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THE International Monetary Fund has urged lawmakers to pass the
long-delayed Bangko Sentral ng Pilipinas charter amendment.
IMF executive board said as BSP’s bank
monitoring improved in the recent months, authorities still have to
work for the passage of the central bank charter amendment, which is
essential to lift the threat of legal action against supervisors,
facilitate the operation of monetary policy and improve economic
surveillance of the non-bank sector.
The directors also called for the adoption of
legislation such as the corporate recovery act and the credit
information systems act “to help improve bank profitability and
lending.”
Despite President Gloria Arroyo’s appeal to
amend the BSP charter, Congress is yet to pass the resolution
amending the New Central Bank Act. (R.A. No. 7653) of 1993.
BSP said the amendment of legislative measures
would enhance the supervisory and enforcement powers of the central
bank, further improve prudential standards for the banking system,
intensify competition in the banking sector, and enhance its
independence.
The Senate version of the bill has been
finalized, while the House version is set for second reading.
The New Central Bank Act reorganized the central
bank into BSP, focused the bank’s mandate on the maintenance of
price stability, changed the composition of the Monetary Board
towards a private sector majority, and granted fiscal and
administrative autonomy to the bank.
-- Chino S. Leyco
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