THE MONETARY BOARD
ESTABLISHMENT AND
ORGANIZATION OF THE
BANGKO SENTRAL NG PILIPINAS
The New Central Bank Act (RA 7653)
ARTICLE II - THE MONETARY BOARD
The BSP's Organizational
Structure
SECTION 6.
Composition of the Monetary Board.
The powers and functions of the Bangko Sentral
shall be exercised by the Bangko Sentral
Monetary Board, or referred to as the Monetary
Board, which composed of seven (7) members
appointed by the President of the Philippines for a
term of six (6) years.
The seven (7) members are:
(a) the Governor of the Bangko Sentral, who shall
be the Chairman of the Monetary Board.
SECTION 6.
Composition of the Monetary Board.
(b) a member of the Cabinet to be designated by
the President of the Philippines.
- Whenever the designated Cabinet Member is unable to attend a
meeting of the Board, he shall designate an Undersecretary in his
Department to attend as his alternate;
(c) five (5) members who shall come from the
private sector, all of whom shall serve full-time:
- Provided, however, That of the members first appointed under
the provisions of this subsection, three (3) shall have a term of six (6)
years, and the other two (2), three (3) years.
SECTION 7. Vacancies
Any vacancy in the Monetary Board created by the
death, resignation, or removal of any member shall be
filled by the appointment of a new member to
complete the unexpired period of the term of the
member concerned.
SECTION 8. Qualifications
The members of the Monetary Board must be natural-
born citizens of the Philippines, at least thirty-five
(35) years of age, with the exception of the Governor
who should at least be forty (40) years of age, of good
moral character, of unquestionable integrity, of known
probity and patriotism, and with recognized
competence in social and economic disciplines.
SECTION 9. Disqualifications.
1. In addition to the disqualifications imposed by
Republic Act No. 6713, a member of the Monetary
Board is disqualified from being a director, officer,
employee, consultant, lawyer, agent or stockholder
of any bank, quasi-bank or any other institution
which is subject to supervision or examination by
the Bangko Sentral.
2. The members of the Monetary Board coming from
the private sector shall not hold any other public
office or public employment during their tenure.
SECTION 9. Disqualifications.
3. No person shall be a member of the Monetary Board
if he has been connected directly with any
multilateral banking or financial institution or has a
substantial interest in any private bank in the
Philippines, within one (1) year prior to his
appointment;
4. No member of the Monetary Board shall be
employed in any such institution within two (2) years
after the expiration of his term except when he serves
as an official representative of the Philippine
Government to such institution.
SECTION 10. Removal.
The President may remove any member of the
Monetary Board for any of the following reasons:
(a) If the member is subsequently disqualified under the
provisions of Section 8 of this Act; or
(b) If he is physically or mentally incapacitated that he
cannot properly discharge his duties and
responsibilities and such incapacity has lasted for
more than six (6) months; or
SECTION 10. Removal.
The President may remove any member of the
Monetary Board for any of the following reasons:
(c) If the member is guilty of acts or operations which
are of fraudulent or illegal character or which are
manifestly opposed to the aims and interests of the
Bangko Sentral; or
(d) If the member no longer possesses the qualifications
specified in Section 8 of this Act.
SECTION 11. Meetings.
The Monetary Board shall meet at least once a week.
The Board may be called to a meeting by the Governor
of the BSP or by two (2) other members of the Board.
The presence of four (4) members shall constitute a
quorum: Provided, That in all cases the Governor or
his duly designated alternate shall be among the four
(4).
Unless otherwise provided in this Act, all decisions of
the Monetary Board shall require the concurrence of
at least four (4) members.
SECTION 12.
Attendance of the Deputy Governors.
The Deputy Governors may attend the meetings of the
Monetary Board with the right to be heard.
SECTION 13. Salary.
The salary of the Governor and the members of the
Monetary Board from the private sector shall be fixed
by the President of the Philippines at a sum
commensurate to the importance and responsibility
attached to the position.
SECTION 14. Withdrawal of
Persons Having a Personal Interest.
In addition to the requirements of Republic Act No.
6713, any member of the Monetary Board with
personal or pecuniary interest in any matter in the
agenda of the Monetary Board shall DISCLOSE his
interest to the Board and shall RETIRE from the
meeting when the matter is taken up. The decision
taken on the matter shall be made public. The
minutes shall reflect the disclosure made and the
retirement of the member concerned from the
meeting.
SECTION 15. Exercise of Authority.
The major functions of the Monetary Board include the
power to:
1.) Issue rules and regulations it considers necessary for
the effective discharge of the responsibilities and
exercise of the powers vested in it.
2.) Direct the management, operations, and
administration of Bangko Sentral, organize its
personnel and issue such rules and regulations as it
may deem necessary or desirable for this purpose.
SECTION 15. Exercise of Authority.
The major functions of the Monetary Board include the
power to:
3.) Establish a human resource management system
which governs the selection, hiring, appointment,
transfer, promotion, or dismissal of all personnel.
4.) Adopt an annual budget for and authorize such
expenditures by Bangko Sentral as are in the interest
of the effective administration and operations of
Bangko Sentral in accordance with applicable laws and
regulations.
SECTION 15. Exercise of Authority.
The major functions of the Monetary Board include the
power to:
5.) Indemnify its members and other officials of Bangko
Sentral, including personnel of the departments
performing supervision and examination functions,
against all costs and expenses reasonably incurred by
such persons in connection with any civil or criminal
action, suit or proceeding, to which any of them may
be made a party by reason of the performance of his
functions or duties, unless such members or other
officials is found to be liable for negligence or
misconduct.
SECTION 16. Responsibility.
Members of the Monetary Board, officials, examiners,
and employees of the Bangko Sentral who willfully
violate this Act or who are guilty of negligence, abuses
or acts of malfeasance or misfeasance or fail to
exercise extraordinary diligence in the performance of
his duties shall be held liable for any loss or injury
suffered by the Bangko Sentral or other banking
institutions as a result of such violation, negligence,
abuse, malfeasance, misfeasance or failure to
exercise extraordinary diligence.
SECTION 16. Responsibility.
According to Article II, Section 16 of the New Central Bank
Act (RA 7653), the following should be exercised not only
by the Monetary Board but also by all of the employees,
officers and members of BSP.
(1) the disclosure of any information of a
confidential nature, or any information on the
discussions or resolutions of the Monetary Board,
or about the confidential operations of the Bangko
Sentral, unless the disclosure is in connection with
the performance of official functions with the
Bangko Sentral, or is with prior authorization of
the Monetary Board or the Governor.
SECTION 16. Responsibility.
(2) the use of such information for personal gain or
to the detriment of the Government, the Bangko
Sentral or third parties: Provided, however, That
any data or information required to be submitted
to the President and/or the Congress, or to be
published under the provisions of this Act shall not
be considered confidential.
THE GOVERNOR
POWERS & DUTIES:
Specifically, the Governor:
Prepares the agenda for the meetings of the Monetary
Board and submits policy recommendations for
consideration of the Board.
Executes and administers policies and measures
approved by the Monetary Board.
Appoints and fixes the remunerations and other
emoluments of personnel, as well as imposes
disciplinary measure upon personnel of the Bangko
Sentral;
POWERS & DUTIES:
Renders opinions, decision, or ruling, which shall be
final and executory until reversed or modified by the
Monetary Board, on matters regarding application or
enforcement of laws pertaining to institutions
supervised by the BSP and laws pertaining to quasi-
banks, as well as regulations, policies or instructions
issued by the Monetary Board, and the
implementation thereof.
Exercises such other powers as may be vested in him
by the Monetary Board.
The Governor is the principal representative of the
Monetary Board and of the BSP.
