THE amended Central Bank Law or Republic Act 11211 will enhance the supervision and examination framework of the Bangko Sentral ng Pilipinas (BSP).
Effective last March 2019, the amended BSP Charter will enhance its capacity to promote price stability, financial stability, and reliable payment system in the country for the “economic and well-being of the Filipinos”.
“Actually, andaming portion ng charter natin that we amended but there are four major reasons, number one is the corporate viability dahil we want to strengthen the institution,” BSP Senior Assistant Governor and General Counsel Elmore Capule said during the regional briefing at the SMX Convention Center, Lanang, Davao City.
The law enables the BSP to be more effective by increasing its capitalization from P50 billion to P200 billion which will be sourced from dividends declared by the BSP in favor of the national government.
Other reasons for the amendment are price stability as the law restores BSP’s authority to issue its own debt papers as part of its regular operations; financial stability as it now able to determine the compliance of institutions like money service businesses, credit-granting businesses, and payment system operators; and payment system efficiency as the law empowers the BSP to oversee payments and settlement systems.
Capule also cited a wider data access as the law gives authority of BSP to obtain data from any person or entity from the private and public sectors for statistical and policy development purposes.
Meanwhile, BSP deputy director of the Department of Economic Research Sittie Butocan said the amendment will allow BSP to be ready should it face any crisis in the future.
“Huwag na nating hintayin na may mangayari. Ngayon pa lang, we need to strengthen the authority of the BSP so that it can respond effectively and promptly when crisis happens,” Butocan said.
“Our main contribution to the growing economy of the country is the effective discharge of our mandate,” she added.