Escolar Documentos
Profissional Documentos
Cultura Documentos
7653)
(GOROSPE, LOPEZ, GALANZA, MATIENZO, BALLOS)
1. State Policies
The policy of the State expressed in the New Centra Bank Act
The policy is to maintain a central monetary authority that shall:
1. function and operate as an independent and accountable body in the
discharge of its responsibilities concerning money, banking, and credit
2. enjoy fiscal and administrative autonomy
2. Creation of the Bangko Sentral ng Pilipinas (BSP)
There is hereby established an independent central monetary authority,
which shall be a body corporate known as the BangkoSentral ng Pilipinas,
hereafter referred to as the BangkoSentral
The capital of the Bangko Sentral shall be Fifty billion pesos
(P50,000,000,000), to be fully subscribed by the Government of the Republic,
hereafter referred to as the Government, Ten billion pesos (P10,000,000,000)
of which shall be fully paid for by the Government upon the effectivity of this
Act and the balance to be paid for within a period of two (2) years from the
effectivity of this Act in such manner and form as the Government, through
the Secretary of Finance and the Secretary of Budget and Management, may
thereafter determine.
3. Responsibility and Primary Objective
The responsibilities of the BSP
1. To provide policy directions in the areas of money, banking and credit.
2. To supervise the operations of banks.
3. To regulate the operations of finance companies and non-bank financial
institutions performing quasi-judicial functions and institutions performing
similar functions.
Primary objectives of the BSP
1. To maintain price stability conducive to a balanced and sustainable growth
of the economy.
2. To promote and maintain monetary stability and the convertibility of the
peso.
4. Monetary BoardPowers and Functions
The Monetary Board and its composition
The Monetary Board is the body by which the powers and functions of the
BSP. It is composed of seven (7) members appointed by the President of the
Philippines for a term of six (6) days years: Governor of the Bangko Sentral,
as Chairman; A member of the Cabinet to be designated by the President;
and Five (5) members from the private sector, all of whom shall serve fulltime.
Functions:
Section 15. Exercise of Authority. - In the exercise of its authority, the
Monetary Board shall:
(a) issue rules and regulations it considers
1. 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 a liquidation plan adopted by the
Philippine Deposit Insurance Corporation for general application to all
closed banks. In case of quasi-banks, the liquidation plan shall be adopted
by the Monetary Board. Upon acquiring jurisdiction, the court shall, upon
motion by the receiver after due notice, adjudicate disputed claims
against the institution, assist the enforcement of individual liabilities of the
stockholders, directors and officers, and decide on other issues as may be
material to implement the liquidation plan adopted. The receiver shall pay
the cost of the proceedings from the assets of the institution.
2. convert the assets of the institutions to money, dispose of the same to
creditors and other parties, for the purpose of paying the debts of such
institution in accordance with the rules on concurrence and preference of
credit under the Civil Code of the Philippines and he may, in the name of
the institution, and with the assistance of counsel as he may retain,
institute such actions as maybe necessary to collect and recover accounts
and assets of, or defend any action against, the institution. The assets of
an institution under receivership or liquidation shall be deemed in
custodia legis in the hands of the receiver and shall, from the moment the
institution was placed under such receivership or liquidation, be exempt
from any order of garnishment, levy, attachment, or execution .
6. How the BSP Handles Exchange Crisis
a. Legal Tender Power
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
Such currency which in a given jurisdiction can be used for the payment of
debts, public or private, and which cannot be refused by the creditor. All
notes and coins issued by the BangkoSentral 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: Provided. However, That
unless otherwise fixed by the Monetary Board, coins shall be legal tender
in amounts not exceeding Fifty pesos (P50.00) for denominations of
Twenty-five centavos and above, and in amounts not exceeding Twenty
pesos (P20.00) for denominations of Ten centavos or less. (Sec 52)
b. Rate of Exchange
SEC. 74. Exchange Rates. _ The Monetary Board shall