Republic Act No. 7653 - BSP Charter Booklet PDF

# REPUBLIC ACT NO. 7653 ## AS AMENDED BY REPUBLIC ACT NO. 11211 This BSP Charter booklet was prepared by the Office of the General Counsel and Legal Services and Corporate Affairs Office. ## Table of Contents ### CHAPTER I - ESTABLISHMENT AND ORGANIZATION OF THE BANGKO SENTRAL NG PILIPINAS ####...

# REPUBLIC ACT NO. 7653 ## AS AMENDED BY REPUBLIC ACT NO. 11211 This BSP Charter booklet was prepared by the Office of the General Counsel and Legal Services and Corporate Affairs Office. ## Table of Contents ### CHAPTER I - ESTABLISHMENT AND ORGANIZATION OF THE BANGKO SENTRAL NG PILIPINAS #### ARTICLE I – CREATION, RESPONSIBILITIES AND CORPORATE POWERS OF THE BANGKO SENTRAL - SECTION 1. Declaration of Policy - SECTION 2. Creation of the Bangko Sentral - SECTION 3. Responsibility and Primary Objective - SECTION 4. Place of Business - SECTION 5. Corporate Powers #### ARTICLE II – THE MONETARY BOARD - SECTION 6. Composition of the Monetary Board - SECTION 7. Vacancies - SECTION 8. Qualifications - SECTION 9. Disqualifications - SECTION 10. Removal - SECTION 11. Meetings - SECTION 12. Attendance of the Deputy Governors - SECTION 13. Salary - SECTION 14. Withdrawal of Persons Having a Personal Interest - SECTION 15. Exercise of Authority - SECTION 16. Responsibility #### ARTICLE III – THE GOVERNOR AND DEPUTY GOVERNORS OF THE BANGKO SENTRAL - SECTION 17. Powers and Duties of the Governor - SECTION 18. Representation of the Monetary Board and the Bangko Sentral - SECTION 19. Authority of the Governor in Emergencies - SECTION 20. Outside Interests of the Governor and the Full-time Members of the Board - SECTION 21. Deputy Governors #### ARTICLE IV – OPERATIONS OF THE BANGKO SENTRAL - SECTION 22. Research and Statistics - SECTION 23. Authority to Obtain Data and Information - SECTION 24. Training of Technical Personnel - SECTION 25. Supervision and Examination - SECTION 25-A. Authority to Approve Transfer of Shares - SECTION 26. Bank Deposits and Investments - SECTION 27. Prohibitions - SECTION 28. Examination and Fees - SECTION 28-A. Bangko Sentral Coordination - SECTION 29. Appointment of Conservator - SECTION 30. Proceedings in Receivership and Liquidation - SECTION 31. Deleted - SECTION 32. Deleted - SECTION 33. Disposition of Banking Franchise - SECTION 34. Refusal to Make Reports or Permit Examination - SECTION 35. False Statement - SECTION 36. Proceedings Upon Violation of This Act and Other Banking Laws, Rules, Regulations, Orders or Instructions - SECTION 37. Administrative Sanctions on Supervised Entities - SECTION 38. Operating Departments of the Bangko Sentral - SECTION 38-A. Issuance of Injunctive Relief Against Bangko Sentral Actions - SECTION 39. Reports and Publications - SECTION 40. Annual Report - SECTION 41. Signatures on Statements #### ARTICLE VI – PROFITS, LOSSES, AND SPECIAL ACCOUNTS - SECTION 42. Fiscal Year - SECTION 43. Computation of Profits and Losses - SECTION 43-A. Bangko Sentral Reserve Fund - SECTION 44. Distribution of Net Profits - SECTION 45. Revaluation Profits and Losses - SECTION 46. Suspense Accounts - SECTION 47. Appointment and Personnel ### CHAPTER II #### THE BANGKO SENTRAL AND THE MEANS OF PAYMENT #### ARTICLE I – THE UNIT OF MONETARY VALUE - SECTION 48. The Peso - SECTION 49. Definition of Currency - SECTION 50. Exclusive Issue Power - SECTION 51. Liability for Notes and Coins - SECTION 52. Legal Tender Power - SECTION 53. Characteristics of the Currency - SECTION 54. Printing of Notes and Mining of Coins - SECTION 55. Interconvertibility of Currency - SECTION 56. Replacement of Currency Unfit for Circulation - SECTION 57. Retirement of Old Notes and Coins - SECTION 58. Definition - SECTION 59. Issue of Demand Deposits - SECTION 60. Legal Character ### CHAPTER III #### GUIDING PRINCIPLES OF MONETARY ADMINISTRATION BY THE BANGKO SENTRAL #### ARTICLE I – DOMESTIC MONETARY STABILIZATION - SECTION 61. Guiding Principle - SECTION 62. Power to Define Terms - SECTION 63. Action When Abnormal Movements Occur in the Price Level #### ARTICLE II – INTERNATIONAL MONETARY STABILIZATION - SECTION 64. International Monetary Stabilization - SECTION 65. International Reserves - SECTION 66. Composition of the International Reserves - SECTION 67. Action When the International Stability of the Peso Is Threatened ### CHAPTER IV #### INSTRUMENTS OF BANGKO SENTRAL ACTION #### ARTICLE I – GENERAL CRITERION - SECTION 68. Means of Action #### ARTICLE II – OPERATIONS IN GOLD AND FOREIGN EXCHANGE - SECTION 69. Purchases and Sales of Gold - SECTION 70. Purchases and Sales of Foreign Exchange - SECTION 71. Foreign Asset Position of the Bangko Sentral - SECTION 72. Emergency Restrictions on Exchange Operations - SECTION 73. Acquisition of Inconvertible Currencies - SECTION 74. Exchange Rates - SECTION 75. Operations with Foreign Entities #### ARTICLE III – REGULATIONS OF FOREIGN EXCHANGE OPERATIONS OF THE BANKS - SECTION 76. Foreign Exchange Holdings of the Banks - SECTION 77. Requirement of Balanced Currency Position - SECTION 78. Regulation of Non-spot Exchange Transactions - SECTION 79. Other Exchange Profits and Losses - SECTION 80. Information on Exchange Operations #### ARTICLE IV – LOANS TO BANKING AND OTHER FINANCIAL INSTITUTIONS - SECTION 81. Guiding Principles - SECTION 82. Authorized Types of Operations - SECTION 83. Loans for Liquidity Purposes - SECTION 84. Emergency Loans and Advances - SECTION 85. Interest and Rediscount - SECTION 86. Endorsement - SECTION 87. Repayment of Credits - SECTION 88. Other requirements - SECTION 88-A. Exemption of Collaterals from Attachments, Executions and Other Restrictions - SECTION 88-B. Deputization of Legal Staff in Case of Foreclosures - SECTION 88-C. Right of Redemption of Foreclosed Real Property; Right of Possession During Redemption Period - SECTION 88-D. Unsecured Bangko Sentral Claims - SECTION 89-A. Financial Facilities for Islamic Banks - SECTION 89-B. Loans to the Philippine Deposit Insurance Corporation (PDIC) #### ARTICLE V – OPEN MARKET OPERATIONS FOR THE ACCOUNT OF THE BANGKO SENTRAL - SECTION 90. Principles of Open Market Operations - SECTION 91. Purchases and Sales of Government Securities - SECTION 92. Issue and Negotiation of Bangko Sentral Obligations #### ARTICLE VI – COMPOSITION OF BANGKO SENTRAL’S PORTFOLIO - SECTION 93. Review of the Bangko Sentral’s Portfolio - SECTION 94. Reserve Requirements - SECTION 95. Definition of Deposit Substitutes - SECTION 96. Required Reserves Against Peso Deposits - SECTION 97. Required Reserves Against Foreign Currency Deposits - SECTION 98. Reserves Against Unused Balances of Overdraft Lines - SECTION 99. Increase in Reserve Requirements - SECTION 100. Computation on Reserves - SECTION 101. Reserve Deficiencies - SECTION 102. Interbank Settlement - SECTION 103. Exemption from Attachment and Other Purposes - SECTION 104. Guiding Principle - SECTION 105. Margin Requirements Against Letters of Credit - SECTION 106. Required Security Against Bank Loans - SECTION 107. Portfolio Ceilings - SECTION 108. Minimum Capital Ratios - SECTION 109. Coordination of Credit Policies ### CHAPTER V #### FUNCTIONS AS BANKER AND FINANCIAL ADVISOR OF THE GOVERNMENT #### ARTICLE I – FUNCTIONS AS BANKER OF THE GOVERNMENT - SECTION 110. Designation of Bangko Sentral as Banker of the Government. - SECTION 111. Representation with the International Monetary Fund. - SECTION 112. Representation with Other Financial Institutions. - SECTION 113. Official Deposits. - SECTION 114. Fiscal Operations. - SECTION 115. Other Banks as Agents of the Bangko Sentral. - SECTION 116. Remuneration for Services. #### ARTICLE II – THE MARKETING AND STABILIZATION OF SECURITIES FOR THE ACCOUNT OF THE GOVERNMENT - SECTION 117. Issue of Government Obligations. - SECTION 118. Methods of Placing Government Securities. - SECTION 119. Servicing and Redemption of the Public Debt. #### ARTICLE III – FUNCTIONS AS FINANCIAL ADVISOR OF THE GOVERNMENT - SECTION 123. Financial Advice on Official Credit Operations. - SECTION 124. Representation on the National Economic and Development Authority. ### CHAPTER VI #### PRIVILEGES AND PROHIBITIONS #### ARTICLE I – PRIVILEGES - SECTION 125. Tax Exemptions. - SECTION 126. Exemption from Customs Duties. - SECTION 127. Applicability of the Civil Service Law. #### ARTICLE II – PROHIBITIONS - SECTION 128. Prohibitions. - SECTION 129. Phase-out of Fiscal Agency Functions. - SECTION 130. Phase-out of Regulatory Powers Over the Operations of Finance Corporations and Other Institutions Performing Similar Functions. - SECTION 131. Implementing Details. - SECTION 132. Transfer of Assets and Liabilities. - SECTION 133. Mandate to Organize. - SECTION 134. Separation Benefits. - SECTION 135. Repealing Clause. - SECTION 136. Transfer of Powers. - SECTION 137. Separability Clause. - SECTION 138. Effectivity Clause. # DECLARATORY PROVISIONS - SECTION 1. Declaration of Policy. — The State shall maintain a central monetary authority that shall function and operate as an independent and accountable body corporate in the discharge of its mandated responsibilities concerning money, banking and credit. In line with this policy, and considering its unique functions and responsibilities, the central monetary authority established under this Act, while being a government-owned corporation, shall enjoy fiscal and administrative autonomy. - SECTION 2. Creation of the Bangko Sentral. — There is hereby established an independent central monetary authority, which shall be a body corporate known as the Bangko Sentral ng Pilipinas, hereafter referred to as the Bangko Sentral. - SECTION 3. Responsibility and Primary Objective. — The Bangko Sentral shall provide policy directions in the areas of money, banking, and credit. It shall have supervision over the operations of banks and exercise such regulatory and examination powers as provided in this Act and other pertinent laws over the quasi-banking operations of non-bank financial institutions. As may be determined by the Monetary Board, it shall likewise exercise regulatory and examination powers over money service businesses, credit granting businesses, and payment system operators. The Monetary Board is hereby empowered to authorize entities or persons to engage in money service businesses. The primary objective of the Bangko Sentral is to maintain price stability conducive to a balanced and sustainable growth of the economy and employment. It shall also promote and maintain monetary stability and the convertibility of the peso. - SECTION 4. Place of Business. — The Bangko Sentral shall have its principal place of business in Metro Manila, but may maintain branches, agencies and correspondents in such other places as the proper conduct of its business may require. - SECTION 5. Corporate Powers. — The Bangko Sentral is hereby authorized to adopt, alter, and use a corporate seal which shall be judicially noticed; to enter into contracts; to lease or own real and personal property, and to sell or otherwise dispose of the same; to sue and be sued; and otherwise to do and perform any and all things that may be necessary or proper to carry out the purposes of Act. The Bangko Sentral may acquire and hold such assets and incur such liabilities in connection with its operations authorized by the provisions of this Act, or as are essential to the proper conduct of such operations. The Bangko Sentral may compromise, condone or release, in whole or in part, any claim of or settled liability to the Bangko Sentral, regardless of the amount involved, under such terms and conditions as may be prescribed by the Monetary Board to protect the interests of the Bangko Sentral. - SECTION 6. Composition of the Monetary Board. — The powers and functions of the Bangko Sentral shall be exercised by the Bangko Sentral Monetary Board, hereafter referred to as the Monetary Board, composed of seven (7) members appointed by the President of the Philippines for a term of six (6) years. The seven (7) members are: (a) the Governor of the Bangko Sentral, who shall be the Chairman of the Monetary Board. The Governor of the Bangko Sentral shall be head of a department and his appointment shall be subject to confirmation by the Commission on Appointments. Whenever the Governor is unable to attend a meeting of the Board, he shall designate a Deputy Governor to act as his alternate: Provided, That in such event, the Monetary Board shall designate one of its members as acting Chairman; (b) a member of the Cabinet to be designated by the President of the Philippines. Whenever the designated Cabinet Member is unable to attend meeting of the Board, he shall designate an Undersecretary in his Department to attend as his alternate; and (c) five (5) members who shall come from the private sector, all of whom shall serve full-time: Provided, however, That of the members first appointed under the provisions of this subsection, three (3) shall have a term of six (6) years, and the other two (2), three (3) years. No member of the Monetary Board may be reappointed more than once. - SECTION 7. Vacancies. — Any vacancy in the Monetary Board created by the death, resignation, or removal of any member shall be filled by the appointment of a new member to complete the unexpired period of the term of the member concerned. - SECTION 8. Qualifications. — The members of the Monetary Board must be natural-born citizens of the Philippines, at least thirty-five (35) years of age, with the exception of the Governor who should at least be forty (40) years of age, of good moral character, of unquestionable integrity, of known probity and patriotism, and with recognized competence in social and economic disciplines. - SECTION 9. Disqualifications. — In addition to the disqualifications imposed by Republic Act No. 6713, a member of the Monetary Board is disqualified from being a director, officer, employee, consultant, lawyer, agent or stockholder of any bank, quasi-bank or any other institution which is subject to supervision or examination by the Bangko Sentral, in which case such member shall resign from, and divest himself of any and all interests in such institution before assumption of office as member of the Monetary Board. The members of the Monetary Board coming from the private sector shall not hold any other public office or public employment during their tenure. - SECTION 10. Removal. — The President may remove any member the Monetary Board for any of the following reasons: (a) If the member is subsequently disqualified under the provisions of Section 8 of this Act; or (b) If he is physically or mentally incapacitated that he cannot properly discharge his duties and responsibilities and such incapacity has lasted for more than six (6) months; or (c) If the member is guilty of acts or operations which are of fraudulent or illegal character or which are manifestly opposed to the aims and interests of the Bangko Sentral; or (d) If the member no longer possesses the qualifications specified in Section 8 of this Act. - SECTION 11. Meetings. — The Monetary Board shall meet at least once a week. The Board may be called to a meeting by the Governor of the Bangko Sentral or by two (2) other members of the Board. The presence of four (4) members shall constitute a quorum: Provided, That in all cases the Governor or his duly designated alternate shall be among the four (4). Unless otherwise provided in this Act, all decisions of the Monetary Board shall require the concurrence of at least four (4) members. The Bangko Sentral shall maintain and preserve a complete record of the proceedings and deliberations of the Monetary Board, including the tapes and transcripts of the stenographic notes, either in their original form or in microfilm. The meetings of the Monetary Board may be conducted through modern technologies such as, but not limited to, teleconferencing and videoconferencing. - SECTION 12. Attendance of the Deputy Governors. — The Deputy Governors may attend the meetings of the Monetary Board with the right to be heard. - SECTION 13. Salary. — The salary of the Governor and the members of the Monetary Board from the private sector shall be fixed by the President of the Philippines at a sum commensurate to the importance and responsibility attached to position. - SECTION 14. Withdrawal of Persons Having a Personal Interest. — In addition to the requirements of Republic Act No. 6713, any member of the Monetary Board with personal or pecuniary interest in any matter in the agenda of the Monetary Board shall disclose interest to the Board and shall retire from the meeting when the matter is taken up. The decision taken on the matter shall be made public. The minutes shall reflect the disclosure made and the retirement of the member concerned from the meeting. - SECTION 15. Exercise of Authority. — In the exercise of its authority, the Monetary Board shall: (a) issue rules and regulations it considers necessary for the effective discharge of the responsibilities and exercise of the powers vested upon the Monetary Board and the Bangko Sentral. The rules and regulations issued shall be reported to the President and Congress within fifteen (15) days from the date of their issuance; (b) direct the management, operations, and administration of the Bangko Sentral, reorganize its personnel, and issue such rules and regulations as it may deem necessary or convenient for this purpose. The legal units of the Bangko Sentral shall be under the exclusive supervision and control of the Monetary Board; (c) establish a human resource management system which shall govern the selection, hiring, appointment, transfer, promotion, or dismissal of all personnel. Such system shall aim to establish professionalism and excellence at all levels of the Bangko Sentral in accordance with sound principles of management. A compensation structure, based on job evaluation studies and wage surveys and subject to the Board’s approval, shall be instituted as an integral component of the Bangko Sentral’s Human Resource Development Program: Provided, That Monetary Board shall make its own system conform as closely as possible with the principles provided for under Republic Act No. 6758: Provided, however, That compensation and wage structure of employees whose positions fall under salary grade 19 and below shall be in accordance with the rates prescribed under Republic Act No. 6758. On the recommendation the Governor, appoint, fix the remunerations and other emoluments, and remove personnel of the Bangko Sentral, subject to pertinent civil service laws: Provided, That the Monetary Board shall have exclusive and final authority to promote, transfer, assign, or reassign personnel of the Bangko Sentral and these personnel actions are deemed made in the interest of the service and not disciplinary: Provided, further, That the Monetary Board may delegate such authority to the Governor under such guidelines as may determine. (d) adopt an annual budget for authorize such expenditures by Bangko Sentral as are in the interest of the effective administration and operations of Bangko Sentral in accordance with applicable laws and regulations; and (e) indemnify its members and other officials of the Bangko Sentral, including personnel of the departments performing supervision and examination functions against all costs and expenses reasonably incurred by such persons in connection any civil or criminal action, suit or proceedings to which he may be, or is, made a party by reason of the performance of his functions or duties, unless he is finally adjudged in such action or proceeding to be liable for willful violation of this Act, performed in evident bad faith or with gross negligence. In the event of a settlement or compromise, indemnification shall be provided only in connection with such matters covered by the settlement as to which the Bangko Sentral is advised by external counsel that the person to be indemnified did not commit willful violation of this Act, performed in evident bad faith or with gross negligence. The costs and expenses incurred in defending the aforementioned action, suit or proceeding may be paid by the Bangko Sentral in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the member, officer, or employee to repay the amount advanced should it ultimately be determined by Monetary Board that he is not entitled to be indemnified as provided in this subsection. - SECTION 16. Responsibility. — The general rule and the exception therefrom on the liability of public officers as provided in Sections 38 and 39 of Chapter 9, Book 1 of the Revised Administrative Code of 1987 shall apply to the members of the Monetary Board and other personnel of the Bangko Sentral. Similar responsibility shall apply to members of the Monetary Board, and other personnel of the Bangko Sentral for: (1) the disclosure of any information a confidential nature, or any information on the discussions or resolutions of the Monetary Board, or about the confidential operations of the Bangko Sentral, unless the disclosure is in connection with the performance of official functions with Bangko Sentral, or is with prior authorization of the Monetary Board or the Governor; or (2) use of such information for personal gain or to the detriment of the Government, the Bangko Sentral or third parties: Provided, however, That any data or information required to be submitted to the President and/or the Congress, or to be published under provisions of this Act shall not be considered confidential. Unless the actions or omissions of the Bangko Sentral, members of the Monetary Board and its other personnel are finally adjudged to be willful violation of this Act, performed in evident bad faith or with gross negligence, they are held free and harmless to the fullest extent permitted by law from any liability, and they shall be indemnified for any and all liabilities, losses, claims, demands, damages, deficiencies, costs and expenses of whatsoever kind and nature that may arise in connection with the exercise of their powers and performance of their duties and functions. - SECTION 17. Powers and Duties of the Governor. — The Governor shall be the chief executive officer of the Bangko Sentral. His powers and duties shall be to: (a) prepare the agenda for the meetings of the Monetary Board submit for the consideration of the Board the policies and measures which he believes to be necessary to carry out the purposes and provisions this Act; (b) execute and administer the policies and measures approved by the Monetary Board; (c) direct and supervise the operations and internal administration of Bangko Sentral. The Governor may delegate certain of his administrative responsibilities to other officers or may assign specific tasks or responsibilities to any full-time member of the Monetary Board without additional remuneration or allowance whenever he may deem fit or subject to such rules and regulations as the Monetary Board may prescribe; (d) appoint and fix the remunerations and other emoluments of personnel below the rank of a department head in accordance with position and compensation plans approved by the Monetary Board, as well as to impose disciplinary measures upon personnel of the Bangko Sentral, subject to the provisions of Section 15(c) this Act: Provided, That removal personnel shall be with the approval of the Monetary Board; (e) render opinions, decisions, or rulings, which shall be final and executory until reversed or modified by the Monetary Board, on matters regarding application or enforcement laws pertaining to institutions supervised by the Bangko Sentral and laws pertaining to quasi-banks, as well regulations, policies or instructions issued by Monetary Board, and the implementation thereof; and (f) exercise such other powers as may be vested in him by Monetary Board. - SECTION 18. Representation of the Monetary Board and the Bangko Sentral. — The Governor of the Bangko Sentral shall be the principal representative the Monetary Board and of the Bangko Sentral and, in such capacity and in accordance with the instructions the Monetary Board, he shall be empowered to: (a) represent the Monetary Board and the Bangko Sentral in all dealings with other offices, agencies and instrumentalities the Government and all other persons or entities, public or private, whether domestic, foreign or international; (b) sign contracts entered into by the Bangko Sentral, notes and securities issued by the Bangko Sentral, all reports, balance sheets, profit and loss statements, correspondence and other documents of the Bangko Sentral. The signature of the Governor may be in facsimile whenever appropriate; (c) represent the Bangko Sentral, either personally or through counsel, including private counsel, as may be authorized by Monetary Board, in any legal proceedings, action or specialized legal studies; and (d) delegate his power to represent Bangko Sentral, as provided in subsections (a), (b) and (c) of this section, to other officers upon his own responsibility: Provided, however, That in order to preserve the integrity and the prestige of his office, the Governor of the Bangko Sentral may choose not to participate in preliminary discussions with any multilateral banking or financial institution on any negotiations for the Government within or outside the Philippines. During negotiations, he may instead be represented by a permanent negotiator. - SECTION 19. Authority of the Governor in Emergencies. — In case emergencies where time is insufficient to call a meeting of the Monetary Board, the Governor of the Bangko Sentral, with the concurrence of two (2) other members of the Monetary Board, may decide any matter or take any action within the authority of the Board. The Governor shall submit a report the President and Congress within seventy- two (72) hours after the action has been taken. At the soonest possible time the Governor shall call a meeting of the Monetary Board to submit his action for ratification. - SECTION 20. Outside Interests of the Governor and the Full-time Members of the Board. — The Governor of the Bangko Sentral and the full-time members of the Board shall limit their professional activities to those pertaining directly to their positions with the Bangko Sentral. Accordingly, they may not accept any other employment, whether public or private, remunerated or ad honorem, with exception of positions in eleemosynary, civic, cultural or religious organizations or whenever, by designation of the President, the Governor or the full-time member is tasked to represent the interest of Government or other government agencies in matters connected or affecting the economy or the financial system of the country. - SECTION 21. Deputy Governors. — The Governor of the Bangko Sentral, with the approval of the Monetary Board, shall appoint not more than five (5) Deputy Governors who shall perform duties as may be assigned to them by the Governor and the Board. In the absence the Governor, a Deputy Governor designated by the Governor shall act as chief executive of Bangko Sentral and shall exercise the powers and perform the duties of the Governor. Whenever the Governor is unable to attend meetings of government boards or councils in which he is an ex officio member pursuant to provisions of special laws, a Deputy Governor as may be designated by the Governor shall be vested with authority to participate and exercise the right to vote in such meetings. # ARTICLE IV - OPERATIONS OF THE BANGKO SENTRAL - SECTION 22. Research and Statistics. — The Bangko Sentral shall prepare data and conduct economic research for the guidance of the Monetary Board in the formulation and implementation its policies. Such data shall include, among others, forecasts of the balance of payments of the Philippines, statistics on the monthly movement of the monetary aggregates and of prices and other statistical series and economic studies useful for the formulation and analysis of monetary, banking, credit and exchange policies. - SECTION 23. Authority to Obtain Data and Information. — The Bangko Sentral shall have the authority to require from any person or entity, including government offices and instrumentalities, or government owned or -controlled corporations, any data, for statistical and policy development purposes in relation to the proper discharge of its functions and responsibilities: Provided, That disaggregated data gathered are subject to prevailing confidentiality laws. The Bangko Sentral through the Governor or in his absence, a duly authorized representative shall have the power to issue a subpoena for the production of books and records for the aforesaid purpose. Those who refuse the subpoena without justifiable cause, or who refuse to supply the Bangko Sentral with data required, shall be subject to punishment for contempt in accordance with the provisions of Rules of Court. The authority of the Bangko Sentral to require data from banks shall continue to be exercised pursuant to its supervisory powers set forth this Act and other applicable laws. Data on individuals and firms, other than banks, gathered by Bangko Sentral shall not be made available any person or entity outside of the Bangko Sentral whether public or private except under order of court or under such conditions as may be prescribed by Monetary Board: Provided, however, That the collective data on firms may be released to interested persons or entities: Provided, finally, That in case of data on banks, the provisions of Section 27 of this Act shall apply. - SECTION 24. Training of Technical Personnel. — The Bangko Sentral shall promote and sponsor the training technical personnel in the field of money and banking. Toward this end, the Bangko Sentral is hereby authorized to defray the costs study home or abroad, of qualified employees of Bangko Sentral, of promising university graduates or of any other qualified persons who shall be determined by proper competitive examinations. The Monetary Board shall prescribe rules and regulations to govern the training program of the Bangko Sentral. - SECTION 25. Supervision and Examination. — The Bangko Sentral shall have supervision over, and conduct regular or special examinations of banking institutions and quasi-banks, including their subsidiaries and affiliates engaged in allied activities. For purposes of this section, a subsidiary means a corporation more than fifty percent (50%) of the voting stock of which directly or indirectly owned, controlled or held with power to vote by a bank or quasi-bank and an affiliate means a corporation the voting stock of which, to the extent of fifty percent (50%) or less, is owned by a bank or quasi-bank or which is related or linked directly or indirectly to such institution or intermediary through common stockholders or such other factors as may be determined by the Monetary Board. The Bangko Sentral shall have regulatory authority over, and conduct regular or special examinations of, entities which under this Act or by special laws are subject to its jurisdiction. The Bangko Sentral shall establish a mechanism for issues arising from bank examinations. It shall be independent and reports directly to the Monetary Board, without prejudice to the authority of the Bangko Sentral and its Monetary Board to take enforcement and supervisory actions against supervised entities. The department heads and the examiners of supervising and/or examining departments are hereby authorized to administer oaths to any director, officer, or employee any institution under their respective supervision or subject to their examination, and to compel the presentation of all books, documents, papers or records necessary their judgment to ascertain the facts relative to the true condition of any institution as well as the books and records of persons and entities relative to or in connection with the operations, activities or transactions the institution under examination, subject to the provision of existing laws protecting or safeguarding the secrecy or confidentiality bank deposits as well as investments of private persons, natural or juridical, in debt instruments issued by the Government. No restraining order or injunction shall be issued by the court enjoining the Bangko Sentral from examining any institution subject to supervision or examination by Bangko Sentral, unless there is convincing proof that action of Bangko Sentral is plainly arbitrary and made in bad faith and the petitioner or plaintiff files with the clerk or judge of the court in which the action pending a bond executed in favor of the Bangko Sentral, in an amount to be fixed by the court. The provisions of Rule 58 of the New Rules of Court insofar as they are applicable and not inconsistent with provisions of this section shall govern the issuance and dissolution the restraining order or injunction contemplated this section. - SECTION 25-A. Authority to Approve Transfer of Shares. — Transfers or acquisitions, or a series thereof, of at least ten percent (10%) of the voting shares in banks or quasi-banks shall require the prior approval of the Bangko Sentral. The selling or conveying stockholder shall submit such transfer or acquisition for approval by the Bangko Sentral within such period as may be prescribed by the Monetary Board. In approving such transfers or acquisitions, regard shall be given by the Bangko Sentral to fitness of the incoming stockholders as may be indicated in their integrity, reputation and financial capacity. Without Bangko Sentral approval, no such transfer or acquisition shall have legal effect nor shall the same be recognized in the books of institution or by any government agency, and the transferor-stockholders shall remain accountable and responsible therefor. Transfer of actual control or management of the institution the new stockholders or their representatives prior to Bangko Sentral approval shall make the transferor, the transferee and any person responsible therefor liable under Sections 36 and 37 of this Act. Notwithstanding any provision of law to the contrary, the Bangko Sentral may share with the Philippine Deposit Insurance Corporation any information that the Bangko Sentral may obtain pertaining to transfer or acquisition of shares or series of transfers or acquisition of shares in banks and quasi-banks. - SECTION 26. Bank Deposits and Investments. — Any director, officer or stockholder who, together with his related interest, contracts a loan or any form of financial accommodation from: (1) his bank; or (2) from a bank (a) which is a subsidiary of a bank holding company of which both his bank and the lending bank are subsidiaries or (b) in which a controlling proportion of the shares is owned by the same interest that owns a controlling proportion of the shares of his bank, in excess five percent (5%) of capital and surplus of the bank, or in the maximum amount permitted by law, whichever is lower, shall be required by lending bank to waive the secrecy of his deposits of whatever nature in all banks in the Philippines. Any information obtained from an examination of his deposits shall be held strictly confidential and may be used by the examiners only in connection with their supervisory and examination responsibility or by the Bangko Sentral in an appropriate legal action it has initiated involving deposit account. - SECTION 27. Prohibitions. — In addition to the prohibitions found in Republic Act Nos. 3019 and 6713, personnel of the Bangko Sentral are hereby prohibited from: (a) being an officer, director, lawyer or agent, employee, consultant or stockholder, directly or indirectly, of any institution subject to supervision or examination by the Bangko Sentral, except non-stock savings and loan associations and provident funds organized exclusively for employees of the Bangko Sentral, and except as otherwise provided this Act; (b) directly or indirectly requesting or receiving any gift, present or pecuniary or material benefit for himself or another, from any institution subject to supervision or examination by Bangko Sentral; (c) revealing in any manner, except under orders of the court, the Congress or any government office or agency authorized by law, or under such conditions as may be prescribed by the Monetary Board, information relating to the condition or business of any institution. This prohibition shall not be held to apply to the giving information to the Monetary Board or the Governor of the Bangko Sentral, or to any person authorized by either of them, in writing, to receive such information; and (d) borrowing from any institution subject to supervision or examination by Bangko Sentral unless said borrowing is transacted on an arm’s length basis, fully disclosed to the Monetary Board, and shall be subject to such rules and regulations as the Monetary Board may prescribe. - SECTION 28. Examination and Fees. — The supervising and examining department head, personally or by deputy, shall examine the operations of every bank and quasi-bank, including their subsidiaries and affiliates engaged in allied activities, and other entities which under this Act or special laws are subject to Bangko Sentral supervision, in accordance with the guidelines set by the Monetary Board taking into consideration sound and prudent practices: Provided, That there shall be an interval of at least twelve (12) months between regular examinations: Provided further, That the Monetary Board, by an affirmative vote of at least five (5) members, may authorize special examination if the circumstances warrant. The institution concerned shall afford to the head of the appropriate supervising and examining departments and to his authorized deputies full opportunity to examine its books and records, cash and assets and general condition and review its systems and procedures at any time during business hours when requested to do so by the Bangko Sentral: Provided, however, That none of reports and other papers relative to such examinations shall be open inspection by the public except insofar as such publicity is incidental to proceedings hereinafter authorized or is necessary for the prosecution violations in connection with business of such institutions. Supervised institutions shall pay to the Bangko Sentral, no later than May 31 of each year, an annual supervision fee as may be prescribed by Monetary Board. In determining the amount of the annual supervision fee, Monetary Board shall consider the costs of supervision. - SECTION 28-A. Bangko Sentral Coordination. — The suspension or revocation of any government license necessary for the operation Bangko Sentral-supervised entity must be done only with prior consultation with the Bangko Sentral. - SECTION 29. Appointment of Conservator. — Whenever, on the basis of a report submitted