An Act Providing For A Comprehensive Revision Of The Charter Of The Bangko Sentral Ng Pilipinas (BSP) By Amending Republic Act No. 7653, Otherwise Known As “The New Central Bank Act”

• Establishes a mechanism for the full payment of the national government’s unpaid subscription to the BSP as mandated by R.A. No. 7653.
• Expands the BSP’s supervisory powers to include credit card companies, e-money issuers, remittance agents and institutions performing similar functions.
• Incorporates the promotion of full employment as one of two primary objectives of the BSP in its formulation of monetary policy, along with maintaining price stability (Sen. Recto amendment)
• Deletes the provision which requires the confirmation of the BSP Governor by the Commission on Appointments.
• Proposes that no member of the Monetary Board, including the BSP governor and vice governors, shall be elected as director, or employed as officer or employee, or hired as consultant, adviser, lawyer, or in any other capacity in institutions regulated by the BSP three (3) years after their term.
• Allows the Monetary Board to conduct a meeting through video conferencing or teleconferencing, as required by circumstances.
• Increases the number of deputy governors from three (3) to five (5).
• Provides for semi-annual appearances of BSP Governor before key committees in both houses of Congress.
• Undertakes corrective actions on entities performing quasi-bank functions when they are capital deficient and when they fail to comply with minimum capital requirements
• Authorizes the conservator to appoint a core group of professionals to assist him in the performance of his powers and duties
• Amends the proceedings in receivership and liquidation by including a notification in writing by the Monetary Board to the Board of Directors of the former’s findings on the status of the banks/quasi-banks, and authorizing the Monetary Board to direct the PDIC to proceed with the liquidation of the closed banking institution
• Adds non-bank financial institutions to the list of those which may be placed under receivership
• Provides for the immediate transfer or disposal of assets of the closed institution by its receiver in order to rehabilitate and restore the former’s operations for safety to its creditors
• Adds a new provision for the licensing and establishment of bridge banks which will serve as temporary banks operating to acquire assets and assume liabilities of a failed bank
• Adds a new provision for the formulation of rules and regulations for the extension of rediscounting or other similar facilities to Islamic banks
• Financial transactions of the BSP arising from its open market operations shall be exempt from all national and local taxes
• The importation of all supplies by the BSP for bank note production, minting of coins, metal refining & other security printing operations & transport of currency shall be exempt from all Customs duties
• Adds a new provision which subjects BSP’s acquisitions to procurement laws

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Legislative History