which studied Philippine financial, monetary, and fiscal problems in 1947, recommended a shift from the dollar exchange standard to a managed currency system . A central bank was necessary to implement the proposed shift to the new system . </P> <P> Roxas then created the Central Bank Council to prepare the charter of a proposed monetary authority . It was submitted to Congress in February 1948 . By June of the same year, the newly proclaimed President Elpidio Quirino, who succeeded President Roxas, affixed his signature on Republic Act (RA) No. 265, the Central Bank Act of 1948. On January 3, 1949, the Central Bank of the Philippines was formally inaugurated with Miguel Cuaderno, Sr. as the first governor . The main duties and responsibilities of the Central Bank were to promote economic development and maintain internal and external monetary stability . </P> <P> Over the years, changes were introduced to make the charter more responsive to the needs of the economy . On November 29, 1972, President Ferdinand Marcos' Presidential Decree No. 72 amended Republic Act No. 265, emphasizing the maintenance of domestic and international monetary stability as the primary objective of the Central Bank . The Bank's authority was also expanded to include regulation of the entire financial system of the Philippines and not just supervision of the banking system . In 1981, RA 265, as amended, was further improved to strengthen the financial system, among the changes was the increase in the capitalization of the Central Bank from Php 10 million to Php 10 billion . </P>

Bangko sentral ng pilipinas (central bank of the philippines)