Gatchalian urges BSP to prioritize increase of own capitalization amid move to fund MIF

Senator Win Gatchalian urged the Bangko Sentral ng Pilipinas (BSP) to prioritize the increase of its own capitalization pursuant to RA 11211 or the Act Amending the New Central Bank Act amid a proposal to tap the monetary regulatory agency as a source of the Maharlika Investment Fund (MIF).

Under the proposed measure, the BSP would have to give up all of its dividends in favor of the MIF in the first two years of the fund and then 50% of its dividends in the years after. BSP Deputy Governor Francisco Dakila, Jr. said it would take around 14 years to achieve the P200 billion capitalization of BSP should its dividends be used to fund MIF.

Gatchalian emphasized that a delay in the BSP's target of increasing its capitalization to P200 billion runs counter to arguments made by the central bank when RA 11211 was being deliberated at the Senate.

Gatchalian said RA 11211, which was approved in February 2019, essentially seeks to increase the BSP's capitalization from P50 billion to P200 billion.

"When you were arguing to increase your capitalization to P200 billion, you emphasized the need for a stronger BSP to adapt to the changing times because the economy has grown and to enable BSP to better manage the risks in its operations. Now that we're almost back to normal, why are you foregoing 2 years or more to increase your capitalization? Where is the sense of urgency now?" Gatchalian asked Dakila at a recent Senate hearing on the proposed measure creating the MIF.

According to Gatchalian, voting in favor of the proposal to fund the MIF partly from BSP dividends means a green light to forego more than two years of using its dividends to ready BSP in meeting the challenges of the economy and financial system. "We were made to understand that there was a sense of urgency because we need a strong regulator. In effect, we would be contradicting our vote," said Gatchalian, referring to the Senate's approval of Republic Act 11211,"

Gatchalian added that BSP stands to lose about P10 to P20 billion of funds for its capitalization every year if it will be mandated to contribute to the MIF under the proposed measure. He further noted that three years after RA 11211 was enacted into law, BSP's capitalization, which currently stands at P60 billion, has increased only by P10 billion and is way too far from its capitalization target of P200 billion.

Gatchalian hinimok ang BSP na iprayoridad ang kapitalisasyon sa gitna ng hakbang para pondohan ang MIF

Hinimok ni Senador Win Gatchalian ang Bangko Sentral ng Pilipinas (BSP) na unahin ang pagtaas ng sarili nitong capitalization alinsunod sa RA 11211 o ang Act Amending the New Central Bank Act sa gitna ng panukalang gawin itong isa sa mga pagkukunan ng pondo para sa Maharlika Investment Fund (MIF).

Sa ilalim ng panukalang batas, kailangang isuko ng BSP ang lahat ng dibidendo nito pabor sa MIF sa unang dalawang taon ng pagpopondo at pagkatapos ay 50% ng mga dibidendo nito sa mga susunod na taon. Sinabi ni BSP Deputy Governor Francisco Dakila, Jr. na aabutin ng 14 taon bago makamit ang P200 billion capitalization ng BSP kung gagamitin ang dibidendo nito para pondohan ang MIF.

Pero ipinagtataka ni Gatchalian na anumang pagkaantala sa target ng BSP na pataasin ang capitalization nito sa P200 bilyon ay salungat sa mga argumento na ginawa ng bangko sentral noong ang RA 11211 ay pinagdedebatehan pa lang sa Senado.

Sinabi ni Gatchalian na ang RA 11211, na naaprubahan noong Pebrero 2019, ay layong itaas ang capitalization ng BSP mula P50 bilyon hanggang P200 bilyon.

"Nagmamadali kayo noon na taasan ang capitalization ng Bangko Sentral sa P200 bilyon upang umangkop ito sa pagbabago ng panahon kasunod ng paglaki ng ekonomiya habang pinangangasiwaan nang maigi ang operasyon ng naturang institusyon. Pero ngayon na halos back-to-normal na, bakit hinahayaan ninyong mawala ang kikitain ninyo sa loob ng dalawang taon kung ilalagay ninyo ito sa MIF? Nasaan na ang sense of urgency ngayon?" tanong ni Gatchalian kay Dakila sa nakaraang pagdinig ng Senado sa panukalang lumikha ng MIF.

Ayon kay Gatchalian, ang pagpabor sa panukalang pondohan ang MIF mula sa mga dibidendo ng BSP ay nangangahulugan na pakakawalan na nila ang dalawang taon kita mula sa mga dibidendo. Lumalabas aniya na tila nabalewala ang boto nila noon pabor sa RA 11211.

Dagdag pa ng senador, ang BSP ay maaaring mawalan ng humigit-kumulang P10 bilyon hanggang P20 bilyon na pondo para sa capitalization nito kada taon kung imamandato itong mag-ambag sa MIF sa ilalim ng panukalang batas. Sinabi pa niya na tatlong taon pagkatapos maisabatas ang RA 11211, ang capitalization ng BSP, na kasalukuyang nasa P60 bilyon, ay tumaas lamang ng P10 bilyon at malayo pa sa target na capitalization nitong P200 bilyon.