Bangko Sentral wants powers lost restored in Charter revisions

The Bangko Sentral ng Pilipinas wants to restore some powers it lost through the years, a ranking official said, noting proposals to its Charter

have been drafted anew to ensure a stable financial system and a strong economy.

In a lecture before the media over the weekend, Bangko Sentral Deputy Governor Vicente Aquino said monetary authorities want the central bank to be exempt from paying taxes.

“Even central banks in the region are exempt from tax,” he noted.

The central bank was only tax-exempt within a five-year period after the Republic Act No. 7653 or the New Central Bank Act of 1993 took effect thirty years ago.

A “tax on the central bank means decreased dividends to the national government,” and forgone revenues from a lifting of levies will be offset by more payments to state coffers, the central banker said.
The Bangko Sentral also wants the government to give back its authority to obtain data from any private person or entity. Currently, it has authority to gather data from government agencies.

Restoration of authority to issue negotiable certificates of indebtedness even during normal times was also called for. “It is proposed to allow us to release our own securities, a new tool to mop up excess liquidity,” Bangko Sentral Deputy Governor Diwa Guinigundo said at the same lecture.

Authority to get private sector data and issue debt papers are aimed at putting more teeth to the central banks' monetary policy mandate.

In the area of bank regulations, the Bangko Sentral wants its personnel to have immunity from lawsuits in the course of performing official duties.

It also wants laws on deposit secrecy lifted in favor of Bangko Sentral when examining certain accounts.
“This will strengthen the capability of the BSP to detect fraudulent and irregular transactions shielded by deposit confidentiality,” said Aquino.

While it leaves investigations on alleged money launderers to the Anti-Money Laundering Council, the central bank penalizes financial institutions that do not comply with reporting rules.
These changes were drafted into the central bank's version of
a bill amending RA 7653 that was forwarded to the 16th Congress.

Other salient amendments to the central bank Charter include an additional P150 billion in capital, payable in three years.

“These amendments, once enacted into law, will empower the BSP to effectively respond to challenges and innovations of a globalized economy and perform its constitutional mandates,” said Aquino.

“An empowered BSP results in an empowered economy,” he noted.

Central bank officials have pushed for amendments to RA 7653 in the 15th Congress. The proposed changes were deliberated upon by lawmakers but were never passed. – VS, GMA News

Source: Yahoo Philippines!