Professional Documents
Culture Documents
Chapter I
Chapter I
CHAPTER I
ESTABLISHMENT AND
ORGANIZATION
OF THE BANGKO SENTRAL NG
PILIPINAS
ARTICLE I.
CREATION,RESPONSIBILITIES AND
CORPORATE POWERS OF THE
BANGKO SENTRAL
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1. As
a body corporate, it means a law passed by the
Congress creating Republic Act. No. 7653 otherwise known
as The Bangko Sentral ng Pilipinas.
2. It has a juridical personality and governed by its own
charter.
3. Though organized and operates like a private corporation,
profit motive is only secondary.
4. It is 100% owned by the government, the sole
owner/stockholder thereof.
5. The capital of the Bangko Sentral is Fifty Billion Pesos
(Php. 50,000,000,000)
*Juridical Personality is the characteristics of a nonhuman entity regarded by law to have the status of a
person.
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a. Investment Houses
b. Financing Companies
c. Securities Dealers
d. Investment Companies
e. Government Non-bank Financial Institutions:
1. GSIS
2. SSS
3. Pag-ibig
a. Pawnshop
b. Fund Managers
c. Private Insurance Companies
Characteristic of BSP:
1.
2.
3.
4.
Swap facility;
Interest rate policy;
Reserve requirement;
Moral Suasion;
*Moral Suasion statements or Acts by a regulatory
authority to encourage rather than coerce. Compliance
with accepted standards.
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(a) the Governor of the Bangko Sentral, who shall be the Chairman of
the Monetary Board. The Governor of the Bangko Sentral shall be
head of a department and his appointment shall be subject to
confirmation by the Commission on Appointments. Whenever the
Governor is unable to attend a meeting of the Board, he shall
designate a Deputy Governor to act as his alternate: Provided, That in
such event, the Monetary Board shall designate one of its members as
acting Chairman;
(b)
c)
Like a private corporation whose policy making body is the Board of Directors, the poers and
functions of the BSP is exercised by the Monetary Board whose members are appointed by the
President of the Philippines.
From the composition of the Monetary Board, it will be noticed that the majority of the
members come from the private sector. The thrust is to give the private business who
spearhead the economic growth and development of the country, more representation in the
board.
Composition of the Members of the Monetary Board:
Governor (Governor of the BSP) acts as the Chairman whose appointment by the President
of the Philippines is subject to confirmation by the Commission on Appointments (alternate is
the Deputy Governor) and with a term of six (6) years;
Cabinet Secretary (alternate is the Undersecretary) with a term of six (6) years.
5 Members from the Private Sector who shall serve full time. The first three (3) shall serve six
(6) years and the last two (2) shall serve three (3) years.
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Death
2. Resignation
3.Removal
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9.
Sec. 9 Disqualifications:
A.
-.
1.
2.
3.
4.
5.
6.
7.
B. Members representing the private sector during their tenure must not hold public office or public employment.
They must render full-time service.
C. Disqualification imposed by R.A. No. 6713 or the Code of Conduct & Ethical Standard for Public Officials &
Employees.
D. Violation of R.A. 3019 Anti-Graft & corrupt Practices Act.
E. To be qualified as member of the Monetary Board, a member should before assumption of office. He must:
8.
9.
Resign or
Divest his interest
F. Those who are directly connected in any multi-lateral banking or financial institution or has a substantial interest
in any private bank in the Philippines cannot be appointed as member of the Monetary Board within one (1) year
prior to his appointment, or can be employed in a banking /financial institution within two (2) year after the
expiration of his term except when he serves as an official representative of the Philippine Government to such
institutions.
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Section 11 Meeting
1. Who calls the meeting of the Monetary Board?
The meeting is called by:
- Governor or 2. Two (2) of its members
2. How many times does the Board meet and on what day?
-
At least once a week. Every Thursday; but on some occasions, it convenes to discuss urgent
issues.
3. What is quorum?
-
A quorum is the number of members present in a meeting to make the transaction valid.
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(a) issue rules and regulations it considers necessary for the effective
discharge of the responsibilities and exercise of the powers vested upon
the Monetary Board and the Bangko Sentral. The rules and regulations
issued shall be reported to the President and the Congress within fifteen
(15) days from the date of their issuance;
(d) adopt an annual budget for and authorize such expenditures by the
Bangko Sentral as are in the interest of the effective administration and
operations of the Bangko Sentral in accordance with applicable laws
and regulations; and
(e) indemnify its members and other officials of the Bangko Sentral,
including personnel of the departments performing supervision and
examination functions against all costs and expenses reasonably
incurred by such persons in connection with any civil or criminal action,
suit or proceedings to which he may be, or is, made a party by reason of
the performance of his functions or duties, unless he is finally adjudged
in such action or proceeding to be liable for negligence or misconduct.
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(a) prepare the agenda for the meetings of the Monetary Board and to
submit for the consideration of the Board the policies and measures
which he believes to be necessary to carry out the purposes and
provisions of this Act;
(b) execute and administer the policies and measures approved by the
Monetary Board;
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23. Authority to Obtain Data and Information. The Bangko Sentral shall have the authority to request
from government offices and instrumentalities, or
government-owned or controlled corporations, any data
which it may require for the proper discharge of its
functions and responsibilities. The Bangko Sentral
through the Governor or in his absence, a duly
authorized representative shall have the power to issue a
subpoena for the production of the books and records
for the aforesaid purpose. Those who refuse the
subpoena without justifiable cause, or who refuse to
supply the bank with data requested or required, shall be
subject to punishment for contempt in accordance with
the provisions of the Rules of Court.
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30. Proceedings in Receivership and Liquidation. Whenever, upon report of the head of the supervising or
examining department, the Monetary Board finds that a bank
or quasi-bank
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34. Refusal to Make Reports or Permit Examination. Any officer, owner, agent, manager, director or officer-incharge of any institution subject to the supervision or
examination by the Bangko Sentral within the purview of this
Act who, being required in writing by the Monetary Board or
by the head of the supervising and examining department
willfully refuses to file the required report or permit any lawful
examination into the affairs of such institution shall be
punished by a fine of not less than Fifty thousand pesos
(P50,000) nor more than One hundred thousand pesos
(P100,000) or by imprisonment of not less than one (1) year
nor more than five (5) years, or both, in the discretion of the
court.
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ARTICLE
V.
PUBLICATIONS
REPORTS
AND
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(a) not later than ninety (90) days after the end of each quarter,
an analysis of economic and financial developments, including
the condition of net international reserves and monetary
aggregates;
(b) within ninety (90) days after the end of the year, the
preceding year's budget and profit and loss statement of the
Bangko Sentral showing in reasonable detail the result of its
operations;
(c) one hundred twenty (120) days after the end of each semester,
a review of the state of the financial system; and
(d) as soon as practicable, abnormal movements in monetary
aggregates and the general price level, and, not later than
seventy-two (72) hours after they are taken, remedial measures in
response to such abnormal movements.
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