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RA 265 Section 86

Guiding principles.

Section 86

SEC. 86. Guiding principles.—The rediscounts, discounts, loans and advances which the Central Bank is authorized to extend to banking institutions under the provisions of the present article of this Act shall be used to regulate the volume, cost availability and character of bank credit and to provide the banking system with liquid funds in times of need. In periods of inflation, or as long as inflationary dangers exist, the Central Bank shall refrain from extending credit to banks and at such times shall grant credit only in exceptional cases where special circumstances justify a deviation from the principle stated herein. Conversely, whenever the national monetary policy requires an expansion of the money supply, the Central Bank shall make full use of the credit operations authorized under the present article of this Act. B. NORMAL CREDIT OPERATIONS

Read the full instrument → · Open the chapter this section belongs to: CHAPTER IV.—INSTRUMENTS OF CENTRAL BANK ACTION →

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗

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

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