Regulatory Framework and Legal Issues in Business

MODULE 2: LESSON 2
For April 1, 2020
For BSA 2 and BSMA 2
Prepared by: Atty. Angelo Andro M. Suan, CPA

LESSON/TOPIC : AN ACT PROVIDING FOR THE REGULATION OF THE ORGANIZATION AND

OPERATIONS OF BANKS, QUASI-BANKS, TRUST ENTITIES AND FOR OTHER
PURPOSES

Learning Target(s) : To point out the coverage of the law penalizing issuing and
drawing checks with insufficient fund
Reference : http://www.bsp.gov.ph/downloads/Regulations/gba.pdf

Concept:

Banking law is the broad term for laws that govern how banks and other financial institutions
conduct business. Banks must comply with a myriad of federal, state and even local regulations.
Lawyers perform a wide variety of functions that relate to creating, following and enforcing
regulations

Banking laws may exist in order to achieve many objectives. Some of these objectives include:

 Provide transparency for consumers

 Reduce risk for banking customers
 Avoid misuse of banks for purposes like money laundering
 Allow consumers to bank with confidentiality
 Prevent other crimes
 Prioritize bank lending according to economic and social priorities
 Provide fair banking and equal opportunities for banking
 Prevent terrorism
 Create fair debt collection practices
 Make credit card agreements fair to consumers
 Prevent banks from making unfair loans to insiders like officers and principal
shareholders
 Allow customers to reasonably raise disputes

Questions:

Answer the following, in a yellow sheet of paper. It must be handwritten. Further, do not
write anything at the back of the sheet.

1. Should a bank be 100 % Filipino owned? Discuss

2. Discuss the Fit and proper rule
3. What is risk based capital. discuss