Expanding BSP’s Regulatory Power under the New Central Bank Act, as amended

Republic Act No. 11211 (R.A. No. 11211), otherwise known as “An Act Amending the New Central Bank Act” and which became effective on March 01, 2019, seeks to strengthen the Bangko Sentral ng Pilipinas (BSP) by expanding its regulatory power.

Under the New Central Bank Act, the primary objective of the BSP is to maintain price stability conducive to a balanced and sustainable growth of the economy. Under the amended law, the same has been expanded to include price stability for a balanced and sustainable growth of employment.

The BSP shall now wield regulatory and examination powers not only over quasi-banking operations of non-bank financial institutions but also over money service businesses, credit granting businesses, and payment system operators. In connection with this, the Monetary Board is empowered to authorize entities or persons to engage in money service businesses.

In achieving these objectives, the BSP’s responsibilities now include promoting financial stability, overseeing the payment and settlement systems in the Philippines, and promoting broad and convenient access to high quality financial services and consider the interest of the public.

To read the entire text of R.A. No. 11211, click here.