MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 1827
FURTHER AMENDING REPUBLIC ACT NUMBERED TWO HUNDRED SIXTY-FIVE, AS AMENDED, OTHERWISE KNOWN AS "THE CENTRAL BANK ACT"
WHEREAS, it is the responsibility of the Central Bank of the Philippines to administer the monetary, banking and credit system of the Republic, and as the central monetary authority, to provide policy direction in the areas of money, banking and credit;
WHEREAS, monetary, banking and credit policies should be more responsive to the requirements of economic development;
WHEREAS, the Central Bank should be given greater flexibility in the use of its credit facilities to meet the demands of economic development;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order the amendment of Republic Act No. 265, as amended as follows:
Section 1. A new paragraph is hereby added after the second paragraph of Section 4 of Republic Act No. 265, as amended, to read as follows:...
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Amended by
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Presidential Decrees
Further Amending Republic Act Numbered Two Hundred Sixty-Five, As Amended, Otherwise Known As "The Central Bank Act"
Presidential Decree No. 1827
Summary of Presidential Decree No. 1827
Amendments to the Central Bank Act:
- The Central Bank may compromise, condone or release claims or settled liabilities to protect its interests. (Section 1)
- Members of the Monetary Board with personal interests must withdraw from discussions and resolutions on the matter. (Section 2)
- The Central Bank has supervising and examining departments to oversee banking institutions, non-bank financial intermediaries, and their subsidiaries and affiliates performing quasi-banking functions. (Section 3)
- Examiners can administer oaths, compel presentation of records, and examine institutions under the Central Bank's supervision. (Section 3)
- Prohibitions on Central Bank personnel include being an officer, director, employee, or stockholder of supervised institutions, receiving gifts, and revealing confidential information. (Section 4)
- Exceptions allow Monetary Board members, deputy governors, and personnel to become directors of supervised institutions to protect the Central Bank's interests. (Section 4)
- Borrowing restrictions for Central Bank personnel from supervised institutions, with exceptions for credit unions and secured loans. (Section 4)
- The Monetary Board can appoint a conservator to take charge of a bank or non-bank financial intermediary performing quasi-banking functions in a state of continuing inability or unwillingness to maintain solvency and liquidity. (Section 5)
- Procedures for insolvency proceedings, receivership, and liquidation of banks and non-bank financial intermediaries performing quasi-banking functions. (Sections 6, 7, 8, 9)
- Administrative sanctions, including fines up to 500 pesos per day, suspension or removal of directors and officers, and suspension of operations, for violations by banks and non-bank financial intermediaries performing quasi-banking functions. (Sections 10, 11)
- Modification of the peso's gold or dollar value must be made by the President upon the proposal of the Monetary Board. (Section 12)
- Reporting requirements for transactions in gold and foreign exchange. (Section 13)
- The Central Bank can grant loans or advances to banking institutions for long-term financing, bank mergers and consolidations, or rehabilitation of industries, with specific conditions and collateral requirements. (Sections 14, 15)
- The Central Bank can extend short-term loans and advances to banking institutions without collateral to provide liquidity and influence interest rates. (Section 15)
- Waiver of collateral requirements for loans to banking institutions owned by a Government financial institution, with a guarantee from the Government financial institution. (Section 16)
- Exemptions from reserve requirements for deposits and deposit substitutes with remaining maturities of two years or more, and inter-bank borrowings. (Section 17)
- Gradual increase in reserve requirements, not exceeding 4 percentage points in any 30-day period. (Section 18)
- Calculation of reserve position and penalties for reserve deficiencies. (Sections 19, 20)
- The Central Bank acts as an agent for the issue of government securities, without guaranteeing their placement or subscribing to their issue, except to replace maturing holdings. (Section 21)
- Tax exemptions for the Central Bank, its property, resources, receipts, expenditures, profits, income, contracts, deeds, documents, and transactions related to its business. (Section 22)
- Exemption from customs duties and consular fees for the importation and exportation of notes, coins, gold, metals, and equipment needed for the Central Bank's operations. (Section 23)
Amendments to the Central Bank Act:
- The Central Bank may compromise, condone or release claims or settled liabilities to protect its interests. (Section 1)
- Members of the Monetary Board with personal interests must withdraw from discussions and resolutions on the matter. (Section 2)
- The Central Bank has supervising and examining departments to oversee banking institutions, non-bank financial intermediaries, and their subsidiaries and affiliates performing quasi-banking functions. (Section 3)
- Examiners can administer oaths, compel presentation of records, and examine institutions under the Central Bank's supervision. (Section 3)
- Prohibitions on Central Bank personnel include being an officer, director, employee, or stockholder of supervised institutions, receiving gifts, and revealing confidential information. (Section 4)
- Exceptions allow Monetary Board members, deputy governors, and personnel to become directors of supervised institutions to protect the Central Bank's interests. (Section 4)
- Borrowing restrictions for Central Bank personnel from supervised institutions, with exceptions for credit unions and secured loans. (Section 4)
- The Monetary Board can appoint a conservator to take charge of a bank or non-bank financial intermediary performing quasi-banking functions in a state of continuing inability or unwillingness to maintain solvency and liquidity. (Section 5)
- Procedures for insolvency proceedings, receivership, and liquidation of banks and non-bank financial intermediaries performing quasi-banking functions. (Sections 6, 7, 8, 9)
- Administrative sanctions, including fines up to 500 pesos per day, suspension or removal of directors and officers, and suspension of operations, for violations by banks and non-bank financial intermediaries performing quasi-banking functions. (Sections 10, 11)
- Modification of the peso's gold or dollar value must be made by the President upon the proposal of the Monetary Board. (Section 12)
- Reporting requirements for transactions in gold and foreign exchange. (Section 13)
- The Central Bank can grant loans or advances to banking institutions for long-term financing, bank mergers and consolidations, or rehabilitation of industries, with specific conditions and collateral requirements. (Sections 14, 15)
- The Central Bank can extend short-term loans and advances to banking institutions without collateral to provide liquidity and influence interest rates. (Section 15)
- Waiver of collateral requirements for loans to banking institutions owned by a Government financial institution, with a guarantee from the Government financial institution. (Section 16)
- Exemptions from reserve requirements for deposits and deposit substitutes with remaining maturities of two years or more, and inter-bank borrowings. (Section 17)
- Gradual increase in reserve requirements, not exceeding 4 percentage points in any 30-day period. (Section 18)
- Calculation of reserve position and penalties for reserve deficiencies. (Sections 19, 20)
- The Central Bank acts as an agent for the issue of government securities, without guaranteeing their placement or subscribing to their issue, except to replace maturing holdings. (Section 21)
- Tax exemptions for the Central Bank, its property, resources, receipts, expenditures, profits, income, contracts, deeds, documents, and transactions related to its business. (Section 22)
- Exemption from customs duties and consular fees for the importation and exportation of notes, coins, gold, metals, and equipment needed for the Central Bank's operations. (Section 23)