GSIS v. SEC.

VILLANUEVA
GR. 210773, January 23, 2019

ANTECEDENT:
 July 22, 169, ROYAL SAVINGS BANK (organized and incorp. As a THRIFT BANK
 July 28, 1984, it filed for application with the Central Bank of the Philippines for
appointment of a conservatorDENIED placed it under receivership.
 Royal Savings Bank filed several complaint against Central Bank for grave abuse of
discretion
 (to amicably settle the cases ) Central Bank Governor offered to reopen and
rehabilitated Royal Savings bank
IF
- Royal Savings Bank will drop all its complaints against Central Bank
- Transfer all its shares of stock to Commercial Bank (wholly owned subsidiary
of GSIS)

 Royal Savings Bank & Commercial Bank entered into memorandum of agreement and
renamed it into “COMSAVINGS BANK”
 GSIS transferred all its holdings from Commercial Bank to Boston Bank (XPN:
COMSAVINGS BANK)  GSIS took over the control and management of COMSAVINGS
BANK
 July 19, 1993, After fusion of funds, GSIS effectively owned 99.55% of COMSAVINGS
BANK’s outstanding shares of stock
 July 2001, COMSAVINGS BANK  “GSIS FAMILY BANK”
 March 2004, GSIS FAMILY BANK requested for an opinion from General Counsel of BSP:
GSIS FAMILY BANK could not be categorizes as a governmental bank
Reasons:
1. When it was still Royal Savings Bank, it was organized as a Private stock savings
and loan association organized under the general corporation law. (set up for
private needs) while it is true that PD 2029 simply requires ownership by the
government entity to qualify as a GOCC, it was qualified by the subsequent
promulgation of EO 292 which requires, in addition, that the institution was
organized to serve public needs.
 On Sept. 8, 2010, Pres. Aquino issued EO 7 which placed an indefinite moratorium on
increases in salaries and benefits of employees in GOCC and governmental financial
institutions.
 On June 6, 2011, Benitez, GSIS Family Bank’s President, requested for the opinion as to
whether it may be considered as a GOCC or government bank under RA 10149 from
BSP.
>ask the Governance Commission (implementing agency of RA 10149

 Representatives of Governance Commission clarified : GSIS FAMILY BANK was classified

as Government financial institution under rA 10149
FACTS: