The Bangko Sentral ng Pilipinas will be given more power and additional capital to improve its corporate viability based on a law signed by President Duterte.
Republic Act No. 11211, which seeks to raise the BSP capital to P200 billion from P50 billion, was signed by the President last Feb. 14.
Malacanang released a copy of RA 11211 or an “Act amending Republic Act Number 7653 otherwise known as ‘The New Central Bank Act’ and for other purposes” yesterday.
“The President likewise signed Republic Act No. 11211, or the New Central Bank Act, the passage of which the Bangko Sentral ng Pilipinas (BSP) has been lobbying for during the last 20 years,” presidential spokesperson Salvador Panelo said.
“This new BSP law would give the financial institution more power and additional capital, thereby improving its corporate viability and independence as it promotes the stability of prices and the country’s financial system in support of its primary mandate of targeting inflation and supervising financial institutions,” Panelo said.
Under the law, the increase in BSP capitalization will be funded solely from the bank’s declared dividends in favor of the government.
The law also stated that the BSP is mandated to provide policy directions in the areas of money, banking, and credit and have supervision over the operations of banks and exercise regulatory and examination powers.
The BSP will also maintain price stability conducive to a balanced and sustainable growth the economy and employment. It will also oversee the payment and settlement systems in the country to promote sound and prudent practices, among others.
The new law likewise increased the number of BSP deputy governors to five from the present three. (Genalyn Kabiling)
