Title
Central Bank as Monetary Authority
Law
Presidential Decree No. 1801
Decision Date
Jan 16, 1981
Presidential Decree No. 1801 establishes the Central Bank of the Philippines as the central monetary authority, responsible for policy direction in money, banking, and credit, with supervisory and regulatory authority over banks and non-bank financial intermediaries.

Questions (PRESIDENTIAL DECREE NO. 1801)

The quoted law is Presidential Decree No. 1801, dated January 16, 1981.

To establish the Central Bank of the Philippines as the central monetary authority and to specify its policy direction functions in money, banking, and credit.

Section 14, Article XV of the 1987 Constitution (as referenced in the text) which provides for the establishment of a central monetary authority.

To provide policy direction in the areas of money, banking, and credit.

It shall have supervisory authority over the operations of banks.

The Central Bank shall exercise such regulatory authority as may be provided by law over the operations of non-bank financial intermediaries.

No. The decree recognizes that regulatory authority over non-bank financial intermediaries will be exercised as may be provided by law.

Until the National Assembly shall otherwise provide, the Central Bank of the Philippines, operating under existing laws, shall function as the central monetary authority.

That it shall establish a central monetary authority which shall provide policy direction in the areas of money, banking, and credit.

It confirms that the Central Bank functions as the central monetary authority until the National Assembly otherwise provides.

Money, banking, and credit.

Section 1.

It takes effect immediately.

It was signed by Ferdinand E. Marcos as President, and by Juan C. Tuvera as Presidential Executive Assistant.

The supervisory authority is explicitly stated to cover the operations of banks, while regulatory authority over non-bank financial intermediaries depends on other laws.

Because it formally designates the Central Bank of the Philippines as the central monetary authority and outlines its policy direction, supervision of banks, and regulatory role over non-bank intermediaries as provided by law.


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