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RA 265 Section 41

Distribution of net profits.

Section 41

SEC. 41. Distribution of net profits.—Within the first sixty 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 rules: (a) Twenty-five per cent (25%) of the net profits shall be carried to surplus until such time as the total capital accounts of the Bank reach a sum equivalent to at least ten per cent (10%) of the total assets of the Bank less its assets in gold and foreign currencies; (b) Any net profits remaining after fulfilling the conditions established in subsection (a) of this section shall be used to increase the resources of the Securities Stabilization Fund, until the volume and liquidity of the Fund's assets are considered ample for any open market operations in which the Fund is deemed likely to engage; (c) Any net profits remaining after fulfilling the conditions of subsections (a) and (b) of this section shall be used to reduce the Account to Secure the. Coinage or the Monetary Adjustment Account until said accounts shall have been liquidated. The Monetary Board shall determine the distribution between these two accounts; (d) If any net profits remain after fulfilling the conditions of subsections (a), (b) and (c) of this section, the balance or any part thereof may be transferred, to surplus, or may be used to liquidate Government obligations to the Central Bank, or may be paid into the General Fund of the Government. The Monetary Board shall determine this distribution.

Read the full instrument → · Open the chapter this section belongs to: CHAPTER I.—Establishment and Organization the Central Bank of the Philippines →

Other provisions in CHAPTER I.—Establishment and Organization the Central Bank of the Philippines

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of 2026-07-04

CitationRA 265 Section 41 (LawPlayer, data as of 2026-07-04)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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