THE bill that will raise the capitalization of the Bangko Sentral ng Pilipinas (BSP) from P50 to P200 billion and strengthening its regulatory powers is set to become a law after the Senate ratified the bicameral conference committee report on the measure.
“The bicameral conference committee adopted en toto the Senate version except for one amendment. They removed the tax provision that will go to the capitalization of the BSP and simply included the dividends that they will be remitting to the government which will be made part of the increased capitalization of the BSP,” Sen. Francis “Chiz” Escudero, chair of the Senate Committee on Banks, Financial Institutions and Currencies, said on the plenary floor.
In reconciling the disagreeing provisions in the versions of the Senate and House of Representatives, Escudero told his colleagues that the declared dividends will be deposited in a special account and earmarked for the payment of BSP’s increase in capitalization.
Such dividend payments shall be released and disbursed immediately and shall continue until the increase in capitalization has been fully paid.
Senate Bill No. 1297 and House Bill No. 7742 which amended RA 7653, otherwise known as “The New Central Bank Act”, further empowers the central monetary authority’s mandate in protecting the banking system.
The BSP’s expanded supervisory power will now include other categories of financial institutions, full flexibility to conduct risk-based supervision of financial institutions and the BSP has been given more teeth in imposing administrative and criminal sanctions, to include, among other things, forfeiture of profits from unauthorized financial transactions.