DUMAGUETE CITY—The Bangko Sentral ng Pilipinas (BSP) expects it will take at least five more years to reach its ₱200 billion capitalization target, as the central bank continues to feel the impact of the ₱46 billion it was mandated to divert into the Maharlika Investment Fund.

BSP Deputy Governor Elmore Capule told reporters during a media information session that the timeline for recapitalization hinges on the central bank maintaining its current revenue trajectory and avoiding unforeseen economic shocks.

“Assuming we continue to earn at our current level, and provided there are no other constraints or extraordinary events, regular contributions to our capital could resume, possibly in five years,” Capule said on Monday, Feb 2. 

The central bank’s ability to build up its capital base was interrupted when legislation required it to provide seed funding for the sovereign wealth fund manager, a move that siphoned off dividends that otherwise would have been used to bolster the regulator’s own balance sheet.

However, Capule’s estimate is shorter than former BSP Deputy Governor Francisco G. Dakila Jr.’s rough estimate that legislating Maharlika could defer the central bank’s capital buildup by up to 14 years, given that the BSP would be obliged to infuse seed capital into the SWF manager.

Capule, who oversees BSP’s corporate services sector, noted that the central bank infused approximately ₱46 billion into Maharlika over two years, adding that this amount could have been added to the BSP’s capital had there been no Maharlika. He estimated the untrimmed capital to be around ₱120 billion.

Such a diversion of capital caused a delay in achieving the central bank’s target of ₱200 billion in capital. As of October 2025, the central bank’s capital stood at 60 percent, which had steadied at this level since December 2022.

Meanwhile, Capule explained that a catch-up plan to accelerate recapitalization “depends on the dividends of the BSP,” which are tied to its operations.

Consequently, the BSP cannot implement a "catch-up plan" to accelerate this process because it is not a profit-making entity and must prioritize its regulatory duties regardless of whether its operations generate a surplus.

He stressed that the BSP is not a profit-making institution, meaning earning profits is secondary to its core mandate of maintaining financial stability. “Profit is incidental to our operations. Our objective is financial stability; if we earn from it, that is good. But that is not our mandate,” Capule asserted.

“A catch-up plan isn’t possible if we don’t earn. The BSP cannot simply decide to generate profit—it must focus on fulfilling its mandate, regardless of whether it earns,” added the deputy governor.

As of end-October 2025, the BSP’s income dropped to ₱108.2 billion from ₱113.1 billion in the same period in 2024.

Total revenues fell by 12.3 percent year-on-year to ₱231.7 billion, even as interest income grew slightly to ₱203.5 billion. This revenue drop was partially offset by a 7.9 percent reduction in total expenses, which fell to ₱167.8 billion due to lower interest costs.

Further, the central bank’s bottom line at end-October 2025 was bolstered by ₱44.3 billion in net gains from foreign exchange (FX) rate swings, jumping by over two-fifths from the ₱31.4 billion recorded in the previous year.

Historical data from the Treasury showed that the BSP remitted ₱55.6 billion in dividends in 2023, ₱53.2 billion in 2024, and ₱18.9 billion as of end-November 2025.