Distinction Universal Banks Commercial Banks Rural Banks Cooperative Thrift banks Islamic banks

banks
LAW RA 8791, GENERAL RA 8791, GENERAL RA 7353 "Rural Banks Republic Act No. Republic Act No. Republic Act No.
CREATING/ BANKING LAW 2000 BANKING LAW 2000 Act" 6938 Cooperative 7906 "Thrift Banks 6848 "Charter of Al
GOVERNING Code Act" Amanah Islamic
Investment Bank of
the Philippines
POWERS  can exercise the  can neither These are a) Savings Mandated to Those banks Banks whose
powers of an exercise the and mortgage banks; b) make needed organized whose business dealings
investment house and powers of an Stock savings and loan credit available majority shares are and activities are
invest in non‐allied investment house associations; c) Private and readily owned and controlled subject to the basic
enterprises and have nor invest in non‐ development banks accessible in the by cooperatives principles and
the highest allied enterprises. rural areas on primarily to provide rulings of Islamic
capitalization  The total reasonable terms financial and credit Shari’ a, such as the
requirement(sec. 23). investment in services to Al Amanah Islamic
 The total investment equities of allied cooperatives. It shall Investment Bank of
in equities of allied enterprises shall include cooperative the Philippines
and non-allied not exceed thirty- rural banks.
enterprises shall not five percent (35%)
exceed fifty percent of the net worth of
(50%) of the net the bank;
worth of the bank;  The equity
 The equity investment investment in any
in any one enterprise, one enterprise
whether allied or non- shall not exceed
allied, shall not exceed twenty-five
twenty-five percent percent (25%) of
(25%) of the net the net worth of
worth of the bank. the bank.

DEMAND CAN accept or create CAN accept or CANNOT CAN accept or CANNOT CAN CANNOT CAN accept CANNOT CAN
DEPOSIT demand deposit create demand create demand deposit accept or create or create demand accept or create
deposit except upon prior demand deposit deposit except upon demand deposit
approval of, and subject except upon prior prior approval of, and except upon prior
to such conditions and approval of, and subject to such approval of, and
rules as may be subject to such conditions and rules subject to such
 prescribed by the conditions and as may be prescribed conditions and rules
Monetary Board. rules as may be by the Monetary as may be
prescribed by the Board. prescribed by the
Monetary Board. Monetary Board.

CONSERVATORSHIP (sec. 29 NCBA) RECEIVERSHIP (SEC30) LIQUIDATION (SEC 30)

Grounds
1.Continuing inability
2.Unwilling‐ness to maintain condition of 1. Inability to pay liabilities as they fall due e.g: bank run, 1. Insolvency
liquidity rumors, etc. 2. Bank cannot be rehabilitated
2. Assets are less than its liabilities
3. Cannot continue business It is an act of settling a debt by payment or
4. without causing damage; other satisfaction. It is also the act or process of
The conservatorship shall not exceed one 5. Violation of a cease and desist converting assts into cash especially to settle
(1) year. 6. “Bank holiday” for more than 30 days. (Sec. 30) debts

conservator receiver liquidator

 The conservator shall report and be  the Monetary Board may summarily and without need for
responsible to the Monetary Board prior hearing forbid the institution from doing business in
and the Philippines and designate the Philippine Deposit
 shall have the power to overrule or Insurance Corporation as receiver of the banking institution.
revoke the actions of the previous  For a quasi-bank, any person of recognized competence in
management and board of directors banking or finance may be designated as receiver.
of the bank or quasi-bank.  The receiver shall determine as soon as possible, but
not later than ninety (90) days from take-over,
 To take charge of the assets, whether the institution may be rehabilitated or
liabilities, and the management otherwise placed in such a condition so that it may be
thereof permitted to resume business with safety to its
 Recognize the management depositors and creditors and the general public.
 collect all monies and debts due said  If the receiver determines that the institution cannot
bank be rehabilitated or permitted to resume business in
 Exercise all powers necessary to accordance with the next preceding paragraph, the
restore its viability with the power to Monetary Board shall notify in writing the board of
 overrule or revoke the actions of the directors of its findings and direct the receiver to
previous management and board of proceed with the liquidation of the institution.
directors of the bank or quasi‐bank
(First Philippine International Bank
vs. CA, G.R. No. 115849, Jan. 24,
1996).
When terminated
 When MB is satisfied that the institution
can continue to operate on its own and
the conservatorship is no longer
necessary.
 WHEN on the basis of the report of the
conservator or of mb’s own findings,
determine that the continuance in
business of the institution would involve
probable loss to its depositors or
creditors, in which case the provisions of
Section 30 shall apply
Effects:
1.Juridical personality is retained. Same with conservatorship
2.Perfected transactions cannot be 1. Juridical personality is retained
repudiated; 2. Suspension of operation /stoppage of business
3. Assets deemed in custodia legis (Domingo v. NLRC,
G.R. 156761, Oct 17, 2006