Governor Amando Tetangco Jr. of the Bangko Sentral ng Pilipinas said the proposed amendments to the BSP charter are tailored to strengthen the central bank's monetary stability capability, financial stability capability and strengthen its corporate and financial position.
Among others, the amendment is seeking for the increase by P150 billion of the BSP's capitalization from the P50 billion approved by Congress upon the BSP's institution in 1993.
Among the roles of the BSP is to ensure sustainable growth and price stability in the country.
In an earlier presentation, the BSP said the Charter amendments aims to give the central bank more solid footing since “the scale and complexity of the responsibilities of the BSP have been magnified by the growth of the Philippine economy and the expansion of its financial system.
It said that the conduct of monetary policy involves a range of financial risks and costs that results from policy decisions of the BSP, hence, the need to further capitalize the central bank.
Under the New Central Bank Act, the BSP should be given a P50 billion capitalization by the government.
Only P10 billion was given to the BSP within its first year in operations.
It is only under the current administration that the BSP got the remaining P40 billion of its capitalization, P10 billion of which was given in December 2011, P20 billion in December 2012, and P10 billion last week.
Aside from the higher capitalization, the BSP is asking lawmakers to allow the enhancement of central bank's credit operations, revive its authority to get data from any private person or entity and to issue negotiable securities, and give it the oversight of payment and settlement systems and operators among others.
Tetangco said the BSP Charter was approved two decades ago and “so many things have happened.” He added that, in terms of the proposed amendments, what they want to do is make the BSP a modern central bank given the changes in the financial landscape globally, regionally and domestically.*PNA