Article 134p. 134

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

(c) one hundred twenty (120) days after the end of each

semester, a review of the state of the financial system;

and

(d) as soon as practicable, abnormal movements in

monetary aggregates and the general price level, and,

not later than seventy-two (72) hours after they are taken,

remedial

measures

in

response

to

such

abnormal

movements.

SECTION 40. Annual Report . — Before the end of March

of each year, the Bangko Sentral shall publish and submit

to the President and the Congress an annual report on

the condition of the Bangko Sentral including a review of

the policies and measures adopted by the Monetary

Board during the past year and an analysis of the

economic and financial circumstances which gave rise to

said policies and measures.

The annual report shall also include a statement of the

financial condition of the Bangko Sentral and a statistical

appendix

which

shall

present,

as

a

minimum,

the

following data:

(a) the monthly movement of monetary aggregates and

their components;

(b) the monthly movement of purchases and sales of

foreign exchange and of the international reserves of the

Bangko Sentral ;

(c) the balance of payments of the Philippines;

(d) monthly indices of consumer prices and of import and

export prices;

(e) the monthly movement, in summary form, of exports

and imports, by volume and value;

(f) the monthly movement of the accounts of the Bangko

Sentral and of other banks;

(g)

the

principal

data

on

government receipts and

expenditures and on the status of the public debt, both

domestic and foreign; and

(h)

the

texts

of the major legal and administrative

measures adopted by the Government and the Monetary

Board during the year which relate to the functions or

operations of the Bangko Sentral or of the financial

system.

The Bangko Sentral shall publish another version of the

annual report in terms understandable to the layman.

Failure

to

comply

with the reportorial requirements

pursuant to this article without justifiable reason as may

be determined by the Monetary Board shall cause the

withholding of the salary of the personnel concerned

until such requirements are complied with.

SECTION 41. Signatures on Statements . — The balance

sheets and other financial statements of the Bangko

Sentral shall be signed by the officers responsible for

their preparation, by the Governor, and by the auditor of

the Bangko Sentral .

ARTICLE VI Profits, Losses, and Special Accounts

SECTION 42. Fiscal Year . — The fiscal year of the Bangko

Sentral

shall

begin

on

January

first

and

end

on

December thirty-first of each year.

SECTION 43. Computation of Profits and Losses . —

Within the first thirty (30) days following the end of each

year, the Bangko Sentral shall determine its net profits or

losses. In the calculation of net profits, the Bangko

Sentral

shall

make

adequate allowance or establish

adequate reserves for bad and doubtful accounts.

SECTION 44. Distribution of Net Profits . — Within the

first sixty (60) days following the end of each fiscal year,

the Monetary Board shall determine and carry out the

distribution of the net profits, in accordance with the

following rule:

Fifty percent (50%) of the net profits shall be carried to

surplus and the remaining fifty percent (50%) shall revert

back

to

the

National

Treasury,

except as otherwise

provided in the transitory provisions of this Act.

SECTION 45. Revaluation Profits and Losses . — Profits

or losses arising from any revaluation of the Bangko

Sentral 's

net

assets

or

liabilities

in

gold

or foreign

currencies with respect to the Philippine peso shall not

be included in the computation of the annual profits and

losses of the Bangko Sentral . Any profits or losses arising

in this manner shall be offset by any amounts which, as a

consequence of such revaluations, are owed by the

Philippines

to

any

international

or

regional

intergovernmental

financial

institution

of

which

the

Philippines is a member or are owed by these institutions

to the Philippines. Any remaining profit or loss shall be

carried in a special frozen account which shall be named

"Revaluation

of

International

Reserve"

and

the

net

balance of which shall appear either among the liabilities

or among the assets of the Bangko Sentral , depending

on whether the revaluations have produced net profits or

net losses.

The Revaluation of International Reserve account shall be

neither credited nor debited for any purposes other than

those specifically authorized in this section.

SECTION 46. Suspense Accounts . — Sections 43 and

43-A of Republic Act No. 265 , as amended, creating the

Monetary Adjustment Account (MAA) and the Exchange

Stabilization Adjustment Account (ESAA), respectively, are

hereby repealed. Amounts outstanding as of the effective

date of this Act based on these accounts shall continue to

be for the account of the Central Bank and shall be

governed by the transitory provisions of this Act.

The Revaluation of International Reserve (RIR) account as

of the effective date of this Act of the Central Bank shall

continue to be for the account of the same entity and

shall be governed by the provisions of Section 44 of

Republic

Act

No.

265 ,

as

amended, until otherwise

provided for in accordance with the transitory provisions

of this Act.

ARTICLE VII

The Auditor

SECTION

47.

Appointment

and

Personnel .

—

The

Chairman of the Commission on Audit shall act as the ex

officio auditor of the Bangko Sentral and, as such, he is

empowered and authorized to appoint a representative

who shall be the auditor of the Bangko Sentral and, in

accordance with law, fix his salary, and to appoint and fix

the salaries and number of personnel to assist said

representative

in

his

work.

The

salaries

and

other

emoluments

shall

be paid by the Commission. The

auditor of the Bangko Sentral and personnel under him

may

be

removed

only

by

the

Chairman

of

the

Commission.

The representative of the Chairman of the Commission

must be a certified public accountant with at least ten

(10) years experience as such. No relative of any member

of

the

Monetary

Board

or

the

Chairman

of

the

Commission within the sixth degree of consanguinity or

affinity shall be appointed such representative.

CHAPTER II The Bangko Sentral and the Means

of Payment

ARTICLE I The Unit of Monetary Value

SECTION 48. The Peso . — The unit of monetary value in

the Philippines is the "peso," which is represented by the

sign "P."

The peso is divided into one hundred (100) equal parts

called "centavos," which are represented by the sign "c."

© Compiled by RGL

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