Be it enacted by the Batasang Pambansa in session assembled:

SECTION 1. Section 12 of Republic Act No. 265, as amended, is hereby amended to read as follows:

"SEC. 12. Remuneration of members attending meetings of the Board.—The members of the Monetary Board or their respective substitutes, except the Governor and the Senior Deputy Governor, shall receive a per diem for every Board meeting attended. The amount of per diem shall be set by the President (Prime Minister) but may not exceed five hundred (P500) pesos nor the sum of five thousand (P5,000) pesos for every single month."

SEC. 2. Section 14 of the same Act is hereby further amended to read as follows:

"SEC. 14. Exercise of authority.—In order to exercise the authority granted to it under this Act, the Monetary Board shall:

"(a) Prepare and issue rules and regulations as it considers necessary for the effective discharge of the responsibilities and exercise of the powers assigned to the Monetary Board and to the Central Bank under this Act, and the rules and regulations issued shall be reported to the President (Prime Minister) and the Batasang Pambansa within fifteen days from the date of their issuance.

"(b) Direct the management, operations, and administration of the Central Bank and issue such rules and regulations as it may deem necessary or convenient for this purpose. The legal units of the Central Bank shall be under the exclusive supervision and control of the Monetary Board, the provision of any law to the contrary notwithstanding.

. "(c) On the recommendation of the Governor, appoint, fix the remunerations and other emoluments, and remove personnel of the Central Bank, with the exception of the. Governor, subject to pertinent civil service and compensation laws: Provided, That the Monetary Board shall have exclusive and final authority to promote, transfer, assign, or reassign personnel of the Central Bank and these personnel actions are deemed made in the interest of the service and not disciplinary, any provisions of existing law to the contrary notwithstanding; and

"(d) Authorize such expenditures by the Central Bank as are in the interest of the effective administration and operations of the Bank in accordance with applicable laws and regulations."

SEC. 3. Section 34-A of the same Act is hereby amended to read as follows:

"SEC. 34-A. Administrative sanctions on banks.—The Monetary Board is hereby authorized, at its discretion, to impose upon banking institutions, their directors and/ or officers, for any willful delay in the submission of reports or publications thereof as required by law, rules and regulations; any refusal to permit examination into the affairs of the institution; any willful making of a false statement to the Board or to the appropriate supervising and examining department or its examiners; any willful failure or refusal to comply with, or violation of, any banking law or any order, instruction or regulation issued by the Monetary Board, or any order, instruction or ruling by the Governor; or any commission of irregularities, and/or conducting business in an unsafe or unsound manner as may be determined by the Monetary Board, the following administrative sanctions:

"(a) Fines not in excess of five hundred pesos a day for each type of violation;

"(b) Suspension, or after due hearing, removal of directors and/or officers;

"(c) Suspension of rediscounting privileges;

"(d) Suspension of lending or foreign exchange operations or authority to accept new deposits or make new investments;

"(e) Suspension of interbank clearing privileges; and/or

"(f) Suspension of authority to operate.

"The above administrative sanctions need not be applied in the order of their severity.

"Except in the appointment of a conservator and proceedings upon insolvency as provided for under Sections 28-A and 29 of this Act, the Governor is authorized to 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 of banking laws, implementation of Monetary Board regulations, policies or instructions pertaining to institutions supervised by the Central Bank, including their method of accounting or manner of keeping the accounts, books and financial records, and their submission of reports.

"The Governor is likewise hereby authorized, at his discretion, to impose upon banking institutions, for any failure to comply with the requirements of law, Monetary Board regulations and policies, and/or instructions issued by the Monetary Board or by the Governor, fines not in excess of five hundred pesos a day for each type of violation, the imposition of which shall be final and executory until reversed, modified or lifted by the Monetary Board on appeal.

"Administrative sanctions shall be applied to all banks of the same category uniformly and without discrimination."

SEC. 4. The same Act is hereby amended by adding a new section after Section 34-A thereof, to read as follows:

"SEC. 34-B. Administrative sanctions oil non-bank financial intermediaries performing quasi-banking functions. —The Monetary Board is hereby authorized, at its discretion, to impose upon non-bank financial intermediaries performing quasi-banking functions, their directors and/ or officers, for any willful delay in the submission of reports or publications thereof as required by law, rules or regulations; any refusal to permit examination into the affairs of the institution; any willful making of a false statement to the Board or to the appropriate supervising or examining department or its examiners; any willful failure or refusal to comply with, or violation of, any law pertaining to non-bank financial intermediaries performing quasi-banking functions or any order, instruction or regulation issued by the Monetary Board, or any order, instruction or ruling by the Governor; or any commission of irregularities, the following administrative sanctions :

"(a) Fines not in excess of five hundred pesos a day for each type of violation;

"(b) Suspension or, after due hearing, removal of directors and/or officers;

"(c) Suspension of access to Central Bank credit facilities; and/or

"(d) Suspension or, after due hearing, revocation of quasi-banking license.

"The above administrative sanctions need not be applied in the order of their severity.

"The Governor is authorized to 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 of laws pertaining to non-bank financial intermediaries performing quasi-banking functions, implementation of Monetary Board regulations, policies or instructions pertaining to non-bank financial intermediaries with quasi-banking functions, including their method of accounting or manner of keeping the accounts, books and financial records, and their submission of reports.

"The Governor is likewise hereby authorized, at his discretion, to impose upon non-bank financial intermediaries with quasi-banking functions for any failure to comply with the requirements of law, Monetary Board regulations and policies, and/or instructions issued by the Monetary Board or by the Governor, fines not in excess of five hundred pesos a day for each type of violation, the imposition of which shall be final and executory until reversed, modified or lifted by the Monetary Board on appeal."

SEC. 5. Section 36 of the same Act is hereby further amended to read as follows:

"SEC. 36. Reports and publications.—Within the first fifteen days of each month, the Central Bank shall publish a general balance sheet showing the volume and composition of its assets and liabilities as of the last working day of the preceding month."

SEC. 6. Section 43-c of the same Act is hereby further amended to read as follows:

"(c) Interests paid on bank reserves which exceed fifty percent (50%) of bank deposits, in conformity with the provisions of Section 101, last paragraph, of this Act.

"The amounts which are excluded from the computation of profits and losses in accordance with the provisions of the first paragraph of this section shall be entered in a suspense account which shall be called the 'Monetary Adjustment Account'.

The Monetary Board shall in every case amortize such expenses over a period which shall not exceed ten years and at a rate which shall be based on the adequacy of the Bank's profit."

SEC. 7. The title of Article IV, Chapter IV, of the same Act is hereby amended to read as follows :

"Article IV.—Loans to Banking and Other Financial Institutions"

SEC. 8. The same Act is hereby amended by adding a new subsection after Subsection B, Section 88 thereof, to read as follows:

"(c) In order to promote the medium and long-term operations of non-bank financial intermediaries performing quasi-banking functions and to maintain conditions of competition, the Central Bank may, at its discretion, extend credit accommodations to such financial intermediaries, subject to such conditions and regulations as the Monetary Board may prescribe and, whenever applicable and not inconsistent with this subsection, to the other provisions of Article IV of this Chapter."

SEC. 9. This Act shall take effect upon its approval.

Approved, April 1, 1980.