The Bangko Sentral ng Pilipinas (BSP) (or the Philippine Central Bank) is the central monetary authority in charge of regulating money, banking and credit in the Philippines. The BSP is an independent government-owned corporation with the primary responsibility of supervising and regulating finance companies, bank operations, non-bank financial institutions performing quasi-banking functions, and other institutions performing similar functions. The primary objective of the BSP is to promote and preserve monetary stability and the convertibility of the national currency (Philippine peso).

The BSP is governed by the Monetary Board, composed of seven members appointed by the president of the Philippines, with the governor as its chair. Through the Monetary Board, the BSP  issues rules and regulations in the exercise of its regulatory powers and directs the management, operations and administration of the BSP.

Under the New Central Bank Act, the BSP performs the following functions, all of which relate to its status as the Philippines’ central monetary authority:

• Liquidity management—The BSP formulates and implements monetary policy to influence the money supply, consistent with its primary objective of maintaining price stability.
• Currency issue – The BSP has the exclusive power to issue the national currency. All notes and coins issued by the BSP are fully guaranteed by the government and are considered legal tender for all private and public debts.
• Lender of last resort – The BSP extends discounts, loans and advances to banking institutions for liquidity purposes.
• Financial supervision – The BSP supervises banks and exercises regulatory powers over non-bank institutions performing quasi-banking functions.
• Management of foreign currency reserves – The BSP seeks to maintain sufficient international reserves to meet any foreseeable net demands for foreign currencies in order to preserve the international stability and convertibility of the Philippine peso.
• Determination of exchange rate policy – The BSP determines the exchange rate policy of the Philippines. Currently, the BSP adheres to a market-oriented foreign exchange rate policy, principally to ensure orderly conditions in the market.
• Other activities – The BSP functions as the banker, financial advisor and official depository of the government, its political subdivisions and instrumentalities, and of government-owned and -controlled corporations.

The Philippine Deposit Insurance Corporation (PDIC) has the power to conduct examinations of banks with the prior approval of the Monetary Board and within terms and conditions determined by law. All banks are obligated to ensure deposit liabilities with the PDIC up to a maximum amount of PHP 500,000 or its foreign equivalent.

The Anti-Money Laundering Council has the power to conduct investigations of money laundering and other violations of Republic Act No. 9160 or the Anti-Money Laundering Act for the protection of the integrity and confidentiality of bank accounts and to prevent the Philippines from being used as a money laundering site for the proceeds of any unlawful activity. It monitors and receives covered or suspicious transaction reports from covered institutions under the law; investigates suspicious transactions and covered transactions deemed suspicious after an investigation; applies before the Court of Appeals, ex parte, for the freezing of any monetary instrument/property alleged to be proceeds of any unlawful activity; and implements such measures as may be necessary and justified to counteract money laundering.

The Insurance Commission (IC) has the authority to regulate and supervise insurance companies, intermediaries, pre-need companies and health maintenance organizations.

The Securities and Exchange Commission (SEC) also regulates certain types of financial services, such as financing and lending companies, as well as investment companies.