Comparison of Republic Act No. 7653 (The New Central Bank Act) and Republic Act No.

11211
(Amending Republic Act No. 7653)

RA 7653 RA 11211
SECTION 2. Creation of the Bangko SEC. 2. Creation of the Bangko Sentral. —
Sentral. — There is hereby established an There is hereby established an independent
independent central monetary authority, central monetary authority, which shall be a
which shall be a body corporate known as body corporate known as the Bangko Sentral
the Bangko Sentral ng Pilipinas, hereafter ng Pilipinas, hereafter referred to as
referred to as the Bangko Sentral. the Bangko Sentral.
The capital of the Bangko Sentral shall be "The capital of the Bangko Sentral shall be
Fifty billion pesos (P50,000,000,000), to be Two hundred billion pesos (P200,000,000,000),
fully subscribed by the Government of the to be fully subscribed by the Government of
Republic, hereafter referred to as the the Republic of the Philippines, hereafter
Government, Ten billion pesos referred to as the Government: Provided, That
(P10,000,000,000) of which shall be fully the increase in capitalization shall be funded
paid for by the Government upon the solely from the declared dividends of
effectivity of this Act and the balance to be the Bangko Sentral in favor of the National
paid for within a period of two (2) years from Government. For this purpose, any and all
the effectivity of this Act in such manner and declared dividends of the Bangko Sentral in
form as the Government, through the favor of the National Government shall be
Secretary of Finance and Secretary of Budget deposited in a special account in the General
and Management, may thereafter determine. Fund, and earmarked for the payment
of Bangko Sentral's increase in capitalization.
Such payment shall be released and disbursed
immediately and shall continue until the
increase in capitalization has been fully paid.

SECTION 3. Responsibility and Primary SEC. 3. Responsibility and Primary

Objective. — The Bangko Sentral shall provide Objective. — The Bangko Sentral shall provide
policy directions in the areas of money, policy directions in the areas of money,
banking, and credit. It shall have supervision banking, and credit. It shall have supervision
over the operations of banks and exercise over the operations of banks and exercise such
such regulatory powers as provided in this regulatory and examination powers as
Act and other pertinent laws over the provided in this Act and other pertinent laws
operations of finance companies and non- over the quasi-banking operations of non-
bank financial institutions performing quasi- bank financial institutions. As may be
banking functions, hereafter referred to as determined by the Monetary Board, it shall
quasi-banks, and institutions performing likewise exercise regulatory and examination
similar functions. powers over money service businesses, credit
granting businesses, and payment system
The primary objective of the Bangko
operators. The Monetary Board is hereby
Sentral is to maintain price ability conducive
empowered to authorize entities or persons to
to a balanced and sustainable growth of the
engage in money service businesses.
economy. It shall also promote and maintain
monetary stability and the convertibility of "The primary objective of the Bangko
the peso. Sentral is to maintain price stability conducive
 to a balanced and sustainable growth of the
economy and employment. It shall also
promote and maintain monetary stability and
the convertibility of the peso.
"The Bangko Sentral shall promote
financial stability and closely work with the
National Government, including, but not
limited to, the Department of Finance,
Securities and Exchange Commission, the
Insurance Commission, and the Philippine
Deposit Insurance Corporation.
"The Bangko Sentral shall oversee the
payment and settlement systems in the
Philippines, including critical financial market
infrastructures, in order to promote sound and
prudent practices consistent with the
maintenance of financial stability.
"In the attainment of its objectives,
the Bangko Sentral shall promote broad and
convenient access to high quality financial
services and consider the interest of the
general public."

SECTION 11. Meetings. — The Monetary "SEC. 11. Meetings. — The Monetary
Board shall meet at least once a week. The Board shall meet at least once a week. The
Board may be called to a meeting by the Board may be called to a meeting by the
Governor of the Bangko Sentral or by two (2) Governor of the Bangko Sentral or by two (2)
other members of the Board. other members of the Board.
The presence of four (4) members shall "The presence of four (4) members shall
constitute a quorum: Provided, That in all constitute a quorum: Provided, That in all cases
cases the Governor or his duly designated the Governor or his duly designated alternate
alternate shall be among the four (4). shall be among the four (4) members.
Unless otherwise provided in this Act, all "Unless otherwise provided in this Act, all
decisions of the Monetary Board shall require decisions of the Monetary Board shall require
the concurrence of at least four (4) members. the concurrence of at least four (4) members.
The Bangko Sentral shall maintain and "The Bangko Sentral shall maintain and
preserve a complete record of the preserve a complete record of the proceedings
proceedings and deliberations of the and deliberations of the Monetary Board,
Monetary Board, including the tapes and including the tapes and transcripts of the
transcripts of the stenographic notes, either stenographic notes, either in their original
in their original form or in microfilm. form or in microfilm.
"The meetings of the Monetary Board may
be conducted through modern technologies
such as, but not limited to, teleconferencing
 and videoconferencing."

SECTION 15. Exercise of Authority. — In "SEC. 15. Exercise of Authority. — In the

the exercise of its authority, the Monetary exercise of its authority, the Monetary Board
Board shall: shall:
"xxx xxx xxx "xxx xxx xxx
(e) indemnify its members and other "(e) indemnify its members and other
officials of the Bangko Sentral, officials of the Bangko Sentral,
including personnel of the including personnel of the
departments performing supervision departments performing supervision
and examination functions against all and examination functions against all
costs and expenses reasonably costs and expenses reasonably
incurred by such persons in incurred by such persons in
connection with any civil or criminal connection with any civil or criminal
action, suit or proceedings to which action, suit or proceedings to which
he may be, or is, made a party by he may be, or is, made a party by
reason of the performance of his reason of the performance of his
functions or duties, unless he is finally functions or duties, unless he is finally
adjudged in such action or proceeding adjudged in such action or proceeding
to be liable for negligence or to be liable for willful violation of this
misconduct. Act, performed in evident bad faith or
with gross negligence.
In the event of a settlement or
compromise, indemnification shall be "In the event of a settlement or
provided only in connection with such compromise, indemnification shall be
matters covered by the settlement as provided only in connection with such
to which the Bangko Sentral is matters covered by the settlement as
advised by external counsel that the to which the Bangko Sentral is advised
person to be indemnified did not by external counsel that the person to
commit any negligence or be indemnified did not commit willful
misconduct. violation of this Act, performed in
evident bad faith or with gross
The costs and expenses incurred in
negligence.
defending the aforementioned action,
suit or proceeding may be paid by "The costs and expenses incurred in
the Bangko Sentral in advance of the defending the aforementioned action,
final disposition of such action, suit or suit or proceeding may be paid by
proceeding upon receipt of an the Bangko Sentral in advance of the
undertaking by or on behalf of the final disposition of such action, suit or
member, officer, or employee to proceeding upon receipt of an
repay the amount advanced should it undertaking by or on behalf of the
ultimately be determined by the member, officer, or employee to
Monetary Board that he is not repay the amount advanced should it
entitled to be indemnified as provided ultimately be determined by the
in this subsection. Monetary Board that he is not entitled
to be indemnified as provided in this
subsection."
 SECTION 16. Responsibility. — Members "SEC. 16. Responsibility. — The general
of the Monetary Board, officials, examiners, rule and the exception therefrom on the
and employees of the Bangko Sentral who liability of public officers as provided in
willfully violate this Act or who are guilty of Sections 38 and 39 of Chapter 9, Book 1 of the
negligence, abuses or acts of malfeasance or Revised Administrative Code of 1987 shall
misfeasance or fail to exercise extraordinary apply to the members of the Monetary Board
diligence in the performance of his duties and other personnel of the Bangko Sentral.
shall be held liable for any loss or injury
"Similar responsibility shall apply to
suffered by the Bangko Sentral or other
members of the Monetary Board, and other
banking institutions as a result of such
personnel of the Bangko Sentral for: (1) the
violation, negligence, abuse, malfeasance,
disclosure of any information of a confidential
misfeasance or failure to exercise
nature, or any information on the discussions
extraordinary diligence.
or resolutions of the Monetary Board, or
Similar responsibility shall apply to about the confidential operations of
members, officers, and employees of the Bangko Sentral, unless the disclosure is in
the Bangko Sentral for: (1) the disclosure of connection with the performance of official
any information of a confidential nature, or functions with the Bangko Sentral, or is with
any information on the discussions or prior authorization of the Monetary Board or
resolutions of the Monetary Board, or about the Governor; or (2) the use of such
the confidential operations of the Bangko information for personal gain or to the
Sentral, unless the disclosure is in detriment of the Government, the Bangko
connection with the performance of official Sentral or third parties: Provided, however,
functions with the Bangko Sentral, or is with That any data or information required to be
prior authorization of the Monetary Board or submitted to the President and/or the
the Governor; or (2) the use of such Congress, or to be published under the
information for personal gain or to the provisions of this Act shall not be considered
detriment of the Government, the Bangko confidential.
Sentral or third parties: Provided, however,
"Unless the actions or omissions of
That any data or information required to be
the Bangko Sentral, members of the Monetary
submitted to the President and/or the
Board and its other personnel are finally
Congress, or to be published under the
adjudged to be in willful violation of this Act,
provisions of this Act shall not be considered
performed in evident bad faith or with gross
confidential.
negligence, they are held free and harmless to
the fullest extent permitted by law from any
liability, and they shall be indemnified for any
and all liabilities, losses, claims, demands,
damages, deficiencies, costs and expenses of
whatsoever kind and nature that may arise in
connection with the exercise of their powers
and performance of their duties and
functions."

SECTION 21. Deputy Governors. — The "SEC. 21. Deputy Governors. — The
Governor of the Bangko Sentral, with the Governor of the Bangko Sentral, with the
approval of the Monetary Board, shall approval of the Monetary Board, shall appoint
appoint not more than three (3) Deputy not more than five (5) Deputy Governors who
Governors who shall perform duties as may shall perform duties as may be assigned to
be assigned to them by the Governor and the them by the Governor and the Board.
Board.
"In the absence of the Governor, a Deputy
In the absence of the Governor, a Deputy Governor designated by the Governor shall act
Governor designated by the Governor shall as chief executive of the Bangko Sentral and
act as chief executive of the Bangko shall exercise the powers and perform the
Sentral and shall exercise the powers and duties of the Governor. Whenever the
perform the duties of the Governor. Governor is unable to attend meetings of
Whenever the Governor is unable to attend government boards or councils in which he is
meetings of government boards or councils in an ex officio member pursuant to provisions of
which he is an ex officio member pursuant to special laws, a Deputy Governor as may be
provisions of special laws, a Deputy Governor designated by the Governor shall be vested
as may be designated by the Governor shall with authority to participate and exercise the
be vested with authority to participate and right to vote in such meetings."
exercise the right to vote in such meetings.

SECTION 23. Authority to Obtain Data "SEC. 23. Authority to Obtain Data and
and Information. — The Bangko Sentral shall Information. — The Bangko Sentral shall have
have the authority to request from the authority to require from any person or
government offices and instrumentalities, or entity, including government offices and
government-owned or -controlled instrumentalities, or government-owned or -
corporations, any data which it may require controlled corporations, any data, for
for the proper discharge of its functions and statistical and policy development purposes in
responsibilities. The Bangko Sentral through relation to the proper discharge of its functions
the Governor or in his absence, a duly and responsibilities: Provided, That
authorized representative shall have the disaggregated data gathered are subject to
power to issue a subpoena for the production prevailing confidentiality laws. The Bangko
of the books and records for the aforesaid Sentral through the Governor or in his
purpose. Those who refuse absence, a duly authorized representative shall
the subpoena without justifiable cause, or have the power to issue a subpoena for the
who refuse to supply the bank with data production of the books and records for the
requested or required, shall be subject to aforesaid purpose. Those who refuse
punishment for contempt in accordance with the subpoena without justifiable cause, or who
the provisions of the Rules of Court. refuse to supply the Bangko Sentral with data
required, shall be subject to punishment for
Data on individual firms, other than
contempt in accordance with the provisions of
banks, gathered by the Department of
the Rules of Court.
Economic Research and other departments or
units of the Bangko Sentral shall not be made "The authority of the Bangko Sentral to
available to any person or entity outside of require data from banks shall continue to be
the Bangko Sentral whether public or private exercised pursuant to its supervisory powers
except under order of the court or under such set forth in this Act and other applicable laws.
conditions as may be prescribed by the
"Data on individuals and firms, other than
Monetary Board: Provided, however, That the
banks, gathered by the Bangko Sentral shall
collective data on firms may be released to
not be made available to any person or entity
interested persons or entities: Provided,
outside of the Bangko Sentral whether public
finally, That in the case of data on banks, the
or private except under order of the court or
provisions of Section 27 of this Act shall
apply. under such conditions as may be prescribed by
the Monetary Board: Provided, however, That
the collective data on firms may be released to
interested persons or entities: Provided, finally,
That in the case of data on banks, the
provisions of Section 27 of this Act shall apply."

SECTION 25. Supervision and "SEC. 25. Supervision and Examination. —

Examination. — The Bangko Sentral shall The Bangko Sentral shall have supervision
have supervision over, and conduct periodic over, and conduct regular or special
or special examinations of, banking examinations of banking institutions and quasi-
institutions and quasi-banks, including their banks, including their subsidiaries and affiliates
subsidiaries and affiliates engaged in allied engaged in allied activities.
activities.
"For purposes of this section, a subsidiary
For purposes of this section, a subsidiary means a corporation more than fifty percent
means a corporation more than fifty percent (50%) of the voting stock of which is directly or
(50%) of the voting stock of which is owned indirectly owned, controlled or held with
by a bank or quasi-bank and an affiliate power to vote by a bank or quasi-bank and an
means a corporation the voting stock of affiliate means a corporation the voting stock
which, to the extent of fifty percent (50%) or of which, to the extent of fifty percent (50%) or
less, is owned by a bank or quasi-bank or less, is owned by a bank or quasi-bank or
which is related or linked to such institution which is related or linked directly or indirectly
or intermediary through common to such institution or intermediary through
stockholders or such other factors as may be common stockholders or such other factors as
determined by the Monetary Board. may be determined by the Monetary Board.
The department heads and the examiners "The Bangko Sentral shall have regulatory
of the supervising and/or examining authority over, and conduct regular or special
departments are hereby authorized to examinations of, entities which under this Act
administer oaths to any director, officer, or or by special laws are subject to its jurisdiction.
employee of any institution under their
"The Bangko Sentral shall establish a
respective supervisions or subject to their
mechanism for issues arising from bank
examination and to compel the presentation
examinations. It shall be independent and
of all books, documents, papers or records
reports directly to the Monetary Board,
necessary in their judgment to ascertain the
without prejudice to the authority of
facts relative to the true condition of any
the Bangko Sentral and its Monetary Board to
institution as well as the books and records of
take enforcement and supervisory actions
persons and entities relative to or in
against supervised entities.
connection with the operations, activities or
transactions of the institution under "The department heads and the examiners
examination, subject to the provision of of the supervising and/or examining
existing laws protecting or safeguarding the departments are hereby authorized to
secrecy or confidentiality of bank deposits as administer oaths to any director, officer, or
well as investments of private persons, employee of any institution under their
natural or juridical, in debt instruments issued respective supervision or subject to their
by the Government. examination, and to compel the presentation
of all books, documents, papers or records
No restraining order or injunction shall be
necessary in their judgment to ascertain the
issued by the court enjoining the Bangko facts relative to the true condition of any
Sentral from examining any institution institution as well as the books and records of
subject to supervision or examination by persons and entities relative to or in
the Bangko Sentral, unless there is convincing connection with the operations, activities or
proof that the action of the Bangko Sentral is transactions of the institution under
plainly arbitrary and made in bad faith and examination, subject to the provision of
the petitioner or plaintiff files with the clerk existing laws protecting or safeguarding the
or judge of the court in which the action is secrecy or confidentiality of bank deposits as
pending a bond executed in favor of well as investments of private persons, natural
the Bangko Sentral, in an amount to be fixed or juridical, in debt instruments issued by the
by the court. The provisions of Rule 58 of the Government.
New Rules of Court insofar as they are
"No restraining order or injunction shall be
applicable and not inconsistent with the
issued by the court enjoining the Bangko
provisions of this section shall govern the
Sentral from examining any institution subject
issuance and dissolution of the restraining
to supervision or examination by the Bangko
order or injunction contemplated in this
Sentral, unless there is convincing proof that
section.
the action of the Bangko Sentral is plainly
arbitrary and made in bad faith and the
petitioner or plaintiff files with the clerk or
judge of the court in which the action is
pending a bond executed in favor of
the Bangko Sentral, in an amount to be fixed
by the court. The provisions of Rule 58 of the
New Rules of Court insofar as they are
applicable and not inconsistent with the
provisions of this section shall govern the
issuance and dissolution of the restraining
order or injunction contemplated in this
section."

SECTION 27. Prohibitions. — In addition "SEC. 27. Prohibitions. — In addition to the

to the prohibitions found in Republic Act Nos. prohibitions found in Republic Act Nos. 3019
3019 and 6713, personnel of the Bangko and 6713, personnel of the Bangko Sentral are
Sentral are hereby prohibited from: hereby prohibited from:
"xxx xxx xxx "xxx xxx xxx
(d) borrowing from any institution "(d) borrowing from any institution subject
subject to supervision or to supervision or examination by
examination by the Bangko the Bangko Sentral unless said
Sentral shall be prohibited unless borrowing is transacted on an arm's
said borrowings are adequately length basis, fully disclosed to the
secured, fully disclosed to the Monetary Board, and shall be subject
Monetary Board, and shall be to such rules and regulations as the
subject to such further rules and Monetary Board may prescribe."
regulations as the Monetary Board
may prescribe: Provided, however,
 That personnel of the supervising
and examining departments are
prohibited from borrowing from a
bank under their supervision or
examination.

SECTION 28. Examination and Fees. — "SEC. 28. Examination and Fees. — The
The supervising and examining department supervising and examining department head,
head, personally or by deputy, shall examine personally or by deputy, shall examine the
the books of every banking institution once in operations of every bank and quasi-bank,
every twelve (12) months, and at such other including their subsidiaries and affiliates
times as the Monetary Board by an engaged in allied activities, and other entities
affirmative vote of five (5) members, may which under this Act or special laws are subject
deem expedient and to make a report on the to Bangko Sentral supervision, in accordance
same to the Monetary Board: Provided, That with the guidelines set by the Monetary Board
there shall be an interval of at least twelve taking into consideration sound and prudent
(12) months between annual examinations. practices: Provided, That there shall be an
interval of at least twelve (12) months
The bank concerned shall afford to the
between regular examinations: Provided,
head of the appropriate supervising and
further, That the Monetary Board, by an
examining departments and to his authorized
affirmative vote of at least five (5) members,
deputies full opportunity to examine its
may authorize a special examination if the
books, cash and available assets and general
circumstances warrant.
condition at any time during banking hours
when requested to do so by the Bangko "The institution concerned shall afford to
Sentral: Provided, however, That none of the the head of the appropriate supervising and
reports and other papers relative to such examining departments and to his authorized
examinations shall be open to inspection by deputies full opportunity to examine its books
the public except insofar as such publicity is and records, cash and assets and general
incidental to the proceedings hereinafter condition and review its systems and
authorized or is necessary for the prosecution procedures at any time during business hours
of violations in connection with the business when requested to do so by the Bangko
of such institutions. Sentral: Provided, however, That none of the
reports and other papers relative to such
Banking and quasi-banking institutions
examinations shall be open to inspection by
which are subject to examination by
the public except insofar as such publicity is
the Bangko Sentral shall pay to the Bangko
incidental to the proceedings hereinafter
Sentral, within the first thirty (30) days of
authorized or is necessary for the prosecution
each year, an annual fee in an amount equal
of violations in connection with the business of
to a percentage as may be prescribed by the
such institutions.
Monetary Board of its average total assets
during the preceding years as shown on its "Supervised institutions shall pay to
end-of-month balance sheets, after deducting the Bangko Sentral, no later than May 31 of
cash on hand and amounts due from banks, each year, an annual supervision fee as may be
including the Bangko Sentral and banks prescribed by the Monetary Board. In
abroad. determining the amount of the annual
supervision fee, the Monetary Board shall
consider the costs of supervision."
 "SEC. 28-A. Bangko Sentral Coordination.
— The suspension or revocation of any
government license necessary for the
operation of Bangko Sentral-supervised entity
must be done only with prior consultation with
the Bangko Sentral."

SECTION 30. Proceedings in "SEC. 30. Proceedings in Receivership and

Receivership and Liquidation. — Whenever, Liquidation. — Whenever, upon report of the
upon report of the head of the supervising or head of the supervising or examining
examining department, the Monetary Board department, the Monetary Board finds that a
finds that a bank or quasi-bank: bank or quasi-bank:
(a) is unable to pay its liabilities as they "(a) has notified the Bangko Sentral or
become due to the ordinary course of publicly announced a unilateral
business: Provided, That this shall not closure, or has been dormant for at
include inability to pay caused by least sixty (60) days or in any manner
extraordinary demands induced by has suspended the payment of its
financial panic in the banking deposit/deposit substitute liabilities, or
community; is unable to pay its liabilities as they
become due in the ordinary course of
(b) has insufficient realizable assets, as
business: Provided, That this shall not
determined by the Bangko Sentral, to
include inability to pay caused by
meet its liabilities; or
extraordinary demands induced by
(c) cannot continue in business without financial panic in the banking
involving probable losses to its community;
depositors or creditors; or
"(b) has insufficient realizable assets, as
(d) has willfully violated a cease and determined by the Bangko Sentral, to
desist order under Section 37 that has meet its liabilities; or
become final, involving acts or "(c) cannot continue in business without
transactions which amount to fraud involving probable losses to its
or a dissipation of the assets of the depositors or creditors; or
institution; in which cases, the
Monetary Board may summarily and "(d) has willfully violated a cease and desist
without need for prior hearing forbid order under Section 37 of this Act that
the institution from doing business in has become final, involving acts or
the Philippines and designate the transactions which amount to fraud or
Philippine Deposit Insurance a dissipation of the assets of the
Corporation as receiver of the institution; in which cases, the
banking institution. Monetary Board may summarily and
without need for prior hearing forbid
For a quasi-bank, any person of the institution from doing business in
recognized competence in banking or finance the Philippines and designate the
may be designed as receiver. cd i Philippine Deposit Insurance
The receiver shall immediately gather and Corporation (PDIC) as receiver in the
take charge of all the assets and liabilities of case of banks and direct the PDIC to
proceed with the liquidation of the
the institution, administer the same for the closed bank pursuant to this section
benefit of its creditors, and exercise the and the relevant provisions of Republic
general powers of a receiver under the Act No. 3591, as amended. The
Revised Rules of Court but shall not, with the Monetary Board shall notify in writing,
exception of administrative expenditures, pay through the receiver, the board of
or commit any act that will involve the directors of the closed bank of its
transfer or disposition of any asset of the decision.
institution: Provided, That the receiver may
"The actions of the Monetary Board taken
deposit or place the funds of the institution in
under this section or under Section 29 of this
non-speculative investments. The receiver
Act shall be final and executory, and may not
shall determine as soon as possible, but not
be restrained or set aside by the court except
later than ninety (90) days from take-over,
on petition for certiorari on the ground that
whether the institution may be rehabilitated
the action taken was in excess of jurisdiction or
or otherwise placed in such a condition so
with such grave abuse of discretion as to
that it may be permitted to resume business
amount to lack or excess of jurisdiction. The
with safety to its depositors and creditors and
petition for certiorari may only be filed by the
the general public: Provided, That any
stockholders of record representing the
determination for the resumption of business
majority of the capital stock within ten (10)
of the institution shall be subject to prior
days from receipt by the board of directors of
approval of the Monetary Board.
the institution of the order directing
If the receiver determines that the receivership, liquidation or conservatorship.
institution cannot be rehabilitated or The designation of a conservator under Section
permitted to resume business in accordance 29 of this Act or the appointment of a receiver
with the next preceding paragraph, the under this section shall be vested exclusively
Monetary Board shall notify in writing the with the Monetary Board. Furthermore, the
board of directors of its findings and direct designation of a conservator is not a
the receiver to proceed with the liquidation precondition to the designation of a receiver.
of the institution. The receiver shall:
"The authority of the Monetary Board to
(1) file ex parte with the proper regional summarily and without need for prior hearing
trial court, and without forbid the bank or quasi-bank from doing
requirement of prior notice or any business in the Philippines as provided above
other action, a petition for may also be exercised over non-stock savings
assistance in the liquidation of the and loan associations, based on the same
institution pursuant to a liquidation applicable grounds. For quasi-banks and non-
plan adopted by the Philippine stock savings and loan associations, any person
Deposit Insurance Corporation for of recognized competence in banking, credit or
general application to all closed finance may be designated by the Bangko
banks. In case of quasi-banks, the Sentral as a receiver."
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 institution
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
may be 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.
The actions of the Monetary Board taken
under this section or under Section 29 of this
Act shall be final and executory, and may not
be restrained or set aside by the court except
on petition for certiorari on the ground that
the action taken was in excess of jurisdiction
or with such grave abuse of discretion as to
amount to lack or excess of jurisdiction. The
petition for certiorari may only be filed by the
stockholders of record representing the
majority of the capital stock within ten (10)
days from receipt by the board of directors of
the institution of the order directing
receivership, liquidation or conservatorship.
The designation of a conservator under
Section 29 of this Act or the appointment of a
receiver under this section shall be vested
exclusively with the Monetary Board.
Furthermore, the designation of a
conservator is not a precondition to the
designation of a receiver.

SECTION 31. Distribution of Assets. — SECTION 14. Section 31 of Republic Act No.
In case of liquidation of a bank or quasi-bank, 7653 is hereby deleted.
after payment of the cost of proceedings,
including reasonable expenses and fees of the
receiver to be allowed by the court, the
receiver shall pay the debts of such
institution, under order of the court, in
accordance with the rules on concurrence
and preference of credit as provided in the
Civil Code.

SECTION 32. Disposition of Revenues and

SECTION 15. Section 32 of Republic Act No.
Earnings. — All revenues and earnings realized
7653 is hereby deleted.
by the receiver in winding up the affairs and
administering the assets of any bank or quasi-
bank within the purview of this Act shall be
used to pay the costs, fees and expenses
mentioned in the preceding section, salaries of
such personnel whose employment is rendered
necessary in the discharge of the liquidation
together with other additional expenses caused
thereby. The balance of revenues and earnings,
after the payment of all said expenses, shall
form part of the assets available for payment to
creditors.
SECTION 34. Refusal to Make Reports or "SEC. 34. Refusal to Make Reports or
Permit Examination. — Any officer, owner, Permit Examination. — Any officer, owner,
agent, manager, director or officer-in-charge agent, manager, director or officer-in-charge of
of any institution subject to the supervision or any institution who, being required in writing
examination by the Bangko Sentral within the by the Monetary Board or by the head of the
purview of this Act who, being required in supervising and examining department within
writing by the Monetary Board or by the head the purview of this Act and relevant laws
of the supervising and examining department willfully refuses to file the required report or
willfully refuses to file the required report or permit any lawful examination into the affairs
permit any lawful examination into the affairs of such institution shall be punished by a fine
of such institution shall be punished by a fine of not less than Fifty thousand pesos (P50,000)
of not less than Fifty thousand pesos nor more than Two million pesos (P2,000,000)
(P50,000) nor more than One hundred or by imprisonment of not less than one (1)
thousand pesos (P100,000) or by year nor more than five (5) years, or both, at
imprisonment of not less than one (1) year the discretion of the court.
nor more than five (5) years, or both, in the
discretion of the court. "This shall also apply to the officer, owner,
agent, manager, director or officer-in-charge of
the affiliate company/ies whose transactions
are subject to examination under this Act."
SECTION 35. False Statement. — The "SEC. 35. False Statement. — The willful
willful making of a false or misleading making of a false or misleading statement on a
statement on a material fact to the Monetary material fact to the Monetary Board or to the
Board or to the examiners of the Bangko examiners of the Bangko Sentral shall be
Sentral shall be punished by a fine of not less punished by a fine of not less than One
than One hundred thousand pesos (P100,000) hundred thousand pesos (P100,000) nor more
nor more than Two hundred thousand pesos than Two million pesos (P2,000,000), or by
(P200,000), or by imprisonment of not more imprisonment of not more than five (5) years,
than five (5) years, or both, at the discretion or both, at the discretion of the court."
of the court.
SECTION 36. Proceedings Upon Violation "SEC. 36. Proceedings upon Violation of
of This Act and Other Banking Laws, Rules, This Act and Other Banking Laws, Rules,
Regulations, Orders or Instructions. — Regulations, Orders or Instructions. —
Whenever a bank or quasi-bank, or whenever Whenever a bank, quasi-bank, including their
any person or entity willfully violates this Act subsidiaries and affiliates engaged in allied
or other pertinent banking laws being activities or other entity which under this Act
enforced or implemented by the Bangko or special laws is subject to Bangko
Sentral or any order, instruction, rule or Sentral supervision or whenever any person or
regulation issued by the Monetary Board, the entity willfully violates this Act or other
person or persons responsible for such pertinent banking laws being enforced or
violation shall unless otherwise provided in implemented by the Bangko Sentral or any
this Act be punished by a fine of not less than order, instruction, rule or regulation issued by
Fifty thousand pesos (P50,000) nor more than the Monetary Board, the person or persons
Two hundred thousand pesos (P200,000) or responsible for such violation shall unless
by imprisonment of not less than two (2) otherwise provided in this Act be punished by a
years nor more than ten (10) years, or both, fine of not less than Fifty thousand pesos
at the discretion of the court. (P50,000) nor more than Two million pesos
(P2,000.000) or by imprisonment of not less
Whenever a bank or quasi-bank persists
than two (2) years nor more than ten (10)
in carrying on its business in an unlawful or
years, or both, at the discretion of the court.
unsafe manner, the Board may, without
prejudice to the penalties provided in the "Whenever an entity under Bangko
preceding paragraph of this section and the Sentral supervision persists in carrying on its
administrative sanctions provided in Section business in an unlawful or unsafe manner, the
37 of this Act, take action under Section 30 of Board may, without prejudice to the penalties
this Act. provided in the preceding paragraph of this
section and the administrative sanctions
provided in Section 37 of this Act, take action
under Section 30 of this Act.
"The Bangko Sentral may grant informer's
reward to any person, except an officer or
employee of the Bangko Sentral or of any
intelligence or law enforcement agency,
 including the relatives of such officer or
employee within the fourth degree of
consanguinity or affinity, who voluntarily give
definite information not yet in the possession
of the Bangko Sentral leading to the: (a) arrest
of bank directors or officers and/or BSP
personnel for violation of this Act or any
banking and other laws implemented or
enforced by the Bangko Sentral, or for
violation of other penal laws committed in
connection with their employment or
functions; or (b) filing of criminal charges
against any person for violation of Section 50
of this Act.
"The Monetary Board is hereby authorized
to promulgate the implementing guidelines for
the grant of informer's reward, which in no
case shall exceed One million pesos
(P1,000,000). Said guidelines may provide for
additional qualifications and disqualifications
of informants as well as the form and minimum
content of the information given.
"The cash reward of informers shall be
subject to applicable withholding taxes."

SECTION 37. Administrative Sanctions on "SEC. 37. Administrative Sanctions on

Banks and Quasi-banks. — Without prejudice Supervised Entities. — The imposition of
to the criminal sanctions against the culpable administrative sanctions shall be fair,
persons provided in Sections 34, 35, and 36 of consistent and reasonable. Without prejudice
this Act, the Monetary Board may, at its to the criminal sanctions against the culpable
discretion, impose upon any bank or quasi- persons provided in Sections 34, 35, and 36 of
bank, their directors and/or officers, for any this Act, the Monetary Board may, at its
willful violation of its charter or by-laws, discretion, impose upon any bank, quasi-bank,
willful delay in the submission of reports or including their subsidiaries and affiliates
publications thereof as required by law, rules engaged in allied activities, or other entity
and regulations; any refusal to permit which under this Act or special laws are subject
examination into the affairs of the institution; to the Bangko Sentral supervision, and/or their
any willful making of a false or misleading directors, officers or employees, for any willful
statement to the Board or the appropriate violation of its charter or bylaws, willful delay
supervising and examining department or its in the submission of reports or publications
examiners; any willful failure or refusal to thereof as required by law, rules and
comply with, or violation of, any banking law regulations; any refusal to permit examination
or any order, instruction or regulation issued into the affairs of the institution; any willful
by the Monetary Board, or any order, making of a false or misleading statement to
instruction or ruling by the Governor; or any the Board or the appropriate supervising and
commission or irregularities, and/or examining department or its examiners; any
conducting business in an unsafe or unsound willful failure or refusal to comply with, or
manner as may be determined by the violation of, any banking law or any order,
Monetary Board, the following administrative instruction or regulation issued by the
sanctions, whenever applicable: Monetary Board, or any order, instruction or
ruling by the Governor; or any commission of
(a) fines in amounts as may be
irregularities, and/or conducting business in an
determined by the Monetary Board
unsafe or unsound manner as may be
to be appropriate, but in no case to
determined by the Monetary Board, the
exceed Thirty thousand pesos
following administrative sanctions, whenever
(P30,000) a day for each violation,
applicable:
taking into consideration the
attendant circumstances, such as "(a) fines in amounts as may be
the nature and gravity of the determined by the Monetary Board to
violation or irregularity and the size be appropriate, but in no case to
of the bank or quasi-bank; exceed One million pesos (P1,000,000)
for each transactional violation or One
(b) suspension of rediscounting
hundred thousand pesos (P100,000)
privileges or access to Bangko
per calendar day for violations of a
Sentral credit facilities;
continuing nature, taking into
(c) suspension of lending or foreign consideration the attendant
exchange operations or authority to circumstances, such as the nature and
accept new deposits or make new gravity of the violation or irregularity
investments; and the size of the
institution: Provided, That in case profit
(d) suspension of interbank clearing
is gained or loss is avoided as a result
privileges; and/or
of the violation, a fine no more than
(e) revocation of quasi-banking license. three (3) times the profit gained or loss
avoided may also be imposed;
Resignation or termination from office
shall not exempt such director or officer from "(b) suspension of rediscounting privileges
administrative or criminal sanctions. cdtai or access to Bangko Sentral credit
facilities;
The Monetary Board may, whenever
warranted by circumstances, preventively "(c) suspension of lending or foreign
suspend any director or officer of a bank or exchange operations or authority to
quasi-bank pending an accept new deposits or make new
investigation: Provided, That should the case investments;
be not finally decided by the Bangko
"(d) suspension of interbank clearing
Sentral within a period of one hundred
privileges; and/or
twenty (120) days after the date of
suspension, said director or officer shall be "(e) suspension or revocation of quasi-
reinstated in his position: Provided, further, banking or other special licenses.
That when the delay in the disposition of the "Resignation or termination from office
case is due to the fault, negligence or petition shall not exempt such director, officer or
of the director or officer, the period of delay employee from administrative or criminal
shall not be counted in computing the period sanctions.
of suspension herein provided.
"The Monetary Board may, whenever
The above administrative sanctions need warranted by circumstances, preventively
suspend any director, officer or employee of
not be applied in the order of their severity. the institution pending an
investigation: Provided, That should the case
Whether or not there is an administrative
be not finally decided by the Bangko
proceeding, if the institution and/or the
Sentral within a period of one hundred twenty
directors and/or officers concerned continue
(120) days after the date of suspension, said
with or otherwise persist in the commission
director, officer or employee shall be
of the indicated practice or violation, the
reinstated in his position: Provided, further,
Monetary Board may issue an order requiring
That when the delay in the disposition of the
the institution and/or the directors and/or
case is due to the fault, negligence or petition
officers concerned to cease and desist from
of the director or officer, the period of delay
the indicated practice or violation, and may
shall not be counted in computing the period
further order that immediate action be taken
of suspension herein provided.
to correct the conditions resulting from such
practice or violation. The cease and desist "The above administrative sanctions need
order shall be immediately effective upon not be applied in the order of their severity.
service on the respondents.
"Whether or not there is an administrative
The respondents shall be afforded an proceeding, if the institution and/or the
opportunity to defend their action in a directors, officers or employees concerned
hearing before the Monetary Board or any continue with or otherwise persist in the
committee chaired by any Monetary Board commission of the indicated practice or
member created for the purpose, upon violation, the Monetary Board may issue an
request made by the respondents within five order requiring the institution and/or the
(5) days from their receipt of the order. If no directors, officers or employees concerned to
such hearing is requested within said period, cease and desist from the indicated practice or
the order shall be final. If a hearing is violation, and may further order that
conducted, all issues shall be determined on immediate action be taken to correct the
the basis of records, after which the conditions resulting from such practice or
Monetary Board may either reconsider or violation. The cease and desist order shall be
make final its order. immediately effective upon service on the
respondents.
The Governor is hereby authorized, at his
discretion, to impose upon banking "The respondents shall be afforded an
institutions, for any failure to comply with the opportunity to defend their action in a hearing
requirements of law, Monetary Board before the Monetary Board or any committee
regulations and policies, and/or instructions chaired by any Monetary Board member
issued by the Monetary Board or by the created for the purpose, upon request made
Governor, fines not in excess of Ten thousand by the respondents within five (5) days from
pesos (P10,000) a day for each violation, the their receipt of the order. If no such hearing is
imposition of which shall be final and requested within said period, the order shall be
executory until reversed, modified or lifted by final. If a hearing is conducted, all issues shall
the Monetary Board on appeal. be determined on the basis of records, after
which the Monetary Board may either
reconsider or make final its order.
"The Governor is hereby authorized, at his
discretion, to impose upon banks and quasi-
banks, including their subsidiaries and affiliates
engaged in allied activities, and other entities
which under this Act or special laws are subject
 to Bangko Sentral supervision for any failure to
comply with the requirements of law,
Monetary Board regulations and policies,
and/or instructions issued by the Monetary
Board or by the Governor, fines not in excess
of One hundred thousand pesos (P100,000) for
each transactional violation or Thirty thousand
pesos (P30,000) per calendar day for violations
of a continuing nature, the imposition of which
shall be final and executory until reversed,
modified or lifted by the Monetary Board on
appeal."
SECTION 38. Operating Departments of
"SEC. 38-A. Issuance of Injunctive Relief
the Bangko Sentral. — The Monetary Board
against Bangko Sentral Actions. — No court,
shall, in accordance with its authority under
other than the Court of Appeals and the
this Act, determine and provide for such
Supreme Court, shall issue any temporary
operating departments and other offices,
restraining order, preliminary injunction or
including a public information office, of
preliminary mandatory injunction against
the Bangko Sentral as it deems convenient for
the Bangko Sentral for any action under this
the proper and efficient conduct of the
Act.
operations and the accomplishment of the
objectives of the Bangko Sentral. The "Any restraining order or injunction issued
functions and duties of such operating in violation of this section is void and of no
departments and other offices shall be force and effect.
determined by the Monetary Board. "The provisions of the Rules of Court on
injunctions insofar as these are applicable and
not inconsistent with the provisions of this Act
shall govern the issuance and dissolution of
restraining orders or injunctions against
the Bangko Sentral."

SECTION 39. Reports and Publications. — "SEC. 39. Reports and Publications. —
The Bangko Sentral shall publish a general The Bangko Sentral shall publish a general
balance sheet showing the volume and balance sheet showing the volume and
composition of its assets and liabilities as of composition of its assets and liabilities as of the
the last working day of the month within sixty last working day of the month within ninety (90)
(60) days after the end of each month except days after the end of each month, which may
for the month of December, which shall be be reasonably extended by the Bangko
submitted within ninety (90) days after the Sentral as warranted.
end thereof.
"The Monetary Board shall publish and
The Monetary Board shall publish and submit the following reports to the President
submit the following reports to the President and to the Congress:
and to the Congress:
"(a) not later than ninety (90) days after the
(a) not later than ninety (90) days after end of each quarter, an analysis of
the end of each quarter, an analysis economic and financial developments,
of economic and financial including the condition of net
 developments, including the international reserves and monetary
condition of net international aggregates;
reserves and monetary aggregates;
"(b) within ninety (90) days after the end of
(b) within ninety (90) days after the end the year, which may be reasonably
of the year, the preceding year's extended by the Bangko Sentral as
budget and profit and loss statement warranted, the preceding year's budget
of the Bangko Sentral showing in and profit and loss statement of
reasonable detail the result of its the Bangko Sentral showing in
operations; reasonable detail the result of its
operations;
(c) one hundred twenty (120) days after
the end of each semester, a review "(c) one hundred twenty (120) days after
of the state of the financial system; the end of each semester, a review of
and the state of the financial system; and
(d) as soon as practicable, abnormal "(d) as soon as practicable, abnormal
movements in monetary aggregates movements in monetary aggregates
and the general price level, and, not and the general price level, and, not
later than seventy-two (72) hours later than seventy-two (72) hours after
after they are taken, remedial they are taken, remedial measures in
measures in response to such response to such abnormal
abnormal movements. movements."

SECTION 40. Annual Report. — Before the "SEC. 40. Annual Report. — Before the end
end of March of each year, the Bangko of June of each year, the Bangko Sentral shall
Sentral shall publish and submit to the publish and submit to the President and the
President and the Congress an annual report Congress an annual report on the condition of
on the condition of the Bangko the Bangko Sentral including a review of the
Sentral including a review of the policies and policies and measures adopted by the
measures adopted by the Monetary Board Monetary Board during the past year and an
during the past year and an analysis of the analysis of the economic and financial
economic and financial circumstances which circumstances which gave rise to said policies
gave rise to said policies and measures. and measures.
The annual report shall also include a "The annual report shall also include a
statement of the financial condition of statement of the financial condition of
the Bangko Sentral and a statistical appendix the Bangko Sentral and a statistical appendix
which shall present, as a minimum, the which shall present, as a minimum, the
following data: following data:
(a) the monthly movement of monetary "(a) the monthly movement of monetary
aggregates and their components; aggregates and their components;
(b) the monthly movement of purchases "(b) the monthly movement of purchases
and sales of foreign exchange and of and sales of foreign exchange and of
the international reserves of the international reserves of
the Bangko Sentral; the Bangko Sentral;
(c) the balance of payments of the "(c) the balance of payments of the
Philippines; Philippines;
 (d) monthly indices of consumer prices "(d) monthly indices of consumer prices and
and of import and export prices; of import and export prices;
(e) the monthly movement, in summary "(e) the monthly movement, in summary
form, of exports and imports, by form, of exports and imports, by
volume and value; aisa dc volume and value;
(f) the monthly movement of the "(f) the monthly movement of the accounts
accounts of the Bangko Sentral and of of the Bangko Sentral and of other
other banks; banks;
(g) the principal data on government "(g) the principal data on government
receipts and expenditures and on the receipts and expenditures and on the
status of the public debt, both status of the public debt, both domestic
domestic and foreign; and and foreign; and

(h) the texts of the major legal and "(h) the texts of the major legal and
administrative measures adopted by administrative measures adopted by
the Government and the Monetary the Government and the Monetary
Board during the year which relate to Board during the year which relate to
the functions or operations of the functions or operations of
the Bangko Sentral or of the financial the Bangko Sentral or of the financial
system. system.

The Bangko Sentral shall publish another "The Bangko Sentral shall publish another
version of the annual report in terms version of the annual report in terms
understandable to the layman. understandable to the layman."

Failure to comply with the reportorial

requirements pursuant to this article without
justifiable reason as may be determined by
the Monetary Board shall cause the
withholding of the salary of the personnel
concerned until such requirements are
complied with.
"SEC. 43. Computation of Profits and
SECTION 43. Computation of Profits and
Losses. — Within the first sixty (60) days
Losses. — Within the first thirty (30) days
following the end of each year, the Bangko
following the end of each year, the Bangko
Sentral shall determine its net profits or losses.
Sentral shall determine its net profits or
Notwithstanding any provision of law to the
losses. In the calculation of net profits,
contrary, the net profit of the Bangko
the Bangko Sentral shall make adequate
Sentral shall be determined after allowing for
allowance or establish adequate reserves for
expenses of operation, adequate allowances
bad and doubtful accounts.
and provisions for bad and doubtful debts,
depreciation in assets, and such allowances
and provisions for contingencies or other
purposes as the Monetary Board may
determine in accordance with prudent
financial management and effective central
banking operations."
 "SEC. 43-A. Bangko Sentral Reserve Fund.
— The Bangko Sentral shall establish a reserve
fund, whenever it has income or positive
surplus, to mitigate future risks such as, but
not limited to, the impacts of foreign exchange
and price fluctuations, and to address other
contingencies inherent in carrying out
the Bangko Sentral-mandated functions as
central monetary authority. The reserve fund
shall consist of fluctuation reserve,
contingency reserve and such other reserves
as the Monetary Board deems prudent or
necessary."
SECTION 45. Revaluation Profits and "SEC. 45. Revaluation Profits and Losses. —
Losses. — Profits or losses arising from any Unrealized profits or losses arising from any
revaluation of the Bangko Sentral's net assets revaluation of the Bangko Sentral's assets,
or liabilities in gold or foreign currencies with liabilities or derivative instruments
respect to the Philippine peso shall not be denominated in foreign currencies with respect
included in the computation of the annual to the movements of prices and exchange rates
profits and losses of the Bangko Sentral. Any from third currencies to Philippine peso shall
profits or losses arising in this manner shall be not be included in the computation of the
offset by any amounts which, as a annual profits and losses of the Bangko Sentral.
consequence of such revaluations, are owed Any profits or losses arising in this manner shall
by the Philippines to any international or be offset by any amounts which, as a
regional intergovernmental financial consequence of such revaluations, are owed by
institution of which the Philippines is a the Philippines to any international or regional
member or are owed by these institutions to intergovernmental financial institution of which
the Philippines. Any remaining profit or loss the Philippines is a member or are owed by
shall be carried in a special frozen account these institutions to the Philippines. Any
which shall be named "Revaluation of remaining unrealized profit or loss shall be
International Reserve" and the net balance of carried in an account which shall be named
which shall appear either among the liabilities 'Revaluation of International Reserve (RIR),' and
or among the assets of the Bangko Sentral, the net balance of which shall appear either
depending on whether the revaluations have among the liabilities or among the assets of
produced net profits or net losses. the Bangko Sentral, depending on whether the
revaluations have produced net profits or net
The Revaluation of International Reserve
losses.
account shall be neither credited nor debited
for any purposes other than those specifically "The RIR account shall be credited or
authorized in this section. debited for the periodic revaluation as
authorized in this section and to reflect the
corresponding adjustment resulting to
reduction in the Bangko Sentral's net foreign
assets, liabilities and foreign currency-
denominated derivative instruments. The RIR
shall be adjusted and recognized in the income
statement upon sale of gold and foreign
securities, or when the foreign currency is
 repatriated to local currency or is used to pay
foreign obligations, or upon maturity of a
foreign currency-denominated forward or
option contract involving the Philippine peso."
SEC. 61. Guiding Principle. — The Monetary
SECTION 61. Guiding Principle. — The
Board shall regularly assess price developments
Monetary Board shall endeavor to control
and outlook and , based on its analysis and
any expansion or contraction in monetary
evaluation of inflationary pressures, use its
aggregates which is prejudicial to the
policy instruments to attain and maintain price
attainment or maintenance of price stability.
stability.

SECTION 63. Action When Abnormal "SEC. 63. Action When Abnormal
Movements Occur in the Monetary Movements Occur in the Price Level. —
Aggregates, Credit, or Price Level. — Whenever abnormal movements in the prices
Whenever abnormal movements in the endanger the stability of the Philippine
monetary aggregates, in credit, or in prices economy or important sectors thereof, the
endanger the stability of the Philippine Monetary Board shall:
economy or important sectors thereof, the
"(a) take such remedial measures as are
Monetary Board shall:
appropriate and within the powers
(a) take such remedial measures as are granted to the Monetary Board and
appropriate and within the powers the Bangko Sentral under the
granted to the Monetary Board and provisions of this Act; and
the Bangko Sentral under the
"(b) submit to the President of the
provisions of this Act; and
Philippines and the Congress, and
(b) submit to the President of the make public, a detailed report which
Philippines and the Congress, and shall include, as a minimum, a
make public, a detailed report which description and analysis of:
shall include, as a minimum, a "(1) the causes of the rise or fall
description and analysis of: of prices;
(1) the causes of the rise or fall of the "(2) the extent to which the
monetary aggregates, of credit changes in prices have been reflected in
or of prices; cd changes in the level of domestic output,
(2) the extent to which the changes in employment, wages and economic
the monetary aggregates, in activity in general, and the nature and
credit, or in prices have been significance of any such changes; and
reflected in changes in the "(3) the measures which the
level of domestic output, Monetary Board has taken and the other
employment, wages and monetary, fiscal or administrative
economic activity in general, measures which it recommends to be
and the nature and adopted.
significance of any such
changes; and "Whenever the cost of living index
increases by more than ten percent (10%), in
(3) the measures which the Monetary relation to the level existing at the end of the
Board has taken and the other corresponding month of the preceding year, or
 monetary, fiscal or even though this quantitative guideline has not
administrative measures which been reached when in its judgment the
it recommends to be adopted. circumstances so warrant, the Monetary Board
shall submit the reports mentioned in this
Whenever the monetary aggregates, or
section, and shall state therein whether, in the
the level of credit, increases or decreases by
opinion of the Board, said changes in the cost
more than fifteen percent (15%), or the cost
of living represent a threat to the stability of
of living index increases by more than ten
the Philippine economy or of important sectors
percent (10%), in relation to the level existing
thereof.
at the end of the corresponding month of the
preceding year, or even though any of these "The Monetary Board shall continue to
quantitative guidelines have not been submit periodic reports to the President of the
reached when in its judgment the Philippines and to Congress until it considers
circumstances so warrant, the Monetary that the price disturbances have disappeared
Board shall submit the reports mentioned in or have been adequately controlled."
this section, and shall state therein whether,
in the opinion of the Board, said changes in
the monetary aggregates, credit or cost of
living represent a threat to the stability of the
Philippine economy or of important sectors
thereof.
The Monetary Board shall continue to
submit periodic reports to the President of
the Philippines and to Congress until it
considers that the monetary, credit or price
disturbances have disappeared or have been
adequately controlled.

SECTION 66. Composition of the "SEC. 66. Composition of the International

International Reserves. — The international Reserves. — The international reserves of
reserves of the Bangko Sentral may include the Bangko Sentral may include, but shall not
but shall not be limited to the following be limited to, the following assets:
assets:
"(a) gold; and
(a) gold; and
"(b) assets in foreign currencies in the form
(b) assets in foreign currencies in the of: documents and instruments
form of: documents and customarily employed for the
instruments customarily international transfer of funds;
employed for the international demand and time deposits in central
transfer of funds; demand and banks, treasuries and commercial
time deposits in central banks, banks abroad; foreign government
treasuries and commercial banks securities; and foreign notes and coins.
abroad; foreign government "The Monetary Board shall endeavor to
securities; and foreign notes and hold the foreign exchange resources of
coins. the Bangko Sentral in freely convertible
The Monetary Board shall endeavor to currencies. The Monetary Board shall issue
hold the foreign exchange resources of regulations determining the other
the Bangko Sentral in freely convertible qualifications which foreign exchange assets
currencies; moreover, the Board shall give must meet in order to be included in the
particular consideration to the prospects of international reserves of the Bangko Sentral.
continued strength and convertibility of the
"The Bangko Sentral shall be free to
currencies in which the reserve is maintained,
convert any of the assets in its international
as well as to the anticipated demands for
reserves into other assets as described in
such currencies. The Monetary Board shall
subsections (a) and (b) of this section."
issue regulations determining the other
qualifications which foreign exchange assets
must meet in order to be included in the
international reserves of the Bangko Sentral.
The Bangko Sentral shall be free to convert
any of the assets in its international reserves
into other assets as described in subsections (a)
and (b) of this section.
SECTION 81. Guiding Principles. — The "SEC. 81. Guiding Principles. — The
rediscounts, discounts, loans and advances rediscounts, discounts, loans and advances
which the Bangko Sentral is authorized to which the Bangko Sentral is authorized to
extend to banking institutions under the extend to banking institutions, under the
provisions of the present article of this Act provisions of the present article of this Act
shall be used to influence the volume of shall be used to influence the volume of credit
credit consistent with the objective of price consistent with the objective of price stability
stability. and maintenance of financial stability."

SECTION 84. Emergency Loans and "SEC. 84. Emergency Loans and Advances.
Advances. — In periods of national and/or — In periods of national and/or local
local emergency or of imminent financial emergency or of imminent financial panic
panic which directly threaten monetary and which directly threaten monetary and financial
banking stability, the Monetary Board may, stability, the Monetary Board may, by a vote of
by a vote of at least five (5) of its members, at least five (5) of its members, authorize
authorize the Bangko Sentral to grant the Bangko Sentral to grant extraordinary
extraordinary loans or advances to banking loans or advances to banking institutions,
institutions secured by assets as defined secured by assets as defined
hereunder: Provided, That while such loans or hereunder: Provided, That while such loans or
advances are outstanding, the debtor advances are outstanding, the debtor
institution shall not, except upon prior institution shall not, except upon prior
authorization by the Monetary Board, expand authorization by the Monetary Board, expand
the total volume of its loans or investments. the total volume of its loans or investments.
The Monetary Board may, at its "The Monetary Board may, at its
discretion, likewise authorize the Bangko discretion, likewise authorize the Bangko
Sentral to grant emergency loans or advances Sentral to grant emergency loans or advances
to banking institutions, even during normal to banking institutions, even during normal
periods, for the purpose of assisting a bank in periods, for the purpose of assisting a bank in a
a precarious financial condition or under precarious financial condition or under serious
serious financial pressures brought by financial pressures brought by unforeseen
unforeseen events, or events which, though events, or events which, though foreseeable,
foreseeable, could not be prevented by the could not be prevented by the bank
bank concerned: Provided, however, That the concerned: Provided, however, That the
Monetary Board has ascertained that the Monetary Board has ascertained that the bank
bank is not insolvent and has the assets is not insolvent and has the assets defined
defined hereunder to secure the hereunder to secure the advances: Provided,
advances: Provided, further, That a further, That a concurrent vote of at least five
concurrent vote of at least five (5) members (5) members of the Monetary Board is
of the Monetary Board is obtained. obtained.
The amount of any emergency loan or "The amount of any emergency loan or
advance shall not exceed the sum of fifty advance shall not exceed the sum of fifty
percent (50%) of total deposits and deposit percent (50%) of total deposits and deposit
substitutes of the banking institution and substitutes of the banking institution, and shall
shall be disbursed in two (2) or more be disbursed in two (2) or more tranches. The
tranches. The amount of the first tranche amount of the first tranche shall be limited to
shall be limited to twenty-five percent (25%) twenty-five percent (25%) of the total deposit
of the total deposit and deposit substitutes of and deposit substitutes of the institution and
the institution and shall be secured by shall be secured by (a) government securities;
government securities to the extent of their (b) acceptable guarantees backed up by the
applicable loan values and other national government or its securities; (c) other
unencumbered first class collaterals which unencumbered first class collaterals; and (d)
the Monetary Board may approve: Provided, other kinds of collaterals as may be authorized
That if as determined by the Monetary Board, by the Monetary Board in accordance with
the circumstances surrounding the sound risk management principles: Provided,
emergency warrant a loan or advance greater That if as determined by the Monetary Board,
than the amount provided hereinabove, the the circumstances surrounding the emergency
amount of the first tranche may exceed warrant a loan or advance greater than the
twenty-five percent (25%) of the bank's total amount provided hereinabove, the amount of
deposit and deposit substitutes if the same is the first tranche may exceed twenty-five
adequately secured by applicable loan values percent (25%) of the bank's total deposit and
of government securities and unencumbered deposit substitutes if the same is adequately
first class collaterals approved by the secured by any of the collaterals set forth
Monetary Board, and the principal above as approved by the Monetary Board,
stockholders of the institution furnish an and the principal stockholders of the
acceptable undertaking to indemnify and institution furnish an acceptable undertaking
hold harmless from suit a conservator whose to indemnify and hold harmless from suit a
appointment the Monetary Board may find conservator whose appointment the Monetary
necessary at any time. casia Board may find necessary at any time.
Prior to the release of the first tranche, "Prior to the release of the first tranche,
the banking institution shall submit to the banking institution shall submit to
the Bangko Sentral a resolution of its board of the Bangko Sentral a resolution of its board of
directors authorizing the Bangko Sentral to directors authorizing the Bangko Sentral to
evaluate other assets of the banking evaluate other assets of the banking institution
institution certified by its external auditor to certified by its external auditor to be good and
be good and available for collateral purposes available for collateral purposes should the
should the release of the subsequent tranche release of the subsequent tranche be
be thereafter applied for. thereafter applied for.
The Monetary Board may, by a vote of at "The Monetary Board may, by a vote of at
least five (5) of its members, authorize the least five (5) of its members, authorize the
release of a subsequent tranche on condition release of a subsequent tranche on condition
that the principal stockholders of the that the principal stockholders of the
institution: institution:
(a) furnish an acceptable undertaking to "(a) furnish an acceptable undertaking to
indemnify and hold harmless from indemnify and hold harmless from suit a
suit a conservator whose conservator whose appointment the
appointment the Monetary Board Monetary Board may find necessary at
may find necessary at any time; and any time; and
(b) provide acceptable security which, in "(b) provide acceptable security which, in the
the judgment of the Monetary Board, judgment of the Monetary Board, would
would be adequate to supplement, be adequate to supplement, where
where necessary, the assets tendered necessary, the assets tendered by the
by the banking institution to banking institution to collateralize the
collateralize the subsequent tranche. subsequent tranche.
In connection with the exercise of these "In connection with the exercise of these
powers, the prohibitions in Section 128 of this powers, the prohibitions in Section 128 of this
Act shall not apply insofar as it refers to Act shall not apply insofar as it refers to
acceptance as collateral of shares and their acceptance as collateral of shares and their
acquisition as a result of foreclosure acquisition as a result of foreclosure
proceedings, including the exercise of voting proceedings, including the exercise of voting
rights pertaining to said shares: Provided, rights pertaining to said shares: Provided,
however, That should the Bangko however, That should the Bangko
Sentral acquire any of the shares it has Sentral acquire any of the shares it has
accepted as collateral as a result of accepted as collateral as a result of foreclosure
foreclosure proceedings, the Bangko proceedings, the Bangko Sentral shall dispose
Sentral shall dispose of said shares by public of said shares by public bidding within one (1)
bidding within one (1) year from the date of year from the date of consolidation of title by
consolidation of title by the Bangko Sentral. the Bangko Sentral.
Whenever a financial institution incurs an "Whenever a financial institution incurs an
overdraft in its account with the Bangko overdraft in its account with the Bangko
Sentral, the same shall be eliminated within the Sentral, the same shall be eliminated within
period prescribed in Section 102 of this Act. the period prescribed in Section 102 of this
Act."
SECTION 88. Other Requirements. — The "SEC. 88-A. Exemption of Collaterals from
Monetary Board may prescribe, within the Attachments, Executions and Other Restrictions.
general powers granted to it under this Act, — Collaterals on loans and advances granted by
additional conditions which borrowing the Bangko Sentral, whether or not the interest
institutions must satisfy in order to have access of the Bangko Sentral is registered, shall not be
to the credit of the Bangko Sentral. These subject to attachment, execution or any other
conditions may refer to the rates of interest court process or administrative restrictions on
charged by the banks, to the purposes for which land use, nor shall they be included in the
their loans in general are destined, and to any property of insolvent persons or institutions."
other clearly definable aspect of the credit
policy of the bank.
"SEC. 88-B. Deputization of Legal Staff in
Case of Foreclosures. — In case of an
extrajudicial foreclosure of mortgage in
connection with loans and advances under this
article, the Bangko Sentral may deputize any of
its lawyers to conduct the public auction
pursuant to Act No. 3135, as amended.
"Likewise, in case of a judicial foreclosure in
connection with loans and advances under this
article, the Bangko Sentral may, with the
approval of the court, deputize any of its
lawyers to act as special sheriff in the sale of a
debtor's properties and in the enforcement of
court writs and processes related thereto. The
special sheriff of the Bangko Sentral shall make
a report to the proper court after any action has
been taken by him, which court shall treat such
action as if it were an act of its own sheriff in all
respects.
"No restraining order or injunction shall be
issued by the court enjoining the Bangko
Sentral from proceeding with the foreclosure of
the mortgage unless a bond is posted in favor of
the Bangko Sentral in an amount equivalent to
the total claim of the Bangko Sentral. The
restraining order or injunction shall be refused
or, if granted, shall be dissolved upon filing by
the Bangko Sentral of a bond, which shall be in
the form of a Bangko Sentral check, in an
amount twice the amount of the original bond
posted conditioned that the Bangko Sentral will
pay the damages which the party may suffer by
the refusal or dissolution of the injunction. The
provisions of the Rules of Court on injunctions
insofar as they are applicable and not
inconsistent with the provisions of this section
shall govern the issuance and dissolution of the
restraining order or injunction contemplated in
this section."

"SEC. 88-C. Right of Redemption of

Foreclosed Real Property; Right of Possession
during Redemption Period. — In the event of
foreclosure, whether judicially or extrajudicially,
 the mortgagor, who is a natural person, shall
have the right to redeem the property within
one (1) year from the date of foreclosure sale.
In case the mortgagor is a juridical person, the
mortgagor shall have the right to redeem the
property sold in a judicial foreclosure sale
within one (1) year from the date of foreclosure
sale: Provided, That in case of an extrajudicial
foreclosure, notwithstanding Act No. 3135, the
mortgagor shall have the right to redeem the
property sold within ninety (90) days from the
foreclosure sale but not later than the
registration of the certificate of foreclosure
sale. Redemption shall be effected by paying
the principal, interests, charges, commissions
and all claims of whatever nature of the Bangko
Sentral outstanding and due as of the date of
foreclosure sale, including all costs and other
expenses incurred by reason of the foreclosure
sale and custody of the property.
"The Bangko Sentral, as purchaser in the
foreclosure sale and without need of posting a
bond, may take possession of the foreclosed
property during the redemption period.
The Bangko Sentral shall be entitled to the
fruits of the property, the same to be applied
against the redemption price."

"SEC. 88-D. Unsecured Bangko Sentral

Claims. — All unsecured claims of the Bangko
Sentral shall be considered preferred credits
similar to taxes due to the National
Government in the order of preference under
Article 2244 of the new Civil Code."

SECTION 89. Provisional Advances to the

"SEC. 89-A. Financial Facilities for Islamic
National Government. — The Bangko
Banks. — The Bangko Sentral may, taking into
Sentral may make direct provisional advances
consideration the peculiar characteristics of
with or without interest to the National
islamic banking, formulate rules and
Government to finance expenditures
regulations for the extension of financial
authorized in its annual
facilities to Islamic banks: Provided, That such
appropriation: Provided, That said advances
exposures shall be properly secured."
shall be repaid before the end of three (3)
months extendible by another three (3)
months as the Monetary Board may allow
following the date the National Government
received such provisional advances and shall
not, in their aggregate, exceed twenty
percent (20%) of the average annual income
of the borrower for the last three (3)
preceding fiscal years.
"SEC. 89-B. Loans to the Philippine Deposit
Insurance Corporation (PDIC). — The Bangko
Sentral, pursuant to its mandate of
maintaining financial stability, may lend funds
to the PDIC for insurance purposes and in
cases of financial assistance that the latter is
authorized to extend under Section 22(e) of
Republic Act No. 3591, as amended.
Notwithstanding Section 23 of Republic Act
No. 3591, as amended, the Monetary Board
shall prescribe interest rates and such other
terms and conditions of the loan."

SECTION 92. Issue and Negotiation of "SEC. 92. Issue and Negotiation of Bangko
Bangko Sentral Obligations. — In order to Sentral Obligations. — In order to provide
provide the Bangko Sentral with effective the Bangko Sentral with effective instruments
instruments for open market operations, for open market operations, the Bangko
the Bangko Sentral may, subject to such rules Sentral may, subject to such rules and
and regulations as the Monetary Board may regulations as the Monetary Board may
prescribe and in accordance with the prescribe and in accordance with the
principles stated in Section 90 of this Act, principles stated in Section 90 of this Act,
issue, place, buy and sell freely negotiable issue, place, buy and sell freely negotiable
evidences of indebtedness of the Bangko evidences of indebtedness of the Bangko
Sentral: Provided, That issuance of such Sentral. Said evidences of indebtedness may
certificates of indebtedness shall be made be issued directly against the international
only in cases of extraordinary movement in reserve of the Bangko Sentral or against the
price levels. Said evidences of indebtedness securities which it has acquired under the
may be issued directly against the provisions of Section 91 of this Act, or may be
international reserve of the Bangko Sentral or issued without relation to specific types of
against the securities which it has acquired assets of the Bangko Sentral.
under the provisions of Section 91 of this Act,
"The Monetary Board shall determine the
or may be issued without relation to specific
interest rates, maturities and other
types of assets of the Bangko Sentral.
characteristics of said obligations of
The Monetary Board shall determine the the Bangko Sentral, and may, if it deems it
interest rates, maturities and other advisable, denominate the obligations in gold
characteristics of said obligations of or foreign currencies.
the Bangko Sentral, and may, if it deems it
"Subject to the principles stated in
advisable, denominate the obligations in gold
Section 90 of this Act, the evidences of
or foreign currencies.
indebtedness of the Bangko Sentral to which
Subject to the principles stated in Section this section refers may be acquired by
90 of this Act, the evidences of indebtedness the Bangko Sentral before their maturity,
of the Bangko Sentral to which this section either through purchases in the open market
refers may be acquired by the Bangko or through redemptions at par and by lot if
Sentral before their maturity, either through the Bangko Sentral has reserved the right to
purchases in the open market or through make such redemptions. The evidences of
redemptions at par and by lot if the Bangko indebtedness acquired or redeemed by
Sentral has reserved the right to make such the Bangko Sentral shall not be included
redemptions. The evidences of indebtedness among its assets, and shall be immediately
acquired or redeemed by the Bangko retired and cancelled."
Sentral shall not be included among its assets,
and shall be immediately retired and
cancelled.
SECTION 95. Definition of Deposit "SEC. 95. Definition of Deposit Substitutes. —
Substitutes. — The term "deposit substitutes" The term 'deposit substitutes' is defined as an
is defined as an alternative form of obtaining alternative form of obtaining funds from the
funds from the public, other than deposits, public, other than deposits, through the
through the issuance, endorsement, or issuance, endorsement, or acceptance of debt
acceptance of debt instruments for the instruments for the borrower's own account, for
borrower's own account, for the purpose of the purpose of relending or purchasing of
relending or purchasing of receivables and receivables and other obligations. These
other obligations. These instruments may instruments may include, but need not be
include, but need not be limited to, bankers limited to, bankers acceptances, promissory
acceptances, promissory notes, participations, notes, participations, certificates of assignment
certificates of assignment and similar and similar instruments with recourse, and
instruments with recourse, and repurchase repurchase agreements. The phrase 'obtaining
agreements. The Monetary Board shall funds from the public' shall mean borrowing
determine what specific instruments shall be from twenty (20) or more lenders at any one
considered as deposit substitutes for the time, and, for this purpose, 'lenders' shall refer
purposes of Section 94 of this Act: Provided, to individuals and corporate entities that are not
however, That deposit substitutes of acting as financial intermediaries, subject to the
commercial, industrial and other non-financial safeguards and regulations issued by the
companies issued for the limited purpose of Monetary Board. The Monetary Board shall
financing their own needs or the needs of their determine what specific instruments shall be
agents or dealers shall not be covered by the considered as deposit substitutes for the
provisions of Section 94 of this Act. purposes of Section 94 of this Act: Provided,
however, That deposit substitutes of commercial,
industrial and other nonfinancial companies for
the limited purpose of financing their own needs
or the needs of their agents or dealers shall not
be covered by the provisions of Section 94 of this
Act."
SECTION 101. Reserve Deficiencies. — "SEC. 101. Reserve Deficiencies. —
Whenever the reserve position of any bank or Whenever the reserve position of any bank or
quasi-bank, computed in the manner quasi-bank, computed in the manner specified
specified in the preceding section of this Act, in the preceding section of this Act, is below the
is below the required minimum, the bank or required minimum, the bank or quasi-bank shall
quasi-bank shall pay the Bangko Sentral one- pay the Bangko Sentral monetary penalty as
tenth of one percent (1/10 of 1%) per day on may be prescribed by the Monetary
the amount of the deficiency or the prevailing Board: Provided, however, That banks and
ninety-one-day treasury bill rate plus three quasi-banks shall ordinarily be permitted to
percentage points, whichever is offset any reserve deficiency occurring on one
higher: Provided, however, That banks and or more days of the week with any excess
quasi-banks shall ordinarily be permitted to reserves which they may hold on other days of
offset any reserve deficiency occurring on the same week and shall be required to pay the
one or more days of the week with any excess penalty in accordance with the mechanism
reserves which they may hold on other days approved by the Monetary Board. In cases of
of the same week and shall be required to abuse, the Monetary Board may deny any bank
pay the penalty only on the average daily or quasi-bank the privilege of offsetting reserve
deficiency during the week. In cases of abuse, deficiencies in the aforesaid manner.
the Monetary Board may deny any bank or
"If a bank or quasi-bank chronically has a
quasi-bank the privilege of offsetting reserve
reserve deficiency, the Monetary Board may
deficiencies in the aforesaid manner.
limit or prohibit the making of new loans or
If a bank or quasi-bank chronically has a investments by the institution and may require
reserve deficiency, the Monetary Board may that part or all of the net profits of the
limit or prohibit the making of new loans or institution be assigned to surplus.
investments by the institution and may
"The Monetary Board may modify or set
require that part or all of the net profits of
aside the reserve deficiency penalties provided
the institution be assigned to surplus.
in this section, for part or the entire period of a
The Monetary Board may modify or set strike or lockout affecting a bank or a quasi-
aside the reserve deficiency penalties bank as defined in the Labor Code, or of a
provided in this section, for part or the entire national emergency affecting operations of
period of a strike or lockout affecting a bank banks or quasi-banks, or in such other instances
or a quasi-bank as defined in the Labor Code, where the grant of waiver of penalties is
or of a national emergency affecting determined by the Monetary Board to be
operations of banks or quasi-banks. The justifiable. The Monetary Board may also
Monetary Board may also modify or set aside modify or set aside reserve deficiency penalties
reserved deficiency penalties for for rehabilitation program of a bank."
rehabilitation program of a bank.
"SEC. 104. Guiding Principle. — The
SECTION 104. Guiding Principle. — The
Monetary Board shall use the powers granted
Monetary Board shall use the powers granted
to it under this Act to ensure that the supply,
to it under this Act to ensure that the supply,
availability and cost of money are in accord with
availability and cost of money are in accord
the needs of the Philippine economy and that
with the needs of the Philippine economy and
bank credit is not granted for speculative
that bank credit is not granted for speculative
purposes prejudicial to the national interests.
purposes prejudicial to the national interests.
Regulations on bank operations shall be applied
Regulations on bank operations shall be
to all banks of the same category, as may be
applied to all banks of the same category
defined by the Monetary Board, uniformly and
uniformly and without discrimination.
without discrimination."

SECTION 108. Minimum Capital Ratios. — "SEC. 108. Minimum Capital Ratios. — The
The Monetary Board may prescribe minimum Monetary Board may prescribe minimum risk-
ratios which the capital and surplus of the based capital adequacy ratios based on
banks must bear to the volume of their assets, internationally accepted standards and may
or to specific categories thereof, and may alter alter said ratios whenever it deems necessary.
said ratios whenever it deems necessary. In the exercise of its authority under this
section, the Monetary Board may require banks
to hold capital beyond the minimum
requirements commensurate to their risk
profile."
SECTION 113. Official Deposits. — "SEC. 113. Official Deposits. — The Bangko
The Bangko Sentral shall be the official Sentral shall be the official depository of the
depository of the Government, its political Government, its political subdivisions and
subdivisions and instrumentalities as well as instrumentalities as well as of government-
of government-owned or -controlled owned or -controlled corporations. As a general
corporations and, as a general policy, their policy, their cash balances should be deposited
cash balances should be deposited with with the Bangko Sentral, with only minimum
the Bangko Sentral, with only minimum working balances to be held by government-
working balances to be held by government- owned banks and such other banks licensed to
owned banks and such other banks operate in the Philippines as the Monetary
incorporated in the Philippines as the Board may authorize.
Monetary Board may designate, subject to
"The Bangko Sentral may accept deposits
such rules and regulations as the Board may
and pay interest on such deposits and other
prescribe: Provided, That such banks may
similar placements of the Government or of its
hold deposits of the political subdivisions and
political subdivisions and instrumentalities,
instrumentalities of the Government beyond
banks and other Bangko Sentral-supervised
their minimum working balances whenever
institutions."
such subdivisions and instrumentalities have
outstanding loans with said banks.
The Bangko Sentral may pay interest on
deposits of the Government or of its political
subdivisions and instrumentalities, as well as
on deposits of banks with the Bangko Sentral.

SECTION 123. Financial Advice on Official "SEC. 123. Financial Advice on Official
Credit Operations. — Before undertaking any Credit Operations. — Before undertaking any
credit operation abroad, the Government, credit operation abroad, the Government,
through the Secretary of Finance, shall through the Secretary of Finance, shall request
request the opinion, in writing, of the the opinion, in writing, of the Monetary Board
Monetary Board on the monetary on the monetary implications of the
implications of the contemplated action. Such contemplated action. Such opinions must
opinions must similarly be requested by all similarly be requested by all political
political subdivisions and instrumentalities of subdivisions and instrumentalities of the
the Government before any credit operation Government before any credit operation
abroad is undertaken by them. cdasia abroad is undertaken by them.
The opinion of the Monetary Board shall "The opinion of the Monetary Board shall
be based on the gold and foreign exchange be based on the gold and foreign exchange
resources and obligations of the nation and resources and obligations of the nation and on
on the effects of the proposed operation on the effects of the proposed operation on the
the balance of payments and on monetary balance of payments and on monetary
aggregates. aggregates.
Whenever the Government, or any of its "Whenever the Government, or any of its
political subdivisions or instrumentalities, political subdivisions or instrumentalities,
contemplates borrowing within the contemplates borrowing within the
Philippines, the prior opinion of the Monetary Philippines, the prior opinion of the Monetary
Board shall likewise be requested in order Board shall likewise be requested in order that
that the Board may render an opinion on the the Board may render an opinion on the
probable effects of the proposed operation probable effects of the proposed operation on
on monetary aggregates, the price level, and monetary aggregates, the price level, and the
the balance of payments. balance of payments.
"A credit operation or borrowing as
provided herein may take the form of different
credit facilities such as, but not limited to, a
single loan, series of loans under a borrowing
program, or credit lines. No prior Monetary
Board opinion shall be required for individual
drawdowns or borrowings within approved
credit lines or borrowing programs."

SECTION 125. Tax Exemptions. — "SEC. 125. Tax Exemptions. — The Bangko
The Bangko Sentral shall be exempt for a Sentral shall be exempt from all national,
period of five (5) years from the approval of provincial, municipal and city taxes on income
this Act from all national, provincial, derived from its governmental functions,
municipal and city taxes, fees, charges and specifically:
assessments.
"(a) income from its activities or
The exemptions authorized in the transactions in the exercise of its
preceding paragraph of this section shall supervision over the operations of
apply to all property of the Bangko Sentral, to banks and its regulatory and
the resources, receipts, expenditures, profits examination powers over non-bank
and income of the Bangko Sentral, as well as financial institutions performing quasi-
to all contracts, deeds, documents and banking functions, money service
transactions related to the conduct of the businesses, credit granting businesses
business of the Bangko Sentral: Provided, and payment system operators; and
however, That said exemptions shall apply
"(b) income in pursuit of its primary
only to such taxes, fees, charges and
objective to maintain price stability
assessments for which the Bangko
conducive to a balanced and
Sentral itself would otherwise be liable, and
sustainable growth of the economy,
shall not apply to taxes, fees, charges, or
and the promotion and maintenance of
assessments payable by persons or other
monetary and financial stability and the
entities doing business with the Bangko
convertibility of the peso.
Sentral: Provided, further, That foreign loans
and other obligations of the Bangko "All other incomes not included in the
Sentral shall be exempt, both as to principal above enumeration shall be considered as
and interest, from any and all taxes if the proprietary income and shall be subject to all
payment of such taxes has been assumed by taxes, charges, fees and assessments."
the Bangko Sentral.
 SECTION 128. Prohibitions. — The Bangko "SEC. 128. Prohibitions. — The Bangko
Sentral shall not acquire shares of any kind or Sentral shall not acquire shares of any kind or
accept them as collateral, and shall not accept them as collateral, and shall not
participate in the ownership or management participate in the ownership or management of
of any enterprise, either directly or indirectly. any enterprise, either directly or
indirectly: Provided, That this prohibition shall
The Bangko Sentral shall not engage in
not apply whenever the Monetary Board, by a
development banking or financing: Provided,
vote of at least five (5) of its members, (1)
however, That outstanding loans obtained or
deems an acquisition or investment to be
extended for development financing shall not
necessary to qualify or as required for
be affected by the prohibition of this section.
membership in international and regional
organizations; or (2) determines that investing
in and/or operating an enterprise will be
consistent with the effective fulfillment of its
mandate and will not constitute any conflict of
interest.
"The Bangko Sentral shall not engage in
development banking or financing: Provided,
however, That outstanding loans obtained or
extended for development financing shall not
be affected by the prohibition of this section."

SECTION 132. Transfer of Assets and "SEC. 132. Transfer of Assets and Liabilities.
Liabilities. — x x x. — x x x.
"xxx xxx xxx. "xxx xxx xxx.
(b) the Bangko Sentral shall remit "(b) the Bangko Sentral shall remit seventy-
seventy-five percent (75%) of its net five percent (75%) of its net profits as
profits to a special deposit account computed in this Act to a special deposit
(sinking fund) until such time as the account (sinking fund) or to the National
net liabilities of the Central Bank shall Treasury as dividends, until such time as
have been liquidated through the net liabilities of the Central Bank
generally accepted finance shall have been liquidated through
mechanisms such as, but not limited generally accepted finance mechanisms
to, write-offs, set-offs, condonation, such as, but not limited to, write-offs,
collections, reappraisal, revaluation set-offs, condonation, collections,
and bond issuance by the National reappraisal, revaluation and bond
Government, or to the National issuance by the National Government.
Government as dividends; Thereafter, it shall remit fifty percent
(50%) of its said net profits to the
"xxx xxx xxx.
National Treasury;
"xxx xxx xxx.