New Central Bank Act FINAL
New Central Bank Act FINAL
Notes and Coins issued by the Bangko Sentral shall be liabilities of the
Bangko Sentral and may be issued only against, and in amounts not
exceeding , the assets of the Bangko Sentral.
Shall not be considered as part of its currency issue and accordingly, shall
not form part of the assets or liabilities of the Bangko Sentral.
e. Legal Tender Power of BSP ( Sec. 52)
Legal Tender
- refers to the type of currency which a debtor can compel a creditor to
accept in case of obligation to pay a sum of money.
All notes and coins issued by the Bangko Sentral shall be fully guaranteed
by the Government of the Republic of the Philippines and shall be legal
tender in the Philippines for all debts, both public and private.
e. Legal Tender Power of BSP ( Sec. 52)
The Monetary Board shall prescribe the amounts of notes and coins to be
printed and minted, respectively, and the conditions to which the
printing of notes and the minting of coins shall be subject. The Monetary
Board shall have the authority to contract institutions, mints or firms for
such operations.
All expenses incurred in the printing of notes and the minting of coins
shall be for the account of the Bangko Sentral.
g. Interconvertibility of Currency (Sec.55)
The Bangko Sentral shall withdraw from circulation and shall demonetize
all notes and coins which for any reason whatsoever are unfit for
circulation and shall replace them by adequate notes and coins.
A currency note shall be considered unfit for circulation when:
a. It contains heavy creases which break the fiber of the paper and indicate
that disintegration has begun. Provided, however, that mere creasing or
wrinkling which has not broken nor weakened the note does not render the
note unfit for circulation; or
• Scope of examination may include, but need not be limited to, the following:
(1) Appraisal of the overall quality of corporate governance;
(2) Assessment of the risk management system, which shall include the
evaluation of the effectiveness of management oversight and self-
assessment functions (e.9., internal audit, risk management and
compliance); adequacy of policies, procedures, and limits; effectiveness of
risk measurement, monitoring and management information system; and
robustness of internal controls;
(3) Review of the institution's operations and overall risk profile;
(4) Evaluation of financial performance, capital adequacy, asset quality, and
liquidity; and
(5) Any other activity relevant to the above
E. Supervision and examination of banks and quasi-banking
institutions
D. Period of Conservatorship
• The conservatorship shall not exceed one (1) year.
F. Conservatorship of Banks
The receiver shall immediately gather and take charge of all the assets and
liabilities of the institutions, administer the same for the benefit of its
creditors, and exercise the general powers of a receiver under the Revised
Rules of Court.
The receiver shall determine as soon as possible, but not later than (90)
days from take over, whether the institution may be rehabilitated or
otherwise placed in such a condition as that it may be permitted to
resume business with safety to its depositors and creditors and the general
public.
H. Proceedings for Bank Liquidation
The receiver shall file ex parte with the proper regional trial court, and
without requirement of prior notice or any other action, a petition for
assistance in the liquidation of the institution pursuant to liquidation
adopted by the PDIC for general application to all closed banks.