Article 129p. 129

COMMERCIAL LAWS NEGOTIABLE INSTRUMENTS, CORPORATION, INSURANCE, TRANSPORTATION, BANKING

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.

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 the 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 his 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 the 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 the 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 of 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 it may determine.

(d) adopt an annual budget for and authorize such

expenditures by the Bangko Sentral as are in the interest

of the effective administration and operations of the

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 with 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 negligence or

misconduct.

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 any negligence

or misconduct.

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 the Monetary Board that he

is not entitled to be indemnified as provided in this

subsection.

SECTION 16. Responsibility . — Members of the Monetary

Board, officials, examiners, and employees of the Bangko

Sentral who willfully violate this Act or who are guilty of

negligence, abuses or acts of malfeasance or misfeasance

or

fail

to

exercise

extraordinary

diligence

in

the

performance of his duties shall be held liable for any loss

or injury suffered by the Bangko Sentral or other banking

institutions as a result of such violation, negligence,

abuse, malfeasance, misfeasance or failure to exercise

extraordinary diligence.

Similar responsibility shall apply to members, officers, and

employees of the Bangko Sentral for: (1) the disclosure of

any

information

of

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 the

Bangko Sentral , or is with prior authorization of the

Monetary Board or the Governor; or (2) the 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 the provisions of this Act shall not

be considered confidential.

ARTICLE III The Governor and Deputy Governors

of the Bangko Sentral

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 and to submit for the consideration of the Board

the policies and measures which he believes to be

© Compiled by RGL

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