Press Release June 14, 2009 ANGARA PUSHES FOR REFORMS IN BANGKO SENTRAL NG PILIPINAS Senator Edgardo J. Angara today suggested that the Bangko Sentral ng Pilipinas (BSP) should adapt various international best practices in banking supervision to better protect the interest of the depositors and to avoid losses in public funds. "Experience in the past highlighted the inability of the Bangko Sentral ng Pilipinas to deal effectively and expeditiously with problem banks. The authority of the BSP over problem banks; in general, is limited to the grant of emergency advances in case of illiquidity, or closure in case of insolvency. Prompt corrective actions cannot be implemented due to the absence of clear and strong legal basis. Such inability of the BSP often causes losses of hard-earned money of the depositors and also losses of public funds," said Angara who chairs the Senate Finance Committee. He added, "To better protect the interest of the depositors and to avoid losses of the public funds, the BSP must therefore adapt various international best practices in banking supervision and other measures that will strengthen the regulatory and supervisory powers of the BSP over banks and other financial institutions." Angara said that this reform must be fast-tracked one the Senate resumes session in July. He said that although the BSP leadership has already instituted various reforms in the financial sector, comprehensive reforms must still be undertaken. He added that the Legacy incident shows regulatory gaps in BSP's supervision capacity and necessary reforms should be undertaken. Angara recently filed a SB 871 seeking to amend the BSP charter. The bill allows BSP to adopt the following international best practices, among others, in banking supervision and other measures that will strengthen the regulatory and supervisory powers of the BSP over banks and other financial institutions:
"This bill is aimed at providing better protection to the public, particularly the depositors and creditors of BSP's supervised institutions," added Angara. |
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