Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 72)
The Central Bank of the Philippines is responsible for administering the monetary, banking, and credit system of the Republic, maintaining internal and external monetary stability, preserving the international value and convertibility of the peso, and fostering conditions conducive to balanced and sustainable economic growth.
The Monetary Board is composed of seven members: the Governor (Chairman), the Secretary of Finance, the Director General of the National Economic Development Authority, the Chairman of the Board of Investments, a head of any other financial or economic agency determined by the President, and three part-time private sector members appointed by the President with consent of the Commission on Appointments.
They must be of good moral character, unquestionable integrity and responsibility, and of recognized competence in economics, banking, finance, commerce, agriculture, or industry. Specifically, the Governor and deputy-governors must have recognized competence in banking. All members must be natural-born Filipino citizens.
Persons holding any public position by election or appointment (except academic and ex officio members) and those who are directors, officers, employees, consultants or stockholders of financial institutions supervised by the Central Bank (except certain non-stock associations) are disqualified from membership.
The Monetary Board must meet at least once every two weeks and may convene more frequently as necessary.
Such persons shall be held liable for any loss or injury suffered by the Bank and may be punished with fines or imprisonment for violations including unauthorized disclosure of confidential information or misuse for personal gain.
The Monetary Board shall forbid the bank from doing business, appoint a receiver to manage and liquidate assets, and with court supervision conduct liquidation or reorganization as necessary for the protection of depositors and creditors.
Sanctions include fines up to P500 per day, suspension or removal of directors or officers, suspension of rediscounting, lending, foreign exchange, interbank clearing privileges, or authority to operate.
The Central Bank has the sole authority to issue currency in the Philippines, prohibits others from circulating currency or facsimiles, and guarantees that all notes and coins it issues are legal tender for all debts within specified limits on coin denominations.
In grave and urgent emergencies requiring immediate action, the President may modify the par value without prior congressional approval but must report such actions to Congress at the earliest opportunity.