Banking notables from Codal provisions

Section 1
BSP – enjoys fiscal and administrative autonomy. Section 10
Grounds for removal
Section 2 President may remove any member of the MB fro the ff:
 Capital of BSP – P200 Billion 1. Subsequent dq under sec 8
 Fully subscribed by the Government 2. Physically/mentally incapacitated; cannot discharge functions
 Increase in capitalization funded SOLELY by dividends of BSP in properly AND lasted for 6 months
favor of the National government. 3. Guilt of acts or operations of fraudulent/illegal character
 Declared dividends deostied in a general fund 4. No longer possess the qualifications of Sec 8

Section 3 Section 11
Responsibilities of BSP Frequency of meetings – once a week
1. Provide policy directions in money, banking, credit Who can call meetings:
2. Supervision over banks 1. Governor
3. Regulatory and examination powers over 2. 2 MB memebrs
a. Quasi-banking operations of NON-BANKS
b. Money service business Quorum:
c. Credit granting business 4 members inclusive of BSP governor
d. Payment system operators
4. Have powers to authorize persons to engage in business What declarations require
5. Oversee payment and settlement systems in the ph Concurrence of at last 4 members.

Primary objective Section 13

1. Maintain price stability conducive to a balanced and sustainable Salary of governor and members of MB fixed by president
growth in the economy
2. Promote and maintain monetary stability and convertibility to peso Section 14
Any member of BOD with personal or pecuniary interest in any matter in the
Section 4 agenda of MB shall
Principal place of business – Metro Manila (but it can have branches in other 1. disclose his intrest to the Board and
palces) 2. retire from meeting when the matter is taken up

Section 5 Section 15
Powers of BSP In the exercise of its authority, the MB shall
1. Adopt, alter, use a corporate seal 1. issue rules and regualtions necessary for the effective discharge of
2. Enter into cotnracts powers of MB
3. Lease/own RP and PP 2. direct mgt,operations, admin of BSP
4. Sell/dispose RP and PP 3. establish HRM
5. Sue and be sued a. note on compensation structure (jurisprudence says
6. Do and perform other things necessary that SG 19 and below, no longer subject to SSL)
7. Acquire and hold assets 4. adopt annual budget and authorize expenditures
8. Incur liabilities in connection with its operations 5. indemnify members of BSP against all costs, expenses reasonable
9. Compromise/condone any claim/liab to BSP incurred by reason of performance of functions

Section 6 Section 16
MB composition Unless the acts or omissions of the BSP, members of MB are fully adjudged as
Who exercises powers of BSP – MB willful violation of the act, they are held free and harmless to fullest extent
Members – 7 permitted by law from any liability and shall be indemnified for any cost,
Term - years expenses in performance of duties.

7 members: Section 17
1. BSP gov (chairman); if unable to attend a meeting, designate a Powers and duties of governor
deputy governor to act as alternate 1. prepare agenda for meetings of MB
2. Member of the cabinet; designated by the president; if unable to 2. execute and administer policies approved by MB
attend, designate a Usec in his department as alternate 3. direct and supervise admin of MB (can delegate)
3. 5 members from private sector;to serve full time 4. appoint and fix remunerations and emoluments of personnel below
rank of dept head
NOTE: no reappointment more than once 5. render opinions which shall be final and exec UNLESS reversed by
MB
Section 7 6. exercise other powers vested in him by MB
vacancy due to death, resignation, removal – filled by appointment of new
member for unexpired period. Section 18
Rep of MB and BSP
Section 8 Governor shall be the rep of MB and BSP and empowered to
Qualifications 1. rep MB and BSP in all dealings with govt offices
1. Natural born citizen 2. sign contracts entered into by BSP, reports, balance sheets, etc
2. At least 35 3. represent BSP and MB in any legal proceedings
a. BUT Governor – 40 4. delegate power to rep BSP
3. Unquestionable integrity
4. Known probity and nationalism Section 19
If time is insufficient to call a meeting
Section 9 Governor + 2 members of MB may decide any matter or take action within
Disqualifications: member of MB authority of MB
1. Cannot be a DOECLAS of any
a. Bank BUT governor should later submit a report within 72 hours to president and
b. Quasi-bank congress
c. Institution subject to supervision of BSP
Consequence: Divest himself of any and all interests in such Then governor should call meeting of MB for ratification at soonest possible
institution before assumption of office. time.
2. If coming from private sector – not hold any other public office or
public employment during their tenure. Section 20
3. Cannot be a member if Governor and FULL time (the 5 members from private sector) members of MB
a. he is connected directly with any multilateral banking 1. may not accept any other employment whether paid or not paid
or financial institution 2. XPT: eleemosynary, civic cultural, by designation of pres, tasked to
b. or has a substantial interest in any private bank in PH represent interest of the govt
c. within 1 year from appointment
4. Cannot be employed in any (#3) institution within 2 years after Section 21
expiration of his term Governor + BSP appoints not more than 5 deputy governors who shall perform
a. EXCEPT: when he serves as an official representative of duties that may be assigned to them by the governor and board
the PH to such institution.

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Banking notables from Codal provisions

In absence of governor, a deputy designated by the governor shall act as chief 2. MB finds that a bank or quasi-bank is
executive of BSP 3. In a state of
a. Continuing inability or
Section 23 b. Unwillingness to maintain a condition of liquidity to
BSP has authority to require from any person/entity including govt offices, any protect depo/creds
data for statistical and policy development purposes in relation to the proper 4. MB may appoint a conservator
discharge of its functions.
Powers/resp of conservator
NOTE: 1. Powers which mb may deem necessary
1. Disaggregated data – subject to confidentiality laws 2. Report and be responsible to MB
2. Governor has power to issue subpoena for production of books, 3. Power to overrule/revoke actions of previous mgt/bod of bank/qb
records
a. If not done, can be held in contempt NOTE:
3. Data on individuals and firms gathered by BSP not made available 1. Conservatiorship should not exceed 1 year
a. XPT: collective data may be released to interested 2. Remuneration of conservator fixed by MB in amount not to exceed
persons 2/3 salary of president of institution
Section 25 a. NOTE: if conservator is from BSP, not entitled to receive
BSP has power to conduct REGULAR/SPECIAL examination of: remuneration from BSP for conservatorship
1. Banks
2. Quasi banks When conservatorship terminated
3. Including subsidiaries and affiliates engaged in allied 1. When MB finds institution can continue to operate on tis own
activities 2. When mb finds on basis of report that continuance of business
would involve probable loss
Subsidiary- >50% of VOTING STOCK (directly or indirectly owned)
Section 30 VIP
Affiliate – 50% VOTING STOCK OR LESS When thre can be receivership/liquidation
1. Ses issues report
GR: No restraining order or injunction shall be issued by the court enjoining 2. MB finds that bank/qb: P-W-I-C
the BSP a. P-U-N-D-S
i. Notified BSP or
UNLESS: there is convincing proof that the action of the BSP is plainly ii. publicly announced a unilateral closure or
arbitrary and made in bad faith. iii. has been dormant for 60 days
iv. suspended payment of its deposit
Section 25-a substitues/ liabs
Transfers or acquisition OR a series of at least 10% of VOTING STOCK in banks v. unable to pay liabs when they become due in
or quasi-banks require prior approval of BSP ordinary course of business
b. has insufficient realizable assets to meet liabs
If no approval, no legal effect, transferor shall remain accountable. c. cannot continue business without involving probable
loss
BSP may share with PDIC any info it obtained ertaining to such d. willfully violated cease and desist order that has
transfer/acquisition. become final
EFFECT:
Section 26 MB may summarily AND without need for previous hearing
Any DOS together with RI who contracts a loan or any form of financial 1. forbid institution from doing business AND
accommodation from: 2. designate as receiver
1. His bank a. PDIC – for banks
2. A bank which has the same parent as his bank b. Any person knowledgeable with banking – QBs AND
3. A bank which has the same bank owning a controlling proportion 3. Direct PDIC to proceed with liquidation
of shares as his bank) 4. MB should notify bank in writing of its decision
In excess
1. of 5% of the capital and surplus of the bank or NOTE:
2. maximum amount permitted by law (whichever LOWER) 1. Actions under Sec 29 AND 30 are final and executory and may NOT
be restrained or set aside
Effect: required to waive secrecy of bank deposits a. EXCEPT: on petition for certiorari on ground of
GADALEJ
Any info obtained, confidential. b. Filed by – SH with majority of CS
c. Filed within -10 days from receipt of order directing
Section 27 receivership, liquidation, conservatorship
Additional prohibitions of personnel of BSP: 2. Appointment of receiver exclusively vested with MB
1. Being a DOECLAS of any institution subject to supervision/exam by 3. Designation of conservator not precondition for designation of
BSP, receiver
a. EXCEPT: 4. Authority of MB to forbid banks from doing business may be
i. Non-stock savings and loan assoc exercised over non-stock savings loan assoc
ii. Rprovident funds for BSP employees only
2. Direct/indirectly requesting gift from institution subject to S/E Section 33
3. Revealing infor as to the condition of the institution  BSP may, if public interest requires, award to an institution banking
a. Except as allowed by law franchise of a bank under liquidation
4. Borrowing from any institution subject to S/E of BSP  Whatever proceeds from such awards subject to exclusive
a. UNLESS such is at arm’s length disposition of MB

Personnel Examiner Section 34, 35, 36

Can borrow if arm’s length Cannot borrow at all
Failure to make report  Fine not <50k, not >2m
Section 28 when required by SES  Imprisonment not <1 year, not >5
Regular examination – 12 months interval years or BOTH
Special examination – upon a vote of at least 5 memebrs
Makin false statement  Fine not <100k, not >2m
Head of SES should be authorized to look into books and records on material fact to MB  Imprisonment not >5 years or
BOTH
None of the reports and papers subject to inspection by public except if
Violation of law, rules  Fine not <50k, not >2M
publicity necessary for prosecution
and regulations of  Imprisonment, not <2 yrs, not >10
banking yrs
Section 28-a
Suspension or revocation of any govt license necessary for operation of BSP Informer’s reward : 1M subject to withholding taxes
must be done only with prior consultation with BSP.
Section 37
Section 29 VIP 1. Resignation/termination from office shall not exempt
When there is conservatorship director/officer/employee from admin sanctions
1. Based on a report submitted by SES 2. MB can preventively suspend DOE pending investigation

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Banking notables from Codal provisions

a. If case not done within 120 days, reinstated Up to P20 – 10 cents and below
b. Respondent afforded opportunity to be heard
CB circular 537
Section 38-a Up to 1000 – P1, P5, P10
ONLY CA and SC can issue Up to 100 – 1cent, 5 cents, 10 cents, 25 cents
1. TRO
2. WPI Section 53
3. WPMI It is the MB (with president’s approval) – who prescribes denominations,
Against BSP dscriptions, incriptions, etc of currencies

Section 39 and 40 Section 55

 BSP shall publish general balance sheet showing volume and BSP shall exchange on demand and without charge, Philippine currency of any
composition of assets and liabs – within 90 days after end of each denomination for PH notes and coins of any denomination requested. Note:
month (can be extended) not all can be converted to Ph peso.
 MB
Analysis of economic and 90 days after end of each qtr Section 56
financial developments 90 days after end of each Coins and notes unfit for circulation Coins and notes mutilated
Budget and P/L of previous year BSP shall: 1. Identification
year 1. Withdraw impossible
Review of state of financial 120 days after end of each 2. Demonetize 2. Shows signs of filing,
system sem 3. Replace them with clipping, perforation,
Abnormal movements in 72 hrs after they took adequate notes notes which lost >2/5 of
monetary aggregates remedial measures in their surface
response to the same 3. All signatures inscribed
Annual report of BSP on the Before end of june of each lost
condition of BSP+ review of year
polices and measures adopted EFFECT:
by MB +publish a laymen friendly 1. Withdrawn from
version circulation
2. Demonetized w/o
Section 41 compensation to bearer
BS, FS signed by:
1. Officers who prepared Note the discussion in tsn says, not
2. BSP gov replaced right away, that they will
look at the value first so can be
3. Auditor of BSP
replaced siguro?
Section 42
Section 57
Fiscal year – begins Jan 1, ends Dec 31
BSP can call in for replacement
Notes – more than 5 y/o
Section 43
Coins – more than 10 y/o
Within 60 days ff end of each year, BSP publish and submit to the president an
annual report on condition of BSP
Effect:
1. Remain as legal tender for 1 year from date of call
Section 44
2. After this period, cease to be legal tender
Within 1st 60 days following end of each fiscal year, MB distributes net profits
3. During following year, or longer period the MB may determine,
as ff:
they may be exchanged at par and without charge in the BSP.
1. 50% to surplus
4. After expiration of this period, ntoes and coins not exchanged will
2. 50% reverts back to natl treasury
no longer be a liability of the BSP.
Section 45
Section 58
Any unrealized profits/losses arising from revaluation of assets/liabs/
Demand deposits – all those liabilities of BSP and other banks which are
derivate instruments NOT included in computation of P/L
1. denominated in Philippine currency and
2. are subject to payment in legal tender upon demand by the
Any unrealized profits/losses shall be carried in an account named revaluation
presentation of checks
of international reserve (RIR); net balance to appear among assets and liabs
Section 59
Section 47
Only banks authorized to do so may accept funds or create liabilities payable
 Chairman of COA is e-officio auditor of BSP(can appoint a rep)
in pesos upon demand by presentation of checks
 Salaries paid by COA can be removed by COA
 Rep of COA chair must be CPA at least 10 years experience
Section 60
 DQ of rep – not a relative within 6 th degree of consanguinity of
 Checks are NOT legal tender
affinity
 Acceptance is at the option of the creditor
 Check which has been cleared and credited to the account
Section 48
equivalent to delivery of cash
Unit of monetary value in PH – peso – divided into 100 centavos
Section 63
Section 49
MB shall:
Currency – all ph notes and coins issued/ circulating in accordance with
1. Take remedial measures appropriate
provisions of this act
2. Submit to pres a detailed report
Section 50
Note:
BSP has SOL power and authority to issue currency within PH
1. When monetary aggregates, level of credit, increases/decreases by
Violation of this is an offense punishable for not<5 yrs not >10 yrs
> 15% or
imprisonment.
2. Cost of living index increases by >10%
Section 51
MB shall submit a report and state whether there is a threat to stability of PH
 Notes and coins issued by BSP are liabilities of the BSP and maybe
economy
issued ONLY against and in amounts NOT exceeding assets of BSP
 Such amount first and paramount lien on all assets of BSP
Section 65
 BSP’s holding of its own notes and coins not part of its currency
In order to maintain stability, BSP shall maintain international reserves to
issue and not part of assets/liabs of BSP
meet foreseeable demands for FC.
Section 52
Section 66
All notes and coins of BSP:
Composition of international resevres:
1. Fully guaranteed by govt
1. Gold
2. Legal tender in PH for all debts, both public and private
2. Assets in FC
a. Documents
Legal tender
b. Instruments employed for international transfer of
(sec 52):
funds
Up to P50 – 25 cents and above
c. Demand deposits

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Banking notables from Codal provisions

d. FG securities 6. negotiable treasury bills, certificates of indebtedness, notes and

e. Foreign notes and coins other negotiable obligations of the Government maturing within
three (3) years
Section 67 7. negotiable bonds issued by PH govt maturities not>10 years from
The Monetary Board shall submit periodic reports to the President and to date of advance
Congress until the threat to the international monetary stability of the
Philippines has disappeared. Section 83
 BSP may extend loans and advances to banks for not >7 days
Section 68 without collateral
In order to achieve its primary objective, MB relies of moral influence and  Purpose: to provide liquidity to banks in time of need
powers granted to it by law for mgt of monetary aggregates
Section 84
Section 69 A. In periods of:
 BSP can buy and sell gold in any form 1. Natl emergency
 Made in natl currency at prevailing intl market price 2. Imminent financial panic which directly threaten monetary
stability
Section 70 B. MB may, with vote of AT LEAST 5 members authorize BSP to grant
BSP may buy and sell foreign notes and coins, and documents and instruments extraordinary loans/advances to BANKS
of types customarily employed for the international transfer of funds. The C. Secured by assets
Bangko Sentral may engage in future exchange operations. D. Provided that while loans outstanding, banks will not expand total
volume of loan or investments.
With whom can BSP engage in forex:
1. Banks operating in PH Banks in precarious financial condition /under serious financial
2. Govt and subdivisions condition brought by unforeseen events
3. Foreign/intl financial inst MB can authorize granting of emergency loans provided:
4. Goreign govt and subs 1. Bank is NOT insolvent and
5. Other entities empowered to authorize as forex dealers 2. Has assets to secure advances
3. A concurrent vote of at least 5 members obtained
Section 71
BSP shall at all times maintain a net positive foreign asset position so that NOTE:
gross exchange assets will always exceed gross froeign liabs Any amount of emergency loan
1. shall NOT exceed 50% of total deposits and substitutes of banks
If equivalent amount in php of forex liabs >2x equivalent php of forex assets, and
BSP shall within 60 days submit report to congress 2. shall be disbursed in 2 tranches:
a. 1st – 25% of total deposit (may exceed in certain
Section 72 cirmustances)
If there is a crisis/emergency, MB + at least 5 members + approval of pres may b. The Monetary Board may, by a vote of at least five (5) of
1. temporarily suspend or restrict sales of exchange by the Bangko its members, authorize the release of a subsequent
Sentral, and tranche on condition that the principal stockholders of
2. subject all transactions in gold and foreign exchange to license by the institution:
the Bangko Sentral, and i. Acdeptable undertaking to indemnify and
3. require that any foreign exchange thereafter obtained by any hold harmless from suit a cosnervator
person residing or entity operating in the Philippines be delivered appointed by MB
to the Bangko Sentral or to any bank or agent designated by the ii. Provide acceptable security
Bangko Sentral 3. Should the BSP acquire any of the shares it has accepted as
collateral as a result of foreclosure proceedings, the Bangko Sentral
Section 73 shall dispose of said shares by public bidding within one (1) year
 The BSP shall avoid the acquisition and holding of currencies which from the date of consolidation of title by the Bangko Sentral.
are not freely convertible
 When can it be acquired – when MB determines it to be of national Section 85
interest. BSP shall collect interest and charges on ALL loans notwithstanding:
1. Closure
Section 74 2. Receivership
MB determines exchange rate of the country 3. Liquidation of debtor

Section 88-A
Section 75 Collaterals on loans and advacnes granted by BSP w/n interest is registred
With MB approval, BSP may pledge any gold or other assets which it possesses shall not be subject to:
as security against loans which it receives from foreign or international 1. Attachment
entities. 2. Execution
3. Any other court processes
Section 76 4. Admins restriction on land use
To have sufficient forex resources, MB may require the banks to sell to the BSP 5. Included in pp of insolvent persons
or to other banks all or part of their surplus holdings of foreign exchange.
Section 88 –B
Section 80 No restraining order or injunction shall be issued by the court enjoining the
Banks shall report to the Bangko Sentral the BSP from proceeding with the foreclosure of the mortgage UNLESS a bond is
1. volume and composition of their purchases and sales of gold and posted in favor of the BSP in an amount equivalent to the total claim of the
foreign exchange each day, and BSP.
2. furnish such additional information as the Bangko Sentral may
request with reference to the movements in their accounts in TRO can be released if BSP also files a bond.
foreign currencies.
Section 88 – D
Section 81 All unsecured claims of the Bangko Sentral shall be considered preferred
Normal credit operations: credits similar to taxes due to the National Government in the order of
1. commercial credits – rediscounting, discounting, purchase and sell preference under Article 2244 of the new Civil Code.
of bills and instruments with maturities of not>180 days
2. Production credits - rediscounting, discounting, purchase and sell Section 89
of bills and instruments with maturities of not>360 days BSP can make direct provisional advances with or without interest to NG to
3. Other credits. — Special credit instruments not otherwise finance expenditures in annual approp
rediscountable under the immediately preceding subSections Provided:
4. Advances against the ff collaterals not >180 days: 1. Advances repaid before end of 3 months
a. Gold coins/bullion a. Extendible to another 3 months as MB may allow
b. Securities representing obli of BSP 2. shall not, in their aggregate, exceed twenty percent (20%) of the
c. Credit insturments with average annual income of the borrower for the last three (3)
i. Not>180 maturity preceding fiscal years
ii. Not >360 maturity
5. Utilized portions of advances in current amount covered by regular Section 89-A
overdraft agreements

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Banking notables from Codal provisions
BSP may formulate rules and regulations for the extension of financial facilities
to islamic banks –should be secured
Section 89-B
BSP can lend to PDIC – for insurance purposes
Section 93
At least ONCE EVERY MONTH MB shall review portfolio of the BSP in relation
to its future credit policy
Section 94
 All banks operating in the Philippines shall be required to maintain
reserves against their deposit liabilities
 All banks at MB’s discretion can also be required to maintain
reserves for funds held in trust
 The required reserves of each bank shall be proportional to the
volume of its deposit liabilities and shall ordinarily take the form of
a deposit in the Bangko Sentral.
 Reserve requirements shall be applied to all banks of the same
category uniformly and without discrimination.
 MB may exempt from reserve requirements deposits and deposit
substitutes with remaining maturities of two (2) years or more, as
well as interbank borrowings.
 BSP shall not pay interest on reserves maintains with it unless MB
decides otherwise
Section 95
 Deposit substitutes – alternative form of obtaining funds from
public other than deposits
 “obtaining funds from public” – means borrowing from 20 or more
at any one time
 Not covered by sec 94:
1. 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
Section 96
MB may alter reserves when it deems necessary
Section 99
Whenever in the opinion of the Monetary Board it becomes necessary to
increase reserve requirements against existing liabilities, the increase shall be
made in a gradual manner and shall not exceed four percentage points in
any thirty-day period.
Section 100
 The reserve position of each bank or quasi-bank shall be
calculated daily
 on the basis of the amount
o at the close of business for the day, of the institution's
reserves and
o the amount of its liability accounts against which
reserves are required to be maintained
Section 101
 When reserve position of bank/qb is below the required minimum,
bank/qb shall pay penalty to BSP
 banks and quasi-banks shall ordinarily be permitted to offset any
reserve deficiency occurring on one or more days of the week with
any excess reserves which they may hold on other days of the same
week
 Amount to be paid:
o one-tenth of one percent (1/10 of 1%) per day on the
amount of the deficiency or
o the prevailing ninety-one-day treasury bill rate plus
three percentage points, WHICHEVER IS HIGHER
Section 102
 Bangko Sentral shall establish facilities for interbank clearing
under such rules and regulations as the Monetary Board may
prescribe.
 The deposit reserves maintained by the banks in the Bangko
Sentral in accordance with the provisions of Section 94 of this Act
shall serve as basis for the clearing of checks and the settlement of
interbank balances, subject to such rules and regulations as the
Monetary Board may issue
 any bank which incurs on overdrawing in its deposit account
with the Bangko Sentral shall fully cover said overdraft, including
interest thereon at a rate equivalent to
o one-tenth of one percent (1/10 of 1%) per day or
o the prevailing ninety-one- day treasury bill rate plus
three percentage points, WHICHEVER IS HIGHER
Section 103
Deposits maintained by banks with the Bangko Sentral as part of their reserve
requirements shall be exempt from
1. attachment,
2. garnishments, or
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3. any other order or process of any court, government agency or any
other administrative body issued to satisfy the claim of a party
other than the Government
Section 107
When MB may place ceilings
1. when MB considers it advisable to prevent or check an expansion
of bankcredit
2. board may place upper limit on amount of loans and investments
which bans may hold or
3. place a limit on the rate of increase of such assets within specified
periods of time
In no case shall MB establish limits below value of loans/investments of banks
on date on which they are notified of such restrictions.
Section 109
Government-owned corporations which perform banking or credit functions
shall coordinate their general credit policies with those of the Monetary Board.
Section 110
BSP shall act as a banker of the Government, its political subdivisions and
instrumentalities.
Section 111
BSP shall represent the Government in all dealings, negotiations and
transactions with the
a. International Monetary Fund
b. International bankfor Reconstruction and Development
Section 113
BSP shall be official depository of govt and subdivisions
their cash balances should be deposited with the Bangko Sentral, with only
minimum working balances to be held by government-owned banks and such
other banks licensed to operate in the Philippines
Section 114
 BSP shall open a general cash account for the Treasurer of the
Philippines, in which the liquid funds of the Government shall be
deposited.
 Transfers made only upon order of treasurer of PH
Section 115
In performance of its function as fiscal agent, BSP may engage the services of
other government-owned and controlled banks and of other domestic banks
for operations in localities at home or abroad in which the Bangko Sentral does
not have offices
Section 117
 Issue of securities which are oblis of govt may be made thru BSP
 BUT BSP shall not guarantee placement of securities and NOT
subscribe to their issue except to replace its maturing holdings of
securities with same type.
Section 118
Bangko Sentral shall not be a member of any stock exchange or syndicate, but
may intervene therein for the sole purpose of regulating their operations in
the placing of government securities.
Section 120
There shall be established a "Securities Stabilization Fund" which shall be
administered by the Bangko Sentral for the account of the Government.
Operations include:
1. Purchase and sale of bonds and other evidences of indebtedness
2. To increase liquidity and stabilize value of securities
Section 123
Before undertaking any credit operation abroad, the Government, through the
Secretary of Finance, shall request the opinion, in writing, of the Monetary
Board on the monetary implications of the contemplated action.
Section 124
Deputy Governor designated by the Governor of the Bangko Sentral shall be an
ex officio member of the National Economic and Development Authority
Board.
Section 125
BSP exempt from all national, provincial, municipal and city taxes on income
derived from its governmental functions, specifically:
(a) income from its activities or transactions in the exercise of its supervision
over the operations of banks and its regulatory and examination powers over
non-bank financial institutions performing quasi-banking functions, money
service businesses, credit granting businesses and payment system operators;
and
(b) income in pursuit of its primary objective to maintain price stability
conducive to a balanced and sustainable growth of the economy, and the
promotion and maintenance of monetary and financial stability and the
convertibility of the peso.
Banking notables from Codal provisions

All other incomes not included in the above enumeration shall be considered
as proprietary income and shall be subject to all taxes

Section 126
BSP fully exempt from all customs duties and consular fees and from all other
taxes, assessments and charges related to such importation or exportation

Section 128
BSP shall NOT
1. acquire shares of any kind or accept them as collateral,
2. participate in the ownership or management of any enterprise,
either directly or indirectly
a. Prohibition shall N/A whenever the Monetary Board, by
a vote of at least five (5) of its members,
i. deems an acquisition or investment to be
necessary to qualify or as required for
membership in international and regional
organizations; or
ii. 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.

-END-

Get out of my house I don’t need a parasite!

Maricel Soriano, Separada (1994)

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