The House of Representatives has approved the new Central Bank Act that seeks to grant the Bangko Sentral ng Pilipinas (BSP) a P200 billion capital.
House Bill 5875 was passed on third and final reading.
The bill provides that the capitalization will be reviewed every five years upon joint recommendation by the Secretary of Finance, Secretary of Budget and Management and the Monetary Board. The payment of any unpaid subscription and/or increase in capitalization shall be appropriated in the General Appropriations Act.
The measure also mandates the BSP to provide policy directions in the areas of money, banking and credit; and to supervise the operations of banks and exercise such regulatory powers and other pertinent laws over the operations of finance companies and non-bank financial institutions performing quasi-banking functions, credit card companies, money changing businesses, pawnshops, e-money issuers, money forwarding businesses, payment and settlement system operators and other institutions performing similar functions, as may be determined by the Monetary Board.
Moreover, the BSP, its officials and employees, will be indemnified for any and all liabilities, losses, claims, demands, damages, deficiencies, costs and expenses of whatsoever kind and nature that may arise in connection with the performance of their duties done in good faith and consistent with the powers and functions authorized.
The measure also punishes persons, groups or companies that will refuse to supply the BSP with the required data or information that will help it perform its mandate.
“These will strengthen the tools which the BSP uses in performing its mandates; supplement the mechanisms in protecting savings of depositors; ensure the smooth flow of transactions in the financial system; and enhance the corporate viability of the BSP,” Speaker Feliciano Belmonte, Jr. said.
The New Central Bank Act establishes a reserve fund to mitigate future risks and contingencies inherent in carrying out the BSP-mandated functions as central monetary authority. It also allows the BSP to acquire shares of any kind or accept them as collateral, and will not participate in the ownership or management of any enterprise either directly or indirectly.