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.
Classification of 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.
(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.
These area.savings and mortgage banks,b.stock savings and loanassociations, andc.private development banks
These are banks organized primarily tomake financial and credit servicesavailable to cooperative 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.
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)
Organization of Banks
Conditions for Organization
Conditions for organization:
Entity must be a stock corporationand must only issue par value stocks;
Its funds must be obtained fromthe public, (20 or more persons); and
Minimum capital requirementsprescribed by the MB for each
REVIEWER IN COMMERCIAL LAW
Chapter I. General Banking Law of 2000