EXECUTIVE ORDER NO. 698

: The Central Bank of the Philippines is mandated by the Constitution to provide policy direction in the areas of money, banking, and credit.
: The Central Bank is authorized to use credit accommodations to banking institutions to regulate the volume, costs, availability, and character of bank credit and to provide the banking system with liquid funds in times of need.
: They fixed the ceilings, loan values, and rediscount rates of the Central Bank for preferential rediscounting and the lending rates that banks may charge on paper rediscounted with the Central Bank.
: They hampered interest rate reforms and monetary management.
: These ceilings, loan values, and rediscount rates are made directory, meaning they may be modified by the Monetary Board whenever warranted by prevailing economic conditions.
: The Monetary Board is authorized to modify them in accordance with the provisions of the Central Bank's Charter.
: All inconsistent issuances and regulations are repealed or modified accordingly.
: It took effect immediately upon signing on June 25, 1981.
: 'Directory' means that the prescribed ceilings, loan values, and rediscount rates are guidelines that are not absolute and can be adjusted by the Monetary Board as economic conditions require.