MANILA - The Senate has ratified the bicameral conference committee report on a bill raising the Bangko Sentral ng Pilipinas’ (BSP) capitalization to P200 billion from P50 billion, and expanding its regulatory powers.
The bill, which was approved last Wednesday, will allow the BSP to authorize, regulate and examine entities or persons engaged in money service businesses.
It will also have expanded powers to impose administrative and criminal sanctions, and can forfeit profits from unauthorized financial transactions.
The central bank can also impose sanctions on transfers and acquisitions of substantial shares of banks and quasi-banks without its approval.
The BSP is also given regulatory powers over other categories of financial institutions, and will have full flexibility to conduct risk-based supervision of financial institutions.
“Undoubtedly, there is a need to respond to contemporary challenges in order that the BSP shall remain effective in its conduct of monetary policy and supervision of entities within the financial system,” said
Sen. Francis Escudero, chair of the Senate Committee on Banks, Financial Institutions and Currencies.