REPUBLIC ACT NO.

7653: THE NEW CENTRAL BANK ACT

CHAPTER I. Establishment and Organization of the Bangko Sentral ng Pilipinas Article I. Creation, Responsibilities and Corporate Powers of the Bangko Sentral s.1. Declaration of Policy s.2. Creation of the Bangko Sentral s.3. Responsibility and Primary Objective s.4. Place of Business s.5. Corporate Powers Article II. The Monetary Board s.6. Composition of the Monetary Board s.7. Vacancies s.8. Qualifications s.9. Disqualifications s.10. Removal s.11. Meetings s.12. Attendance of the Deputy Governors s.13. Salary s.14. Withdrawal of Persons Having a Personal Interest s.15. Exercise of Authority s.16. Responsibility Article III. The Governor and Deputy Governors of the Bangko Central s.17. Powers and Duties of the Governor s.18. Representation of the Monetary Board and the Bangko Sentral s.19. Authority of the Governor in Emergencies s.20. Outside Interests of the Governor and the Full-time Members of the Board s.21. Deputy Governors Article IV. Operations of the Bangko Central

s.22. Research and Statistics s.23. Authority to Obtain Data and Information s.24. Training of Technical Personnel s.25. Supervision and Examination s.26. Bank Deposits and Investments s.27. Prohibitions s.28. Examination and Fees s.29. Appointment of Conservator s.30. Proceedings in Receivership and Liquidation s.31. Distribution of Assets s.32. Disposition of Revenues and Earnings s.33. Disposition of Banking Franchise s.34. Refusal to Make Reports or Permit Examination s.35. False Statement s.36. Proceedings Upon Violation of This Act and Other Banking Laws, Rules, Regulations, Orders or Instructions s.37. Administrative Sanctions on Banks and Quasi-banks s.38. Operating Departments of the Bangko Sentral Article V. Reports and Publications s.39. Reports and Publications s.40. Annual Report s.41. Signatures on Statements Article VI. Profits, Losses, and Special Accounts s.42. Fiscal Year s.43. Computation of Profits and Losses s.44. Distribution of Net Profits s.45. Revaluation Profits and Losses s.46. Suspense Accounts

Article VII. The Auditor s.47. Appointment and Personnel CHAPTER II. The Banko Sentral and the Means of Payment Article I. The Unit of Monetary Value s.48. The Peso Article II. Issue of Means of Payment A. Currency s.49. Definition of Currency s.50. Exclusive Issue Power s.51. Liability for Notes and Coins s.52. Legal Tender Power s.53. Characteristics of the Currency s.54. Printing of Notes and Minting of Coins s.55. Interconvertibility of Currency s.56. Replacement of Currency Unit for Circulation s.57. Retirement of Old Notes and Coins B. Demand Deposits s.58. Definition s.59. Issue of Demand Deposits s.60. Legal Character CHAPTER III. Guiding Principles of Monetary Administration by the Bangko Sentral Article I. Domestic Monetary Stabilization s.61. Guiding Principle s.62. Power to Define Terms s.63. Action When Abnormal Movements Occur in the Monetary Aggregates, Credit, or Price Level Article II. International Monetary Stabilization s.64. International Monetary Stabilization

s.65. International Reserves s.66. Composition of the International Reserves Article II. International Monetary Stabilization s.67. Guiding Principle s.68. International Reserve s.69. Composition of the International Reserve s.70. Action When the International Stability of the Peso is Threatened CHAPTER IV. Instruments of Central Bank Action Article I. General Criteria s.71. Means of Action Article II. Operations in Gold and Foreign Exchange s.72. Purchases and Sales of Gold s.73. Acquisition of Inconvertible Currencies s.74. Exchange Rates s.75. Operations with Foreign Entities Article III. Regulation of Foreign Exchange Operations of the Banks s.76. Foreign Exchange Holdings of the Banks s.77. Requirement of Balanced Currency Position s.78. Regulation of Non-spot Exchange Transactions s.79. Other Exchange Profits and Losses s.80. Information on Exchange Operations Article IV. Loans to Banking and Other Financial Institutions A. Credit Policy s.81. Guiding Principles B. Normal Credit Operations s.82. Authorized Types of Operations C. Special Credit Operation

s.83. Loans for Liquidity Purposes D. Emergency Credit Operation s.84. Emergency Loans and Advances E. Credit Terms s.85. Interest and Rediscount s.86. Endorsement s.87. Repayment of Credits s.88. Other Requirements s.89. Provisional Advances to the National Government Article V. Open Market Operations for the Account of the Bangko Sentral s.90. Principles of Open Market Operations s.91. Purchases and Sales of Government Securities s.92. Issue and Negotiation of Bangko Sentral Obligations Article VI. Composition of Bangko Sentrals Portfolio s.93. Review of the Bangko Sentrals Portfolio Article VII. Bank Reserves s.94. Reserve Requirements s.95. Definition of Deposit Substitutes s.96. Required Reserves Against Free Deposits s.97. Required Reserves Against Foreign Currency Deposits s.98. Reserves Against Unused Balances of Overdraft Lines s.99. Increase in Reserve Requirements s.100. Computation on Reserves s.101. Reserve Deficiencies s.102. Interbank Settlement s.103. Exemption from Attachment and Other Purposes Article VIII. Selective Regulation of Bank Operations

s.104. Guiding Principle s.105. Margin Requirements Against Letters of Credit s.106. Required Security Against Bank Loans s.107. Portfolio Ceilings s.108. Minimum Capital Ratios Article IX. Coordination of Credit Policies by Government Institutions s.109. Coordination of Credit Policies CHAPTER V. Functions as Banker and Financial Advisor of the Government Article I. Functions as Banker of the Government s.110. Designation of Bangko Sentral as Banker of the Government s.111. Representation with the International Monetary Fund s.112. Representation with Other Financial Institutions s.113. Official Deposits s.114. Fiscal Operations s.115. Other Banks as Agents of the Bangko Sentral s.116. Remuneration for Services Article II. The Marketing and Stabilization of Securities for the Account of the Government A. The Issue and Placing of Government Securities s.117. Issue of Government Obligations s.118. Methods of Placing Government Securities s.119. Servicing and Redemption of the Public Debt B. Bangko Sentral Support of the Government Securities Market s.120. The Securities Stabilization Fund s.121. Resources of the Securities Stabilization Fund s.122. Profits and Losses of the Fund Article III. Functions as Financial Advisor of the Government s.123. Financial Advice on Official Credit Operations

s.124. Representation on the National Economic and Development Authority CHAPTER VI. Privileges and Prohibitions Article I. Privileges s.125. Tax Exemptions s.126. Exemption from Customs Duties s.127. Applicability of the Civil Service Law Article II. Prohibitions s.128. Prohibitions CHAPTER VII. Transitory Provisions s.129. Phase-out of Fiscal Agency Functions s.130. Phase-out of Regulatory Powers Over the Operations of Finance Corporations and Other Institutions Performing Similar Functions s.131. Implementing Details s.132. Transfer of Assets and Liabilities s.133. Mandate to Organize s.134. Separation Benefits s.135. Repealing Clause s.136. Transfer of Powers s.137. Separability Clause s.138. Effectivity Clause