Author(s): Shela Marie Yap-Virtudazo
A group of Filipinos had conceptualized a financial institution for the Philippines as early as 1933. From then on, the administration that followed the transition government of President Corazon Aquino saw the turning of another chapter in the Philippine central banking. President Fidel Ramos following former President Aquino, then signed into law the Republic Act no. 7653, the new financial institution Act on Flag Day, 1993. The law provides for the establishment of an independent monetary authority to be referred to as the Bangko Sentral ng Pilipinas. The role of Bangko Sentral is to maintain price stability explicitly as a primary objective. The law also gives the Bangko Sentral fiscal and administrative autonomy which that old Central Bank did not have, thus on July 3, 1993; the New Central bank Act took effect. (Bangko Sentral ng Pilipinas). With this, one of the responsibilities of Bangko Sentral ng Pilipinas is to provide Financial Supervision in which they supervise banks and exercises regulatory powers over non-bank institutions performing quasi-banking functions. This includes Universal banks as well.