Unibersidad de Manila

College of Law

BANKING LAWS
Atty. Mazna delos Reyes Lutchavez

I. General Banking Law (R.A. No. 8791)

A. Definition and Classification of Banks (Sections 1 to 3, 8 to 22)
B. Distinction of Banks from Quasi-Banks and Trust Entities (Sections 4 to 7)
C. Bank powers and liabilities (Sections 34 to 53)
D. Diligence required of banks
Cases:
1. Consolidated Bank vs CA & Diaz, G.R. No. 138569, September 11,
2003
2. PNB vs CA, G.R. No. 127469, January 15, 2004
3. PNB vs Pike, G.R. No. 157845, September 20, 2005
4. BPI vs Lifetime Marketing, G.R. No. 176434, June 25, 2008
5. BPI vs Casa Montessori, G.R. No. 149454, May 28, 2004
6. Central Bank vs Citytrust Bank, G.R. No. 141835, Feb. 4, 2009
E. Nature of bank funds and bank deposits (Section 33)
Cases:
1. Allied Bank vs Lim Sio Wan, G.R. No. 133179, March 27, 2008
2. Associated Bank vs Tan, G.R. No. 156940, December 14, 2004
F. Stipulation of Interests
G. Grant of Loans and Security Requirements (Sections 37 to 47)
Cases:
1. Benguet Management vs Keppel Bank, G.R. No. 153571, September
18, 2003
2. San Fernando Rural Bank vs Pampanga, G.R. No. 168088, April 3,
2007
H. Prohibited Acts of Borrowers

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 I. Ownership of banks
J. Directors and Officers

II. New Central Bank Act (R.A. 7653)

A. State Policies (Section 1)
B. Creation of the Bangko Sentral ng Pilipinas (Section 2)
C. Responsibility and Primary Objective (Section 3)
D. Monetary Board; Powers and Functions (Section 5 to 16)
E. Conservatorship
F. Receivership and Liquidation
Cases:
1. Rural Bank of Lucena vs Arca, G.R. No. L-21146, September 20, 1965
2. Lipana vs Development Bank of Rizal, 154 SCRA 257
3. Provident Savings Bank vs CA, 222 SCRA 125
4. Manalo vs CA, G.R. No. 141297, October 8, 2001
5. Larrobis vs. Phil. Veterans Bank, G.R. No. 135706, October 1, 2004
6. Fidelity Savings and Mortgage Bank vs Cenzon, 184 SCRA 141.
G. Judicial Review

III. Other Related Laws

A. Law on Secrecy of Bank Deposits (R.A. 1405, as amended)
A.1. Purpose
A.2. Coverage
A.3. Prohibited Acts
A.4. Exceptions
A.5. Other Laws Relating to Secrecy of Bank Deposits
A.5.1 Foreign Currency Deposit Act (R.A. No. 6426)
A.5.2 General Banking Law of 2000 (R.A. No. 8791)
A.5.3. New Central Bank Act (R.A. No. 7653)

A.5.4. Human Security Act (R.A. No. 9372)

Cases:

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 1. PSBank vs Senate, G.R. 200238, February 9, 2012 (Resolution, Brion
concurring and Serreno’s Dissenting)
2. BSB Group vs. Sally Go, G.R. No. 168644, February 16, 2010
3. GSIS vs Industrial Bank of Korea, G.R. No. 189206, June 8, 2011

4. Ejercito vs Sandiganbayan, G.R. Nos. 157294-95, November 30, 2006

B. Anti-Money Laundering Act of 2001

B.1. Purpose
B.2. Covered Entities
B.3. Covered Transactions
B.4. Suspicious Transactions
B.5. Money Laundering
B.6. Jurisdiction
B.7. Power to Freeze Account

C. Philippine Deposit Insurance Corporation (PDIC) Act (R.A. 9302)

C.1. Insurance
C.2. Bank Examination
C.3. Bank Rehabilitation
C.4. Receivership of Closed Banks
C.5. Liquidation of Closed Banks

D. Unclaimed Balances Law (R.A. No. 3936)

D.1. Elements

E. Foreign Currency Deposit Act (R.A. No. 6426)

F. Terrorism Financingand Prevention and Suppression Act (R.A. No. 10168)

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