Tetangco submits proposals for BSP Charter

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BSP Governor Amando Tetangco Jr.

Metro Manila (CNN Philippines) — The Bangko Sentral ng Pilipinas submitted a set of proposed amendments to the BSP Charter, according to BSP Governor Amando Tetangco Jr.

Tetangco said the proposed amendments to the BSP Charter are meant to "cover the monetary stability... [and] financial stability functions" of the bank.

Among them is the increase in BSP's capitalization, which Tetangco says was first fixed in 1993.

"The economy has grown since then, the banking system has grown, so it's time to also increase the capitalization of the BSP," said Tetangco.

Other proposals include empowering the BSP to issue certificates of indebtedness,  and the restoration of access to information from the private sector.

"We want to be able to issue tradable or negotiable debt instruments... to enhance the monetary operations of the BSP," said Tetangco.

"We'd also want to see authority for the BSP to gather information -- not only from government institutes, but also from the private sector," he added.

Tetangco also sought more protection for BSP employees.

"On banking supervision, we want to see greater legal protection... so they can do their job properly," he said. "So they're not harrassed by people who are affected by official, supervisory enforcement actions."

Tetangco added that they have "always supported" an amendment to the Bank Secrecy Law, but did not mention which aspects they recommended to be changed.

"My sense is that there is greater support now for an amendment, but the details still have to be threshed out," he said.

Article 4, Sec. 25 of Repbublic Act 7653, or the New Central Bank Act, states the BSP has the authority to compel banks to present documents related to their operations. including bank deposits and accounts.

It adds, no restraining order may be issued against the BSP unless, "there is convincing proof that the action of the Bangko Sentral is plainly arbitrary and made in bad faith and the petitioner or plaintiff files with the clerk or judge of the court.. a bond executed in favor of the Bangko Sentral, in an amount to be fixed by the court."

Tetangco was appointed by then-President Gloria Macapagal Arroyo in 2005, and reappointed by Benigno Aquino III in 2011.

He served in the BSP for 43 years, including the 12 in which he was governor.