QuestionsQuestions (Republic Act No. 11211)
The BSP capital is fixed at Two hundred billion pesos (P200,000,000,000). Any increase in capitalization is funded solely from the BSP’s declared dividends in favor of the National Government, which must be deposited in a special account in the General Fund and released/disbursed immediately until fully paid.
To maintain price stability conducive to a balanced and sustainable growth of the economy and employment, while also promoting and maintaining monetary stability and the convertibility of the peso.
The BSP must promote financial stability and closely work with the National Government and relevant agencies; and it must oversee payment and settlement systems, including critical financial market infrastructures, to promote sound and prudent practices consistent with financial stability.
Quorum requires the presence of four (4) members, with the Governor or his duly designated alternate among those four. Unless otherwise provided, decisions require concurrence of at least four (4) members.
BSP members and officials may be indemnified for costs and expenses reasonably incurred in civil/criminal actions connected with performance of functions, unless finally adjudged liable for willful violation of the Act, evident bad faith, or gross negligence. For settlements, indemnification is limited to matters covered by the settlement where external counsel advises that the person did not commit those disqualifying acts. Defense costs may be advanced upon an undertaking to repay if ultimately not entitled.
Similar responsibility applies to BSP Monetary Board members and personnel for (1) disclosure of confidential information or discussions/resolutions of the Monetary Board or confidential operations, unless in connection with official functions or with prior authorization; and/or (2) use of such information for personal gain or to the detriment of the BSP, Government, or third parties. Data required for the President/Congress or published under the Act are not considered confidential.
Not more than five (5) Deputy Governors. A designated Deputy Governor acts as chief executive in the absence of the Governor and exercises the Governor’s powers and duties. Also, whenever the Governor cannot attend certain ex officio board/council meetings, a designated Deputy Governor may participate and vote.
Data on individuals and firms (other than banks) gathered by the BSP shall not be made available to any person/entity outside the BSP (public or private) except under court order or under conditions prescribed by the Monetary Board. Collective data on firms may be released to interested persons/entities.
A subsidiary is a corporation where more than 50% of the voting stock is directly/indirectly owned/controlled/held with power to vote by the bank/quasi-bank. An affiliate is a corporation where the voting stock is 50% or less owned by the bank/quasi-bank, or is related/linked via common stockholders or other factors as determined by the Monetary Board.
Transfers or acquisitions (or series of them) of at least 10% of voting shares in banks or quasi-banks require prior BSP approval. Without approval, the transfer has no legal effect, is not recognized in the institution’s books or by any government agency, and the transferor/transferee remain accountable. Actual control/management transfers before approval can lead to liability under Sections 36 and 37.
When the Monetary Board finds grounds such as: unilateral closure/dormancy for at least 60 days/suspension of deposit payment not caused by panic; insufficient realizable assets; inability to continue without probable losses to depositors/creditors; or willful violation of a cease-and-desist order involving fraud or dissipation of assets. The actions are final and executory and may not be restrained/set aside except via certiorari for excess of jurisdiction or grave abuse amounting to lack/excess of jurisdiction, filed only by stockholders representing a majority of capital within 10 days from receipt by the board of directors.
A fine of not less than P50,000 nor more than P2,000,000 or imprisonment of not less than 1 year nor more than 5 years, or both, at the court’s discretion. It also applies to officers/directors of the affiliate whose transactions are subject to examination under the Act.
A fine of not less than P100,000 nor more than P2,000,000 or imprisonment of not more than 5 years, or both, at the court’s discretion.
Administrative sanctions must be fair, consistent, and reasonable. The Monetary Board may impose fines (up to P1,000,000 per transactional violation or P100,000 per calendar day for continuing violations), suspension/restrictions (e.g., rediscounting privileges, lending/FX operations, clearing privileges, quasi-banking or special licenses), and may order cease-and-desist and correction of unsafe/irregular conditions. Preventive suspension may be imposed pending investigation with reinstatement if not decided within 120 days, subject to delays attributable to the respondent.