New Central Bank Act (R.A. 7653) : Establishment and Organization of The Bangko Sentral NG Pilipinas
New Central Bank Act (R.A. 7653) : Establishment and Organization of The Bangko Sentral NG Pilipinas
New Central Bank Act (R.A. 7653) : Establishment and Organization of The Bangko Sentral NG Pilipinas
7653)
CHAPTER I Do and perform any and all things that
ESTABLISHMENT AND ORGANIZATION may be necessary or proper to carry out
OF THE BANGKO SENTRAL NG PILIPINAS the purposes of this Act;
Acquire and hold such assets and incur
ARTICLE I. CREATION, RESPONSIBILITIES such liabilities in connection with its
AND CORPORATE POWERS OF THE BANGKO operations;
SENTRAL Condone or release any claim of or
settled liability to the BS, regardless of
Sec. 1. Declaration of Policy the amount involved.
The State shall maintain a central monetary
authority that shall function and operate as ARTICLE II. THE MONETARY BOARD
an independent and accountable body
corporate in the discharge of its mandated Sec. 6. Composition of the Monetary Board
responsibilities concerning money, banking The MB, composed of seven members
and credit. appointed by the President of the Philippines
While being a government-owned for a term of six years:
corporation, it shall enjoy fiscal and The Governor of the BS, who shall be
administrative autonomy. the Chairman;
A member of the Cabinet to be
Sec. 3. Responsibility and Primary Objective designated by the President of the
The BS shall: Philippines;
Provide policy directions in the areas of Five members who shall come from the
money, banking, and credit; private sector, all of whom shall serve
Shall have supervision over the full-time
operations of banks; The members first appointed, three
Exercise regulatory powers over the shall have a term of 6 years, and the
operations of finance companies and other two, 3 years.
non-bank financial institutions
performing quasi-banking functions. Sec. 8. Qualifications
The primary objective of the BS is: The members of the MB must be:
Maintain price stability conducive to a Natural-born citizens of the Philippines;
balanced and sustainable growth of the At least 35 years of age
economy and employment; Exception: Governor should at least
Promote and maintain monetary stability be 40 years of age;
and the convertibility of the peso; Of good moral character;
Promote financial stability and closely Of unquestionable integrity;
work with the National Government; Of known probity and patriotism;
Oversee the payment and settlement With recognized competence in social
systems in the Philippines. and economic disciplines.
Sec. 5. Corporate Powers Sec. 9. Disqualifications
The BS is hereby authorized to: As imposed by R.A. 6713
Adopt, alter, and use a corporate seal Disqualified from being a director, officer,
which shall be judicially noticed; stockholder of any bank, which is subject to
Enter into contracts; supervision or examination by the BS.
Lease or own real and personal property, Such member shall resign from, and
and to sell or otherwise dispose of the divest himself of any and all interests in
same; such institution before assumption of
Sue and be sued; office;
NEW CENTRAL BANK ACT (R.A. 7653)
Members of the MB coming from the Meetings may be conducted through modern
private sector shall not hold any other public technologies.
office or public employment during their
tenure; Section 15. Exercise of Authority
No person shall be a member if he has been The MB shall:
connected directly with any multilateral Issue rules and regulations it considers
banking or financial institution or has a necessary for the effective discharge of
substantial interest in any private bank in the the responsibilities and exercise of the
Philippines, one year prior to his powers vested upon them;
appointment; Direct the management, operations, and
No member of the MB shall be employed in administration of the BS, reorganize its
any such institution within two years after personnel, and issue such rules and
the expiration of his term. regulations;
Exception: When he serves as an Establish a human resource management
official representative of the Philippine system which shall govern the selection,
Government to such institution. hiring, appointment, transfer, promotion,
or dismissal of all personnel;
Sec. 10. Removal Adopt an annual budget for and
The President may remove any member of authorize such expenditures by the BS;
the MB for any of the following reasons: Indemnify its members against all costs
Subsequently disqualified under the and expenses reasonably incurred by
provisions of Section 8 of this Act; such persons in connection with any
Physically or mentally incapacitated that civil or criminal action by reason of the
he cannot properly discharge his duties performance of his functions or duties,
and responsibilities and such incapacity unless he is finally judged to be liable
has lasted for more than six months; for willful violation in bad faith or with
Guilty of acts or operations which are of gross negligence.
fraudulent or illegal character or which
are manifestly opposed to the aims and Sec. 16. Responsibility
interests of the BS; Sections 38 and 39 of Chapter 9, Book I of
No longer possesses the qualifications the Revised Administrative Code of 1987
specified. shall apply to the members of the MB;
Similar responsibility shall apply to
Sec. 11. Meetings members of the MB for:
MB shall meet at least once a week. The Disclosure of any information of a
Board may be called to a meeting by the confidential nature
Governor of the BS or by two other NOTE: Disclosure is in connection
members; with the performance of official
Presence of four members shall constitute functions;
a quorum Use of such information for personal
NOTE: The Governor or his duly gain or to the detriment of the
designated alternate shall be among the Government, the BS or third parties.
four; NOTE: Any data or information required to
All decisions of the MB shall require the be submitted to the President and/or the
concurrence of at least four members; Congress shall not be considered
BS shall maintain and preserve a complete confidential.
record of the proceedings and deliberations
of the MB, either in their original form or in
microfilm;
NEW CENTRAL BANK ACT (R.A. 7653)
CHAPTER III. THE GOVERNOR AND DEPUTY Sec. 20. Outside Interests of the Governor and the
GOVERNORS OF THE BANGKO SENTRAL Fulltime Members of the Board
The Governor of the BS and the full-time
Sec. 17. Powers and Duties of the Governor members of the Board shall limit their
The Governor shall be the chief executive professional activities to those pertaining
officer of the BS. His powers and duties directly to their positions with the BS.
shall be to: They may not accept any other employment,
Prepare the agenda for the meetings of whether public or private, remunerated or ad
the MB and to submit for the honorem.
consideration of the Board the policies Exceptions: (1) Positions in
and measures necessary; eleemosynary, civic, cultural or religious
Execute and administer the policies and organizations or (2) whenever, by
measures approved by the MB; designation of the President, the
Direct and supervise the operations and Governor or the full-time member is
internal administration of the BS; tasked to represent the interest of the
Appoint and fix the remunerations and Government in matters connected with
other emoluments of personnel below or affecting the economy or the financial
the rank of a department head, as well as system of the country.
to impose disciplinary measures upon
personnel of the BS Sec. 21. Deputy Governors
NOTE: Removal of personnel shall The Governor of the BS, with the approval
be with the approval of the MB; of the MB, shall appoint not more than five
Render opinions, decisions, or rulings, Deputy Governors who shall perform
which shall be final and executory until duties as may be assigned to them by the
reversed or modified by the MB; Governor and the Board.
Exercise such other powers as may be In the absence of the Governor, a Deputy
vested in him by the MB. Governor shall act as chief executive of the
BS and shall exercise the powers and
Sec. 18. Representation of the Monetary Board perform the duties of the Governor.
and the Bangko Sentral Whenever the Governor is unable to attend
The Governor shall be empowered to: meetings of government boards or councils
Represent the MB and the BS in all in which he is an ex officio member, a
dealings with other offices; Deputy Governor shall be vested with
authority to participate and exercise the right
Sign contracts entered into by the BS,
to vote in such meetings.
notes and securities issued by the BS, all
reports and other documents of the BS;
ARTICLE IV. OPERATIONS OF THE BANGKO
Represent the BS in any legal
SENTRAL
proceedings, action or specialized legal
studies;
Sec. 23. Authority to Obtain Data and Information
Delegate his power to represent the BS BS shall have the authority to:
to other officers upon his own
Require any data for statistical and
responsibility.
policy development purposes in relation
NOTE: In order to preserve the integrity
to the proper discharge of its functions
and the prestige of his office, the Governor
and responsibilities
may choose not to participate in preliminary
NOTE: Disaggregated data gathered
discussions with any multilateral banking or
are subject to prevailing
financial institution. He may instead be
confidentiality laws;
represented by a permanent negotiator.
NEW CENTRAL BANK ACT (R.A. 7653)
Issue a subpoena for the production of arbitrary and made in bad faith and the
the books and records. Those who refuse petitioner files a bond in favor of the BS.
the subpoena without justifiable cause
shall be subject to contempt; Sec. 25-A. Authority to Approve Transfer of
Data on individual firms, other than banks, Shares
gathered by the BS shall not be made Transfers or acquisitions of at least 10% of
available to any person or entity outside of the voting shares in banks or quasi-banks
the BS shall require prior approval of the BS.
Exception: Unless under order of the In approving such transfers or acquisitions,
court or under such conditions as may be regard shall be given by the BS to the fitness
prescribed by the MB. of the incoming stockholders.
NOTE: Collective data on firms may be Transfer or actual control or management of
released to interested persons or the institution to new stockholders prior to
interests. BS approval shall make the transferor liable
under Sections 36 and 37 of this Act.
Sec. 25. Supervision and Examinations
The BS shall: Sec. 26. Bank Deposits and Investments
Have supervision over, and conduct Any director, officer, or stockholder who,
regular or special examinations of together with his related interests, contracts
banking institutions and quasi-banks, a loan or any form of financial
including their subsidiaries and affiliates accommodation from his bank, or from a
engaged in allied activities bank that is:
Subsidiary- a corporation more A subsidiary of a bank holding company
than 50% of the voting stock is of which both his bank and the lending
owned by a bank or quasi-bank bank are subsidiaries; or
Affiliate- a corporation the voting Controlling proportion of the shares is
stock of which, to the extent of 50% owned by the same interest that owns a
or less, is owned by a bank or quasi- controlling proportion of the shares of
bank; his bank in excess of 5% of the capital
Have the authority over, and conduct and surplus of the bank.
regular or special examinations of Such shall be required by the lending bank
entities subject to its jurisdiction; to waive the secrecy of his deposits of
Establish a mechanism for issues arising whatever nature in all banks in the
from bank examinations. Philippines.
The department heads and the examiners are Any information obtained from an
hereby authorized to: examination of his deposits shall be held
Administer oaths to any director, officer, strictly confidential and may be used by the
or employee of any institution under examiners only in connection with their
their respective supervision; supervisory and examination responsibility
Compel the presentation of all books, or by the BS in an appropriate legal action.
documents, papers or records relative to
the true condition of any institution Sec. 28. Examination and Fees
under examination; The supervising and examining department
No restraining order or injunction shall be head shall examine the operations of every
issued by the court enjoining BS from bank and quasi-bank in accordance with the
examining any institution subject to guidelines set by the MB.
supervision or examination. NOTE: There shall be an interval of at
Exception: Unless there is convincing least 12 months between regular
proof that the action of the BS is plainly examinations;
NEW CENTRAL BANK ACT (R.A. 7653)
NOTE: The MB, by an affirmative vote NOTE: The conservatorship is terminated
of at least five members, may authorize a on the ground that the institution can
special examination if circumstances operate on its own, the conservator shall
warrant. receive the balance of the remuneration.
The institution shall afford to the head of the NOTE: The conservatorship is terminated
supervising and examining departments full on other grounds, the conservator shall not
opportunity to examine its books and be entitled to such remaining balance.
records, cash and assets and general
condition. Sec. 30. Proceedings in Receivership and
NOTE: None of the reports relative to Liquidation
such examination shall be open to Whenever, the MB finds that a bank or
inspection by the public. quasi-bank:
Supervised institutions shall pay to the BS, Has been dormant for at least 60 days
no later than May 31 of each year, an or unable to pay its liabilities as they
annual supervision fee as may be prescribed become due in the ordinary course of
by the MB. business;
NOTE: Extraordinary demands
Sec. 28-A. Bangko Sentral Coordination induced by financial panic shall not
Suspension or revocation of any government be included.
license of Bangko Sentral-supervised entity Has insufficient realizable assets cannot
must be done only with prior consultation continue in business without involving
with the BS. probable;
Losses to its depositors or creditors;
Sec. 29. Appointment of Conservator Has willfully violated a cease-and-desist
When the MB finds that a bank or a quasi- order under Section 37 that has become
bank is in a state of continuing inability to final;
maintain a condition of liquidity, Under Section 29 of this Act shall be final
conservator may be appointed with such and executory, and may not be restrained or
powers as the MB shall: set aside by the court except on petition for
Deem necessary to take charge of the certiorari on the ground.
assets, liabilities, and the management Exception: May only be filed by the
thereof; stockholders of record representing the
Reorganize the management; majority of the capital stock within ten
Collect all monies and debts due said (10) days from receipt by the BOD
institution;
Exercise all powers necessary to restore Sec. 33. Disposition of Banking Franchise
its viability. The BS may:
Conservator shall: If public interest so requires
Be responsible to the MB; Award to an institution
Have the power to overrule or revoke Upon such terms and conditions as the
the actions of the previous management MB may approve
and BOD of the bank or quasi-bank; NOTE: Such award shall be subject to the
Be competent and knowledgeable in appropriate exclusive disposition.
bank operations and management;
Term shall not exceed one year; Sec. 34. Refusal to Make Reports or Permit
Receive remuneration to be fixed by the Examination
MB in an amount not to exceed two- Refusal shall be punished by a fine of not
thirds of the salary of the president in less than P50,000 nor more P2,000,000 or
one year. by imprisonment of not less than one year
NEW CENTRAL BANK ACT (R.A. 7653)
nor more than five years, or both, in the The MB shall publish and submit the
discretion of the court. following reports to the President and to the
Congress:
Sec. 37. Administrative Sanctions on Banks and Not later than 90 days after the end of each
Quasi-banks quarter, an analysis of economic and
The following are administrative sanctions, financial developments;
whenever applicable: The preceding year's budget and profit and
Fines in amounts as may be determined loss statement of the BS, within 90 days
by the MB, but in no case to exceed 1 after the end of the year 120 days after the
million pesos for each transactional end of each;
violation or P100,000 per calendar day; Semester, a review of the state of the
NOTE: A fine no more than three financial system;
times the profit gained, or loss Not later than 72 hours after they are taken,
avoided may also be imposed. remedial measures in response to such
Suspension of rediscounting privileges abnormal movements.
or access to BS credit facilities;
Suspension of lending or foreign Sec. 40. Annual Report
exchange operations or authority to Before the end of June of each year, the BS
accept new deposits or make new shall publish and submit to the President and
investments; the Congress an annual report on the
Suspension of interbank clearing condition of the BS.
privileges; The annual report shall also include, as a
Revocation of quasi-banking license. minimum, the following data:
NOTE: The case should be not finally The monthly movement of monetary
decided by the BS within a period of 120 aggregates and their components;
days after the date of suspension. The monthly movement of purchases
NOTE: That when the delay in the and sales of foreign exchange and of the
disposition of the case is due to the fault, international reserves of the BS;
negligence or petition of the director or The balance of payments of the
officer, the period of delay shall not be Philippines;
counted in computing the period of Monthly indices of consumer prices and
suspension. of import and export prices;
The monthly movement, in summary
Sec. 38-A. Issuance of Injunctive Relief against form, of exports and imports, by volume
Bangko Sentral Actions and value;
The Court of Appeals and Supreme Court The monthly movement of the accounts
shall be the only courts who will issue any of the BS and of other banks;
temporary restraining order, preliminary The principal data on government
injunction or mandatory. receipts and expenditures and on the
status of the public debt, both domestic
ARTICLE V. REPORTS AND PUBLICATIONS and foreign; and
The texts of the major legal and
Sec. 39. Reports and Publications
administrative measures.
The BS shall publish a general balance
sheet showing the volume and composition
Sec. 41. Signatures on Statements
of its assets and liabilities as of the last
The balance sheets and other financial
working day of the month within 90 days
statements of the BS shall be signed by the:
after the end of each month.
Officers responsible for their
preparation;
NEW CENTRAL BANK ACT (R.A. 7653)
Governor; Authorized to appoint a representative
Auditor of the BS. who shall be the auditor
Wherein representative must be:
ARTICLE VI. PROFITS, LOSSES, AND a. A Certified Public Accountant
SPECIAL ACCOUNTS with at least ten years’
experience
Sec. 43. Computation of Profits and Losses b. No relative member within the
Net profits or losses shall determine within sixth degree of consanguinity
the first 60 days at the end of each year.
Calculation of net profits shall have CHAPTER II
adequate allowance or reserves for bad and THE BANGKO SENTRAL AND THE MEANS
doubtful accounts. OF PAYMENT
Sec. 97. Required Reserves Against Foreign Sec. 102. Interbank Settlement
Currency Facilities for interbank clearing – may
The MB is authorized to prescribe and charge administrative and other fees for the
modify the minimum reserve ratios maintenance of such facilities.
applicable to deposits denominated in Any bank which incurs on overdrawing in
foreign currencies. its deposit account with the BS shall fully
cover said overdraft, including interest
Sec. 98. Reserves Against Unused Balances of thereon, whichever is higher and not later
Overdraft than the next clearing day:
The MB may establish minimum reserve At a rate equivalent to one-tenth of one
requirements for unused balances of percent per day
overdraft lines. Prevailing 91-day treasury bill rate plus
The power to do so shall be the same as its three percentage points
powers with respect to reserve requirements Settlement of clearing balances shall not be
against demand deposits. effected for any account which continues to
be overdrawn for five consecutive banking
Sec. 99. Increase in Reserve Requirements days.
Increases shall be made in a gradual manner
and shall not exceed four percentage points Sec. 103. Exemption from Attachment and Other
in any 30-day period. Purposes
Exempt from attachment, garnishment, or
Sec. 100. Computation on Reserves any other order or process of any court,
Daily calculation is based on the amount of government agency or any other
the institution’s reserves and the amount of administrative body issued
its liability accounts against which reserves
are required to be maintained. ARTICLE VIII. SELECTIVE REGULATION OF
BANK OPERATIONS
Sec. 101. Reserve Deficiencies
Applicable when the reserve position is Sec. 104. Guiding Principle
below the required minimum Ensure that the supply, availability and cost
A payment of one-tenth of one percent per of money are in accord with the needs of the
day on the amount of the deficiency or the Philippine economy
prevailing ninety-one-day treasury bill rate Bank credit is not granted for speculative
plus three percentage points, whichever is purposes prejudicial to the national interests
higher
That banks and quasi-banks shall be: Sec. 105. Margin Requirements Against Letters of
Permitted to offset any reserve Credit
deficiency occurring on one or more Prescribe minimum cash margins for the
days of the week with any excess opening of letters of credit
reserves
NEW CENTRAL BANK ACT (R.A. 7653)
May relate the size of the required margin to The BS shall act as a banker of the
the nature of the transaction to be financed Government, its political subdivisions and
instrumentalities
Sec. 106. Required Security Against Bank Loans
May issue such regulations as it may deem Sec. 111. Representation with the International
necessary with respect to the maximum Monetary Fund
permissible maturities of the loans and The BS shall represent the Government in
investments which the banks may make, and all dealings, negotiations and transactions
the kind and amount of security to be with the International Monetary Fund
required against the various types of credit Shall carry such accounts as may result from
operations of the banks Philippine membership in, or operations
with, said Fund
ARTICLE II. THE MARKETING AND Sec. 123. Financial Advice on Official Credit
STABILIZATION OF SECURITIES FOR THE Operations
ACCOUNT OF THE GOVERNMENT Before undertaking credit operation Abroad,
the Government:
A. THE ISSUE AND PLACING OF Through the Secretary of finance shall
GOVERNMENT SECURITIES request the opinion, in writing of the MB
contemplated action.
Sec. 117. Issue of Government Obligations The opinions must similarly be requested
The BS may act as an agent for issuing by all political subdivisions and
securities which represent as government instrumentalities of the Government
obligations. before undertaking the credit operation.
The MB’s opinion shall base on the gold and
Sec. 118. Methods of Placing Government foreign exchange resources and obligations
Securities of the nation and on the effects of the
The BS may: proposed operation.
Place the securities through direct sale to Prior opinion shall be requested in order that
financial institution and the public; Board may render opinion on the probable
Not a member of any stock exchange or effects of the following:
syndicate’ Monetary aggregates
Reimburse expenses incurred in placing Price level
the securities from the government, or Balance payment
political subdivision. NOTE: No prior MB opinion shall be
required for individual drawdowns or
B. BANGKO SENTRAL SUPPORT OF THE borrowings within approved credit lines.
GOVERNMENT SECURITIES MARKET
Sec. 124. Representation on the National
Sec. 120. The Securities Stabilization Fund Economic and Development Authority
Operations of S.S.F. consist of: Deputy Governor shall be an ex officio
Purchases and sales member of the National Economic and
In the Open market, of Bonds Development Authority of the Board.
Other evidences of indebtedness
CHAPTER VI
NEW CENTRAL BANK ACT (R.A. 7653)
PRIVILEGES AND PROHIBITIONS Equipment for note production,
minting of coins, metal refining and
ARTICLE I. PRIVILEGES for security printing operations shall
be fully exempt from all customs
Sec. 125. Tax Exemptions duties and regular fees and other
The BS shall be exempt for a period of five taxes, assessments and charges
years from the approval of this Act from all related to importations or
national, provincial, municipal and city exportation.
taxes, fees, charges and assessments.
Where Exemptions to Authorized Sec. 127. Applicability of the Civil Service Law
Representative Apply: General Purpose: to insure and promote the
All property of the BS; constitutional mandate regarding
Resources; appointments only according to merit and
Receipts; fitness, and to provide within the public
Expenditures; service a progressive system of personnel
Profits and income of the BS; administration to insure the maintenance of
Contracts and deeds; an honest, efficient, progressive and
courteous civil service in the Philippines.
Documents and transaction related to the
(Sec 2. R.A 2260)
conduct of the business.
Appointments in the BS, shall be made only
When BS is liable, exemptions apply only:
according to the Civil Service Law and
Taxes;
regulations.
Fees;
Exceptions: (1) Those policy-
Charges; determining; (2) confidential; (3) highly
Assessments. technical in nature
NOTE: The exemptions shall not The MB or Governor may appoint personnel
apply if persons or other entities are in the BS without the prior approval of
doing business with the BS. government agency to not disrupt the
Provided, further, that foreign loans and operations of the BS if the services are
other obligations of the BS shall be exempt, deemed necessary.
both as to principal and interest, from any
and all taxes if the payment of such taxes ARTICLE II. PROHIBITIONS
has been assumed by the BS.
Sec. 128. Prohibitions
Sec. 126. Exemption from Customs Duties The BS shall not:
Custom Duties- refers when there is import Acquire shares of any kind or accept
or exportation of goods there is tax imposed them as collateral,
as it is transported across international
Participate in the ownership or
borders.
management of any enterprise.
Importations into the Philippines are subject
Engage in development banking or
to customs duties and taxes unless there is a
financing, however, the outstanding
specific legal basis for exemption from
loans obtained or extended for
duties and/or taxes.
development financing shall not be
Exception: When the BS importation
affected by the prohibition.
and exportation is needed for the
operation of the bank such as:
CHAPTER VII TRANSITORY PROVISIONS
Notes;
Coins;
SEC. 129. Phase-out of Fiscal Agency Functions
Gold and other metals
NEW CENTRAL BANK ACT (R.A. 7653)
The BS shall phase-out all fiscal agency NOTE: All actions taken by the Bangko
functions: Sentral Monetary Board under this section
Within a period of three years and not shall be reported to Congress and the
exceeding five years President within 30 days.
Should be approved by the Congress
Oversight Committee. SEC. 133. Mandate to Organize
No preferential or priority right shall be
Sec. 130. Phase-out of Regulatory Powers Over given to any personnel
the Operations of Finance Corporations and Personnel have no prior or vested rights
Other Institutions Performing Similar Functions even he incumbent similar position prior to
The BS shall, within a period of five years organization.
from the effectivity of this Act, phase out its NOTE: The formulation of the program of
regulatory powers over finance companies organization shall be completed within six
without quasi-banking functions and other months after the effectivity of this Act, and
institutions performing similar functions. shall be fully implemented within a period
of six months thereafter
Sec. 131. Implementing Details
BS shall be operational by the performance SEC. 134. Separation Benefits
through these acts: The MB is authorized to provide separation
Appointing members within 60 days incentives, and all those who shall retire or
after effectivity of this Act be separated from the service on account of
Transfer of asset and liabilities from the reorganization.
Central Bank to the BS shall be
completed within 90 days from the SEC. 136. Transfer of Powers
constitution of the MB. All powers, duties and functions vested by
law in the Central Bank of the Philippines
Sec. 132. Transfer of Assets and Liabilities not inconsistent with the provisions of this
Three members of the MB, shall determine Act shall be deemed transferred to the
the assets and liabilities of the Central Bank Bangko Sentral ng Pilipinas.
which may be transferred.
Guidelines:
The MB and the Secretary of Finance
shall have primary responsibility
Creative monetary
Financial solution.
The BS shall remit 75% of its net profits
to:
Special deposit account or,
National Treasury.
Transfer shall be limited to an amount
that will enable the BS to perform its
responsibilities adequately.
Liabilities to be assumed by the BS shall
include liability for notes and coins in
circulation.
Any asset or liability of the Central Bank
not transferred to the BS shall be
retained and administered, disposed of
and liquidated by the Central Bank.