CEBU, Philippines — To promote better appreciation of the amended charter of the Bangko Sentral ng Pilipinas (BSP) among bankers, regional stakeholders and the media, BSP yesterday conducted the Cebu leg of the information campaign of Republic Act (RA) 1121 held at Marco Polo Plaza Cebu.
The briefing on the ‘New Central Bank Act’ was initiated in line with BSP’s efforts to strengthen stakeholder relations as well as to bring central banking closer to the public.
BSP General Counsel and Senior Assistant Governor Elmore O. Capule said “RA 11211 enhances the central bank’s capacity to promote price stability, financial stability and a safe and reliable payments system. The law, which central bankers worked on for more than 20 years, is ultimately aimed at enhancing the economic and financial well-being of Filipinos.”
Atty. Capule was joined by Supervisory Policy and Research Deputy Director Noel P. Tianela and Department of Economic Research Acting Deputy Director Joselito R. Basilio for the Cebu leg campaign.
In his discussion, Dr. Basilio said the amendments to the BSP Charter, specifically the restoration of BSP’s authority to issue its own debt papers, gives the Central Bank more flexibility in determining the timing and size of its monetary operations.
The new law likewise widens the supervision coverage of BSP, which now includes money service businesses, credit-granting businesses, and payment system operators.
Moreover, the amended law also empowers BSP to oversee payment and settlement systems giving the Central Bank with greater legal and regulatory framework in providing a more stable hand to the financial system.
“As a financial regulator, amendments to the BSP Charter are expected to enhance its offsite supervision and examination framework and provide expanded supervisory, examination and enforcement powers,” said Atty. Tianela.
Atty. Capule said the amendments were designed to help BSP reinforce corporate and financial viability, strengthen monetary stability function, strengthen its financial supervision function, and to introduce more
financial forms.
The new charter also restores BSP’s authority to obtain data from any person or entity for policy development purposes.
RA 11211 also permits BSP to increase its capitalization from P50 billion to P200 billion for it to be more effective. The funds will be sourced from dividends declared by BSP in favor of the national government.
The new charter likewise exempts BSP from paying taxes on income derived from its administrative functions.
With these aspects in BSP’s charter, Basilio said it is largely given that the Philippine economy will remain to be among the fastest-growing economies in the region and in the world in 2019-2020.
The briefing also discussed about the provisions of the newly enacted Islamic Banking Law (RA 11439), policy improvements and initiatives on the supervision of the financial sector, and developments in the monetary and external sectors.