C. Bangko Sentral ng Pilipinas (RA 7653, as amended by RA 11211)

The Bangko Sentral ng Pilipinas (RA 7653, as amended by RA 11211)

The Bangko Sentral ng Pilipinas (Bangko Sentral) is established as an independent central monetary authority and a body corporate, inheriting all powers, duties, and functions of the Central Bank of the Philippines not inconsistent with Republic Act No. 7653, Section 136¹². Its capital is Two hundred billion pesos (₱200,000,000,000), fully subscribed by the Philippine Government, with the increase funded solely from declared dividends deposited in a special account in the General Fund³. The primary objective of the Bangko Sentral is to maintain price stability conducive to a balanced and sustainable growth of the economy, alongside promoting and maintaining monetary stability and the convertibility of the peso⁴.

The Bangko Sentral provides policy directions in the areas of money, banking, and credit, supervising the operations of banks and regulating finance companies and quasi-banks⁴. Upon a report by the head of the supervising or examining department, the Monetary Board may summarily and without prior hearing prohibit an institution from doing business and designate the Philippine Deposit Insurance Corporation (PDIC) as receiver if a bank or quasi-bank: (a) has notified the Bangko Sentral or publicly announced a unilateral closure, has been dormant for at least sixty (60) days, suspended deposit payments, or cannot pay liabilities as they fall due in the ordinary course of business (excluding panic-induced inability); (b) has insufficient realizable assets to meet its liabilities; (c) cannot continue in business without involving probable losses to depositors or creditors; or (d) has willfully violated a final cease and desist order involving fraud or asset dissipation⁵.

In connection with loans and advances, the Bangko Sentral may deputize its lawyers to conduct public auctions in extrajudicial foreclosures under Act No. 3135, or, with court approval, to act as special sheriffs in judicial foreclosures⁶. No court may issue a restraining order or injunction enjoining such foreclosure unless the applicant posts a bond equivalent to the total claim of the Bangko Sentral, and any such injunction shall be refused or dissolved if the Bangko Sentral files a bond in the form of a Bangko Sentral check in twice the amount of the applicant's bond⁶.