‘Enhancements’ to address major concerns
By Paolo G. Montecillo
Philippine Daily Inquirer
7:56 pm | Sunday, January 26th, 2014
The Chamber of Thrift Banks (CTB) has thrown its support behind the controversial amendments to the central bank’s two-decade-old charter, which has some sectors worried over potential “superpowers” that may give regulators the ability to overreach.
The industry group, however, admitted that some “enhancements” might be necessary instead of adopting the Bangko Sentral ng Pilipinas (BSP) version of the bill lock, stock and barrel.
“The CTB is one with the BSP in its effort to address the most fundamental challenge of achieving and maintaining a strong financial system and rapid economic growth for the country,” the CTB said in a statement.
CTB executive director Suzanne Felix, for her part, said the CTB recognized some concerns raised by other sectors over certain provisions of the proposed BSP charter amendments.
“CTB appreciates that there is a need to respond to contemporary challenges by amending the present BSP charter in order that the BSP remains effective in its conduct of monetary policy and supervision of financial institutions and enable it to build a robust system,” Felix said.
“These concerns can be easily addressed by enhancing certain provisions of the bill without affecting the supervisory framework envisioned by the proposed law,” she added.
The group declined to specify what changes it thought might be necessary to make the BSP’s charter amendments more acceptable.
Proposed amendments to the BSP’s 1993 charter are pending in both houses of Congress.
Changes in the charter include a four-fold increase in the central bank’s capitalization to P200 billion, reviving the BSP’s ability to issue its own debt securities, granting immunity from lawsuits to BSP examiners and certain tax exemptions.
However, some sectors have raised concerns over proposals to give the BSP the power to look into corporate bank accounts to curb shady transactions between banks and their sister firms within conglomerates.
Senior BSP officials had argued that lifting the veil of deposit secrecy for some transactions would help ensure that depositors’ funds were not being used by corporations to bolster their own books.
CTB’s Felix also said that these amendments would be beneficial not only to the banking industry, but to the general public as well, as they sought to strengthen the tools which the BSP exercises in performing its mandates, including protecting savings of depositors.
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