Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
Banking Edited

Banking Edited

Ratings: (0)|Views: 23|Likes:
Published by cmv mendoza
Uncategorized stuff from my 2011 Bar Examinations Commercial Law folder (yup, too lazy to organize the stuff. Sorry!)
Uncategorized stuff from my 2011 Bar Examinations Commercial Law folder (yup, too lazy to organize the stuff. Sorry!)

More info:

Published by: cmv mendoza on Dec 15, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

12/15/2011

pdf

text

original

 
  B   A   N   K I   N   G   L   A    W  s
Page 131 of 278
BANKING LAWS
CHAPTER I. GENERAL BANKINGLAW OF 2000 (RA 8791)I.General Concepts
A.DefinitionB.Nature of Business
II.Classification of BanksIII.Authority of the BSP overBanks
A.Regulatory PowersB.Supervisory PowersC.Policy Direction
IV.Organization of Banks
A.Conditions for OrganizationB.Ownership of BanksC.Directors and Officers
V.Operation of Banks
A.Core BankingB.Operations of a KB and UBC.Prudential MeasuresD.Other FunctionsE.Prohibited FunctionsF.Some Requirements for theOperation of Banks
VI.Foreign Banks132132
132132
133133
133133133
134
134134135
137
137139139142145146
147CHAPTER II. THE NEW CENTRALBANK ACT (RA 7653)I.General ProvisionII.Organization of the BSP
A.Monetary BoardB.Governor/DeputyGovernor
III.Operation of the BSP
A.Supervision and ExaminationB.Handling of Banks in DistressC.Monetary AdministrationD.As Banker and FinancialAdviser of the GovernmentE.Other OperationsF.Prohibited Operations
149149149
149150
150
150150152156157157
CHAPTER III. LAW ON SECRECOF BANK DEPOSITS (RA 1405)I.PurposesII.CoverageIII.Prohibited ActsIV.ExceptionsV.Penalty159159159159159160CHAPTER IV. TRUTH IN LENDINGACT (RA 3765)I.PolicyII.Disclosure StatementIII.CoverageIV.Sanctions161161161161161CHAPTER V. ANTI-MONEY LAUNDERING ACT (RA 9160 asamended by RA 9194)I.PoliciesII.CoverageIII.Obligations of CoveredInstitutions
A.Customer IdentificationB.Record KeepingC.Reporting of Covered andSuspicious Transactions
IV.Freeze OrderV.Forfeiture ProvisionsVI.Anti-Money LaunderingCouncil162162162163
163163163
164164165CHAPTER VI. FOREIGNCURRENCY DEPOSIT ACT (RA6426)I.ConfidentialityII.Privileges167167167
REVIEWER IN COMMERCIAL LAW
 Table of Contents
 
Banking Laws
FACULTY-STUDENT EDITORIAL BOARD AND LECTURES COMMITTEE
Prof. Gwen Grecia-de Vera
F
ACULTY
E
DITOR
ACADEMICS COMMITTEE
Samantha Poblacion
D
IRECTOR
 
FOR
A
CADEMICS
E
DITOR
-
IN
-C
HIEF
Rania Joya
D
EPUTY
D
IRECTOR
 
FOR
A
CADEMICS
L
AYOUT
H
EAD
--------Kae Guerrero
P
RINTING
 
AND
D
ISTRIBUTION
COMMERCIAL LAW
Krizelle PoblacionChristina Ortua
 
S
UBJECT
E
DITORS
CORPORATION LAW
Rency Corrige
L
EAD
W
RITER
Ben EvangelistaRaissa Villanueva
W
RITERS
LECTURES
Edel Cruz
H
EAD
 Jason Mendoza
D
EPUTY
H
EAD
Malds Menzon
L
OGISTICS
, HR
--------Leo Zulueta
L
OGO
, C
OVER
 
AND
T
EMPLATE
D
ESIGN
Chapter I. General Banking Lawof 2000 (RA 8791)
I.GENERAL CONCEPTS
A.DEFINITIONB.NATURE OF BUSINESS
II.CLASSIFICATION OF BANKSIII.AUTHORITY OF THE BSP OVER BANKS
A.REGULATORY POWERSB.SUPERVISORY POWERSC.POLICY DIRECTION
IV.ORGANIZATION OF BANKS
A.CONDITIONS FOR ORGANIZATIONB.OWNERSHIP OF BANKSC.DIRECTORS AND OFFICERS
V.OPERATION OF BANKS
A.CORE BANKINGB.OPERATIONS OF A KB AND UBC.PRUDENTIAL MEASURESD.OTHER FUNCTIONSE.PROHIBITED FUNCTIONSF.SOME REQUIREMENTS FOR THEOPERATION OF BANKS
VI.FOREIGN BANKS
Policy of the Law:
 To
 
promote andmaintain a stable and efficient bankingand financial system that is globallycompetitive, dynamic and responsive tothe demands of a developing economy.(Sec. 2)
I.General ConceptsA.Definition
Banks shall refer to entities engaged inthe lending of funds obtained in the formof deposits. (Sec. 3.1)
As opposed to Quasi-banks:
Quasi-banks (QB) refer to entities engagedin the borrowing of funds through theissuance, endorsement or assignment withrecourse or acceptance of depositsubstitutes for purposes of relending orpurchasing of receivables and otherobligations. (last paragraph of Sec. 4)
B.Nature of Business
Imbued with Public Interest:
 The banking industry is declared asindispensable to the national interest.(Sec. 22)
Fiduciary Nature of Banks
Failure on the part of the bank tosatisfy the degree of diligencerequired of banks may warrant theaward of damages
Under Sec. 2, the degree odiligence is “high standards of integrity and performance,however, SC decisions has notbeen uniform as to the type of diligence required
Highest degree of care (BPIvs. CA and Napiza 2000)
Higher than diligence of agood father of a family (CBTCvs. CA 2003)
Highest degree of care anddiligence (SamsungConstruction vs FEBTC 2004)
notwithstanding the amount of diligence required, a bank is notexpected to be infallible(Prudential Bank vs. CA 2000)
REVIEWER IN COMMERCIAL LAW
Chapter I. General Banking Law of 2000
 
Simex International vs. CA183 SCRA 360 (1990):
As a business affected with public interest andbecause of the nature of its functions, the bankis under obligation to treat the accounts of itsdeposits with meticulous care, always having inmind the fiduciary nature of their relationship.
 
II.
Classification of Banks
(Sec. 3.2)
Universal Banks
. (UB) These are those that used to be calledexpanded commercial banks and whoseoperations are now primarily governed bythe GBL. They can exercise the powers of an investment house and invest in non-allied enterprises. They have the highestcapitalization requirement.
Commercial Banks.
(KB) These are ordinary or regular commercialbanks, as distinguished from a universalbank. They have a lower capitalizationrequirement than a UB and cannotexercise the powers of an investmenthouse and invest in non-allied enterprises.
Thrift Banks.
  These area.savings and mortgage banks,b.stock savings and loanassociations, andc.private development banks
Cooperative Banks.
  These are banks organized primarily tomake financial and credit servicesavailable to cooperative banks.
Islamic Banks
. These are banks whose business dealingsand activities are subject to the basicprinciples and rulings of Islamic Shari’a,such as the Al Amanah Islamic InvestmentBank of the Philippines which was createdby RA 6848
Other classifications of banks
 as determined by the Monetary Board.
III.
Authority of the BSP OverBanks
A. Supervision over operations andactivities
a. Issuance of rules of conduct orstandards of operation for uniformapplication to all institutions or functionscovered;b. Conduct of examination to determinecompliance with laws and regulations;c. Overseeing compliance with laws andregulations;d. Regular investigation (not oftener thanonce a year) to determine whether aninstitution is conducting its business onsafe or sound basis;e. Inquiring into solvency and liquidity of the institutionf. Enforcing prompt corrective action. (Sec.4)
B. Examination by BSP
-The BSB shall, when examining a bank,have the authority to examine anenterprise which is wholly or majority-owned or controlled bank (Sec. 7)
C. Authority over Quasi-Banks andTrust Entities
-BSP shall have supervision overoperations of and exercise regulatorypowers over quasi banks, trust entitiesand other financial institutions whichunder special laws are subject to BSPSupervision.
D. BSP Powers on Policy, Direction;Ratios, Ceilings and Limitations
1. BSP shall provide policy direction in theareas of money, banking and credit-the MB may prescribe rations, ceilings,limitations, or other forms of regulation onthe different types of accounts andpractices of banks and quasi-banks-this should conform to internationallyaccepted standards2. MB may exempt particular categories of transactions from such ratios, ceilings andlimitations, but not limited to exceptionalcases, or to enable a bank or quasi-bankunder rehabilitation or during a merger orconsolidation, to continue in business withsafety to its creditors, depositors andgeneral public. (Sec. 5)
IV.
Organization of Banks
A.
Conditions for Organization
Conditions for organization:
1.
Entity must be a stock corporationand must only issue par value stocks;
2.
Its funds must be obtained fromthe public, (20 or more persons); and
3.
Minimum capital requirementsprescribed by the MB for each
REVIEWER IN COMMERCIAL LAW
Chapter I. General Banking Law of 2000

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->