REPUBLIC ACT NO. 7653

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Name REPUBLIC ACT NO. seven thousand six hundred fifty-three

SEC. three. Responsibility and Primary Objective. - The Bangko Sentral shall provide policy directions in the areas of money, banking, and credit. It shall have supervision over the operations of banks and exercise such regulatory powers as provided in this Act and other pertinent laws over the operations of finance companies and non-bank financial institutions performing quasi-banking functions, hereafter referred to as quasi-banks, and institutions performing similar functions.

The primary objective of the Bangko Sentral is to maintain price stability conducive to a balanced and sustainable growth of the economy. It shall also promote and maintain monetary stability and the convertibility of the peso.

SEC. four. Place of Business. - The Bangko Sentral shall have its principal place of business in Metro Manila, but may maintain branches, agencies and correspondents in such other places as the proper conduct of its business may require.

SEC. five. Corporate Powers. - The Bangko Sentral is hereby authorized to adopt, alter, and use a corporate seal which shall be judicially noticed; to enter into contracts; to lease or own real and personal property, and to sell or otherwise dispose of the same; to sue and be sued; and otherwise to do and perform any and all things that may be necessary or proper to carry out the purposes of this Act.

The Bangko Sentral may acquire and hold such assets and incur such liabilities in connection with its operations authorized by the provisions of this Act, or as are essential to the proper conduct of such operations.

The Bangko Sentral may compromise, condone or release, in whole or in part, any claim of or settled liability to the Bangko Sentral, regardless of the amount involved, under such terms and conditions as may be prescribed by the Monetary Board to protect the interests of the Bangko Sentral.

ARTICLE TWO. THE MONETARY BOARD

SEC. six. Composition of the Monetary Board. - The powers and functions of the Bangko Sentral shall be exercised by the Bangko Sentral Monetary Board, hereafter referred to as the Monetary Board, composed of seven members appointed by the President of the Philippines for a term of six years.

The seven members are:

(a) the Governor of the Bangko Sentral, who shall be the Chairman of the Monetary Board. The Governor of the Bangko Sentral shall be head of a department and his appointment shall be subject to confirmation by the Commission on Appointments. Whenever the Governor is unable to attend a meeting of the Board, he shall designate a Deputy Governor to act as his alternate: Provided, That in such event, the Monetary Board shall designate one of its members as acting Chairman;

(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; and

(c) five 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 shall have a term of six years, and the other two, three years.

No member of the Monetary Board may be reappointed more than once.

SEC. seven. 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.

Term

ARTICLE three. THE GOVERNOR AND DEPUTY GOVERNORS OF THE BANGKO SENTRAL

ARTICLE FOUR. OPERATIONS OF THE BANGKO SENTRAL

Punishment

Report

ARTICLE six. PROFITS, LOSSES, AND SPECIAL ACCOUNTS

ARTICLE seven. THE AUDITOR

CHAPTER two THE BANGKO SENTRAL AND THE MEANS OF PAYMENT

ARTICLE two. ISSUE OF MEANS OF PAYMENT A. CURRENCY

B. DEMAND DEPOSITS

CHAPTER THREE GUIDING PRINCIPLES OF MONETARY ADMINISTRATION BY THE BANGKO SENTRAL

ARTICLE TWO. INTERNATIONAL MONETARY STABILIZATION

ARTICLE TWO. OPERATIONS IN GOLD AND FOREIGN EXCHANGE

ARTICLE three. REGULATION OF FOREIGN EXCHANGE OPERATIONS OF THE BANKS

ARTICLE four. LOANS TO BANKING AND OTHER FINANCIAL INSTITUTIONS A. CREDIT POLICY

B. NORMAL CREDIT OPERATIONS

C. SPECIAL CREDIT OPERATION

D. EMERGENCY CREDIT OPERATION

E. CREDIT TERMS

ARTICLE V. OPEN MARKET OPERATIONS FOR THE ACCOUNT OF THE BANGKO SENTRAL

ARTICLE SIX. COMPOSITION OF BANGKO SENTRAL'S PORTFOLIO

ARTICLE SEVEN. BANK RESERVES

ARTICLE eight. SELECTIVE REGULATION OF BANK OPERATIONS

ARTICLE nine. COORDINATION OF CREDIT POLICIES BY GOVERNMENT INSTITUTIONS

ARTICLE two. THE MARKETING AND STABILIZATION OF SECURITIES FOR THE ACCOUNT OF THE GOVERNMENT

B. BANGKO SENTRAL SUPPORT OF THE GOVERNMENT SECURITIES MARKET

ARTICLE three. FUNCTIONS AS FINANCIAL ADVISOR OF THE GOVERNMENT

CHAPTER six PRIVILEGES AND PROHIBITIONS

Article two. Prohibitions

Chapter seven. Transitory Provisions

Overview

REPUBLIC ACT NO. 7653 establishes the framework under which the Bangko Sentral ng Pilipinas operates, detailing its supervisory role over banks and financial institutions and emphasizing its primary objective of maintaining monetary stability.

Key Points

1The Bangko Sentral supervises banks and regulates finance companies
2The primary objective is to maintain price stability and monetary stability
3The Monetary Board comprises members appointed by the President of the Philippines
4Members must meet specific qualifications and cannot hold other public offices
5The Bangko Sentral is empowered to establish its own rules and regulations for effective governance.

Details

Category: Law and Legal Studies

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