Banking Laws

bank

licensed to accept checking & savings deposits & make loans

mesopotamia

earliest proper banks

evidence: lending acts sa temples

medieval

• merchant-oriented; crop loans and Silk Road expeditions

• contributed to the birth of bankruptcy in Italy

goldsmiths of london

• marked a turning point

• provided services and issued banknotes

Bank of England

introduced checks and overdrafts during the industrial revolution

17th-19th century

time period where the goldsmiths of london marked a turning point

20th century

• time period where there was a paradigm shift in banking

• where retail banking, ATMs, and SWIFT payments gained prominence

barter

banking in the PH during the pre-spanish colonization

spanish colonizers

brought european banking practices (formal lending and trade finance) to the PH

el banco espanol filipino de isabel ii

• aka bank of the philippine islands (BPI)

• first bank in SEA

• August 1, 1851

August 1, 1851

birthdate of Philippine banking

Philippine National Bank 1916

a bank that symbolized the move towards financial independence

Central Bank of the Philippines 1949

responsible for monetary policy and currency issuance

Manuel Roxas

President after WWII

Philippine National Bank 1916

key bank during the american colonial period

mid 20th century

• era that saw significant developments in the banking industry trends with the establishment of the Central Bank of the Philippines

• era witnessed the emergence of private commercial banks, contributing to the diversification and expansion of the banking sector

Bangko Sentral ng Pilipinas

• is the central bank of the Republic of the Philippines

• established on July 3 1993 (pursuant tot he provisions of the 1987 PH Consti AND the New Central Bank Act of 1993)

July 3, 1993

when was the BSP established

January 3, 1949

when was the Central Bank of the Philippines established?

Bangko Sentral ng Pilipinas

enjoys fiscal and administrative autonomy from the National Government in the pursuit of its mandated responsibilities

Central Bank of Guatemala

this charter was choses as the model of the proposed central bank charter (1946)

august 1947

when a central bank council was formed to review the commission’s report and prepare the necessary legislation for implementation

Manuel Roxas

who is the President who submitted a bill to congress about establishing the central bank of the philippines

february 1948

when did manuel roxas submit a bill to congress about establishing the central bank of the philippines

June 15, 1948

when was RA No. 265 (The Central Bank Act) signed into law?

Elpidio Quirino

who signed RA 265 (The Central Bank Act) into law?

january 3, 1949

when the Central Bank of the Philippines was inaugurated and formally opened

Miguel Cuaderno Sr.

the first governor of the central bank of the philippines

november 1972

when RA 265 was amended by PD 72 to make the CBP more responsive to changing economic conditions

— the auhority of CBP was expanded to include the regulation of the entire financial system

january 1981

• time of issuace of PD 1771 (where further amendements were made to improve the financial system)

• increase in capitalization of CBP from 10M to 10B

1986

• where executive order no. 16 amended the monetary board membership to promote greater harmony and coordination of government monetary and fiscal policies

july 3, 1993

when RA 7653 was passed na nagestablish ng BSP, replacing CBP as the country’s central monetary authority

general banking law of 2000 (RA 8791)

what banking law now governs functional and operational matters of a bank?

RA 11211

• law that amended RA 7653 (The New Central Bank Act)

• provided for additional BSP capitalization, tax exemptions, and enhanced credit operations

RA 11211

• law that granted the bsp expanded authority over data collection, negotiable certs, and financial oversight of entities and systems

• Price stability

• financial stability

• efficient pasyments and settlements system

mandate of the bsp (3)

price stability

mandate of the bsp through the conduct of monetary policy

financial stability

mandate of the bsp; by managing systemic risks and promoting a secure and reliable banking system para maensure and safe operation ng banks and other BSP supervised financial insti (BSFIs)

efficient payments and settlements system

mandate of the bsp; by providing channels through which funds are transferred among banks and other insti

universal banks

• bank authorized to function like an investment house

commercial banks

• bank that serves indivs and orgs. addresses regular financial needs like deposits and withdrawals, checking and savings accs, loan services, certs of deposit

• walang inv function

thrift banks

• bank that focuses on accumulating and investing depositors’ savings

• main customers are businesses engaged in agri, services, industry, and housing

rural banks

• bank that provides basic financial services to residents

• goal: promote and expand local economy

• offers help to farmers. support diff stages of prod

cooperative banks

• similar to rural banks pero difference is in ownership

• organized or owned by coops or federation of coops

• also assist farmers through fin services

islamic banks

• follow the principles of the sharia or islamic law

• operations dont involve interest or riba

• expected to give muslim filos greater access to banking products and services

digital banks

• entity which offers financial products and services that are processed end-to-end through a digital platform and/or electronic channels with no physical branch

1B PHP

min capitalization of a digital bank

5-15 incorporators

a bank may be organized with _______ incorporators

25-25 rule

wherein at least 25% of the total authorized cap stock shall be subscribed by the subscribers of the proposed bank and at least 25% of such subscrip shall be paid up

(obsolete na EXCEPT for banks)

higher than that of a good father of a family

the fiduciary nature of banking requires banks to assume a degree of diligence ____________

banks

are corporations imbued with public interest

banks

perform the function of safekeeping money and valuables and extending loans credit, and pyment services in the form of checking accounts, money orders, cashier checks, and issuance of debit and credit cards

the monetary board

exercises the powers and functions of the BSP like the conduct of monetary policy and the supervision of the financial system

bsp governor

• chairman of the monetary board, may kasamang 5 full-time members from the private sector tapos 1 member from the Cabinet (total 7)

• ceo of the BSP

• required to direct and supervise the operations and internal administration of the bsp

eli remolona jr

current chairman of the monetary board

• frederick go

• benjamin diokno

• romeo bernardo

• rosalia de leon

• walter wassmer

• jose querubin

the monetary board (6)