Tuesday, July 31, 2018

House passes on 3rd reading bill raising BSP capitalization

THE House of Representatives, voting 219-0, on Tuesday approved on third and final reading the bill strengthening the Bangko Sentral ng Pilipinas (BSP).

House Bill 7742 seeks to amend Republic Act 7653, “The New Central Bank Act,” by enhancing its monetary and financial stability functions.

The proposed measure raises the capital of the BSP from P50 billion to P200 billion, which will be subject to review every five years.

Adjustments to the BSP capital shall be made upon the recommendation of the Department of Finance, Department of Budget and Management and the Monetary Board.

The bill further amends RA 7653 by placing money service businesses, credit granting businesses, and payment system operators under the BSP’s regulatory and examination powers.

Under the bill, the Monetary Board will also be allowed to authorize entities or persons to engage in money services.

The BSP is mandated to promote financial stability by overseeing “the payment and settlement systems in the Philippines, including critical financial market infrastructures.”

The BSP will also be tasked to closely work with the Securities and Exchange Commission, the Insurance Commission, the Philippine Deposit Insurance Corporation and the National Government.

Among its authors were Representatives Ben P. Evardone, Henry S. Oaminal and Ma. Theresa V. Collantes.

For its part, the Senate has yet to pass on second reading, Senate Bill 1297, which likewise seeks to amend RA 7653. — Charmaine A. Tadalan

http://www.bworldonline.com/house-passes-on-3rd-reading-bill-raising-bsp-capitalization/

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