Press Release July 13, 2010
Adapting international best practices in banking To reform the country's financial sector Senator Edgardo J. Angara emphasized the need for the amendment of the Bangko Sentral ng Pilipinas (BSP) charter for it to adapt various international best practices in banking supervision, which will allow it to better protect the interest of the depositors and avoid losses of public funds. "The authority of the BSP over troubled 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 public funds, the BSP should 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." Through the amendments the Central Bank can use transparency mechanisms that can give it more teeth to supervise formal and informal remittance firms. This in turn shall protect OFWs from usurious practices in money transfer. The proposed measure will allow 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: 1. The principle of consolidated supervision;
"This will provide better protection to the public, particularly the depositors and creditors of BSP's supervised institutions," added Angara. |
Wednesday, April 24
|