Regulatory Framework and Legal Issues in Business

MODULE 3: LESSON 3
For April 3, 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. What is conservatorship
2. What is receivership.
3. Enumerate other laws governing banks
4. What is a trust business