QuestionsQuestions (Republic Act No. 11211)
To maintain price stability conducive to balanced and sustainable economic growth and employment; also to promote and maintain monetary stability and the convertibility of the peso.
The increase in capitalization must be funded solely from the declared dividends of BSP in favor of the National Government, deposited in a special account in the General Fund and earmarked for the capitalization payment, released immediately until fully paid.
BSP must promote financial stability and closely work with the National Government, including (among others) the Department of Finance, Securities and Exchange Commission, Insurance Commission, and PDIC.
Quorum requires the presence of four (4) members, with the Governor or his duly designated alternate among them. Unless otherwise provided, Monetary Board decisions require concurrence of at least four (4) members.
Yes. Meetings may be conducted through modern technologies such as teleconferencing and videoconferencing.
They are indemnified for reasonable costs and expenses in civil/criminal actions/proceedings arising from performance of functions, unless finally adjudged liable for willful violation of the Act, performed in evident bad faith, or with gross negligence. For settlements, indemnification is limited to matters where external counsel advises no willful violation, bad faith, or gross negligence.
It applies similar responsibility rules to Board members and BSP personnel for improper disclosure of confidential information/discussions/resolutions, unless disclosure is in connection with official functions with BSP, or with prior authorization. It also covers use of such information for personal gain or to the detriment of BSP/government/third parties, while data required to be submitted to President/Congress or published under the Act are not considered confidential.
Data on individuals and firms (other than banks) may not be made available outside 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.
Transfers/acquisitions (or series thereof) of at least 10% of voting shares require prior BSP approval. Without BSP approval, the transfer has no legal effect and is not recognized in the institution’s books or by government agencies; the transferor/transferee remain accountable.
When the bank/quasi-bank has unilaterally closed or announced closure; is dormant for at least 60 days or suspended deposit/deposit substitute payments; is unable to pay liabilities as they become due (except due to extraordinary demands induced by financial panic); has insufficient realizable assets; cannot continue without probable losses to depositors/creditors; or has willfully violated a final cease-and-desist order under Section 37 involving fraud/dissipation of assets.
Actions are final and executory and may not be restrained/set aside except on petition for certiorari on grounds of excess of jurisdiction or grave abuse of discretion amounting to lack/excess of jurisdiction. The certiorari petition may be filed only by stockholders of record representing the majority of the capital stock within 10 days from receipt of the order.
Sections 31 and 32 are deleted. Students should note that deleting provisions affects the statutory scheme for BSP actions/receivership/liquidation and other related processes formerly covered by those sections; analysis must rely on the remaining/new sections.
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. It also applies to officers/directors of affiliate companies whose transactions are subject to examination under the Act.
Willful making of a false or misleading statement on a material fact to BSP or its examiners is punished by fine of not less than P100,000 nor more than P2,000,000, or imprisonment of not more than 5 years, or both.
Possible sanctions include fines (up to specified limits), suspension of rediscounting privileges/access to credit facilities, suspension of lending/FX operations or authority to accept new deposits/make new investments, suspension of interbank clearing privileges, and suspension or revocation of quasi-banking or other special licenses.
The Monetary Board may preventively suspend directors/officers/employees pending investigation when warranted. If the case is not finally decided within 120 days from the suspension date, the person shall be reinstated, unless delay is due to the fault/negligence/petition of the suspended person.