By Bernadette D. Nicolas, February 16 2019; Business Mirror
Image Credit to Business World
President Duterte has signed into law a measure that provides improvements to the Bangko Sentral ng Pilipinas (BSP) Charter.
Republic Act 11211 amends the Central Bank’s charter, paving the way for a more forceful inspection and disciplinary authority over the banks and other financial institutions the BSP regulates nationwide.
The BSP’s capitalization was also raised from P50 billion to P200 billion in order to meet the requirements of a central bank in the midst of a growing economy and the increasing complexity of the financial system.
Since the BSP is the bank of last resort, a higher capitalization was sought.
Aside from this, the BSP is also now more empowered to require the submission of specific reports, as well as information on the acts of officials and employees as it also boosted some penalties.
In other words, the amendments will also make it easier for the BSP to find out if the bank officials and employees are doing acts against the best interests of the depositors, clients and the economy.