Gatchalian scrutinizes BSP capability anew to respond to crises amid Maharlika funding
March 6, 2023
Gatchalian scrutinizes BSP capability anew to respond to crises amid Maharlika funding
Senator Win Gatchalian asked the Bangko Sentral ng Pilipinas (BSP) to demonstrate its capability to respond to possible monetary crises and other financial challenges if it is tapped to provide capital for the Maharlika Investment Fund (MIF) and its own full capitalization is delayed.
Gatchalian made the scrutiny after learning that tapping the central bank's dividends as a fund source for the MIF would lead the financial institution to achieve its own full capitalization only after 17 years. The BSP is mandated under Republic Act 11211 or the Act Amending the New Central Bank Act, which was enacted into law in 2019, to increase its capitalization from P50 billion to P200 billion out of its declared dividends.
The senator took note that without a mandate to contribute its dividends to the MIF, it would take the BSP only 8 years to fill up its target capitalization. On the other hand, requiring BSP to pump into the MIF 100% of its dividends for 2 years and 50% thereafter would take the central bank 17 years to achieve full capitalization or a delay of 9 years.
"What I am quite concerned with is the ability of the BSP to respond in times of banking challenges and we cannot isolate that. The size of the banking industry was the compelling reason why we needed to build up the capitalization of the BSP. Now, delaying it for almost 2 decades does not give me the confidence that nothing bad will happen in the next 17 years. Anything can happen in the next 17 years. That is why the sooner we can build up the capitalization of BSP, the better for all of us," Gatchalian stressed during a recent Senate hearing.
"If there's trouble in the banking system, let's say a currency crisis, are we ready to face all those challenges? Demonstrate to us that in the worst event, the BSP is ready to fight those challenges with a 50-billion capitalization," the senator told the BSP.
"We were made to understand that the size of the banking industry has already outsized the capital of BSP. So, by delaying it by another 9 years obviously the size of the banking industry will be much bigger compared to the capitalization of BSP. Can you explain why the BSP is willing to forego 9 years of its capitalization build-up considering that your argument in the past was that the economy was 11.3 times bigger compared to 1993 and the banking system was 12.2 times bigger? What calculations have you done to make you forego your capitalization build-up by 9 years? What safeguards do we have to protect our banking industry?", asked Gatchalian.
The senator emphasized the BSP needs to demonstrate that even in a worst-case scenario, the institution is equipped to respond to those challenges even if its full capitalization is delayed. In an earlier statement, Gatchalian also said that the privatization of government assets is a more logical and less controversial fund source for the MIF.
Gatchalian muling siniyasat ang kakayahan ng BSP sa pagpopondo ng Maharlika
Muling siniyasat ni Senador Win Gatchalian ang Bangko Sentral ng Pilipinas (BSP) na ipakita ang kakayahan nito na tumugon sa anumang posibleng monetary crisis at iba pang katulad na hamon kung mabibilang ito sa mga institusyong magbibigay ng kapital para sa Maharlika Investment Fund (MIF) at sakaling ang sarili nitong capitalization ay maantala.
Ang naturang pagsisiyasat ay kasunod ng impormasyong makakamit lang ng BSP ang layunin nitong full capitalization pagkatapos ng 17 taon kung gagamitin ang mga dibidendo nito para sa pagpopondo sa MIF. Ang BSP ay may mandato sa ilalim ng Republic Act 11211, o ang Act Amending the New Central Bank Act, na magtaas ng capitalization mula P50 bilyon hanggang P200 bilyon mula sa idineklara nitong mga dibidendo.
Napag-alaman din ng senador na aabutin lamang ng 8 taon ang BSP para punan ang target nitong kapitalisasyon kung wala itong mandato na mag-ambag ng mga dibidendo sa MIF. Lumalabas na siyam na taon ang magiging delay ng kapitalisasyon ng BSP.
"Ang lubos kong ikinababahala ay ang kakayahan ng BSP na tumugon sa panahon ng mga hamon sa pagbabangko. Ang laki ng industriya ng pagbabangko ang dahilan kung bakit kailangan nating palakihin ang capitalization ng BSP. Ang sinasabing pagkaantala nito ng halos 2 dekada ay hindi nagbibigay sa akin ng kumpiyansa na walang masamang mangyayari sa susunod na 17 taon. Anumang bagay ay maaaring mangyari sa susunod na 17 taon. Kaya naman mas makakabuti sa atin kung mapunan natin agad ang buong capitalization ng BSP," giit ni Gatchalian.
"Kung may problema sa sistema ng pagbabangko, sabihin nating krisis sa pera, handa ba tayong harapin ang lahat ng mga hamon na iyon? Kailangan nyong ipakita sa amin na kapag dumating ang worst-case scenario, handa ang BSP na labanan ang mga hamong iyon," sabi ng senador sa BSP.
"Maaari nyo bang ipaliwanag kung bakit handang talikuran ng BSP ang 9 na taon ng capitalization build-up para lang magbigay daan sa pagpopondo sa MIF. Anong mga safeguards ang meron tayo para maprotektahan ang industriya ng pagbabangko?", tanong ni Gatchalian sa BSP.
Binigyang-diin ng senador na kailangang ipakita ng BSP na kahit na sa pinakamasamang sitwasyon, ang institusyon ay handang tumugon sa mga hamon kahit na maantala ang buong capitalization nito. Sa naunang pahayag, sinabi rin ni Gatchalian na ang pagsasapribado ng mga ari-arian ng gobyerno ay mas lohikal at hindi gaanong kontrobersyal na pagkukunan ng pondo para sa MIF.
