Increased Members of Monetary Board EO No. 16

Section 1 amends Section 5 of Republic Act No. 265, as amended.
Section 1 revises Section 5 to specify that the Monetary Board is composed of seven members.
The amendment reshapes the Board’s membership structure by modifying and expanding the relevant member categories.
Executive Order No. 16 expressly includes the Minister of the Budget as part of the Monetary Board.

Section 5 requires that the Central Bank’s powers and functions are exercised by a Monetary Board with seven members.
The Governor serves as Chairman and is appointed for a term of six years by the President of the Philippines.
The Senior Deputy Governor acts as Chairman whenever the Governor is unable to attend a Board meeting.
The Minister of Finance is a member, with the rule that a deputy may attend when the Minister is unable to attend.
The Director-General of the National Economic and Development Authority (NEDA) is a member, with the rule that a deputy director general may attend when the Director-General is unable to attend.

The Chairman of the Board of Investments is a member, and a designated Board of Investments governor attends as alternate when the Chairman is unable to attend.
The Minister of the Budget is a member, and a designated deputy attends as alternate when the Minister is unable to attend.
In lieu of officials named in Section 5(c) or Section 5(d), the President may determine a head of another financial or economic agency or department of the Government to be a member.
The Monetary Board includes two part-time members from the private sector, appointed by the President for terms of four years.

Section 5(g) provides that the first private sector member appointed under the private-sector category serves staggered terms of two years and four years, respectively.
The staggering is applied to ensure the transition of membership terms within the private-sector positions.

Section 5 requires the President, in making appointments to the Monetary Board, to base selection on the appointee’s integrity, experience, and expertise.
Section 1 maintains the appointment criterion for Monetary Board appointees as part of the amended Section 5 framework.
The Governor’s role as Chairman, the Finance/NEDA/BOI/Budget roles, and the private-sector appointments are all governed by the amended composition structure.