2012 Syb Sp Class Banks

7/21/2019 2012 Syb Sp Class Banks

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Banks



Recap of Previous LessonNature of the Banking Business

Debtor-Creditor Relationship

Fiduciary Duty

Not a trust agreement Indispensable Institution

Impressed with public interest

Not expected to be infallible



Recap of Previous LessonLiability of Banks for Acts of

Officers and Employees Primary Liability

ighest Degree of Responsibility

Respondeat !uperior

" Negligence of #anager

" Negligence of $%cers

" Negligence of &ellers" Right to reco'er from employees

" Liability for Damages



The Ne !entral Bank

Act Purpose

Primary $b(ecti'e

Responsibilities and Functions $rgani)ational !tructure



Purpose

Constitutional *asis+ !ection ,. /rt01II of 2345 Constitution

Central Monetary Authority that shallfunction and operate as anindependent and accountable bodycorporate in the discharge of its

mandated responsibilities concerningmoney, banking and credit.



Primary Ob"ective

#aintain Price !tability conduci'e toa balanced and sustainable economy0



Responsibility of BSP(Section 3, NCBA)

20 Pro'ide policy directions in the areas of money.ban6ing and credit

,0 !uper'ision o'er operation of ban6s

70 8xercise regulatory powers o'er the operation of

9nance companies and non-ban6 9nancialinstitutions performing :uasi-ban6ing functions

;0 #aintain price stability conduci'e to a balancedand sustainable growth of economy0

<0 Promote and maintain monetary stability andthe con'ertibility of the peso0



$rgani)ational !tructure of *!P



Organi#ational $tructure &he Monetary Board exercises the powers and functions of the *!P.

such as the conduct of monetary policy and super'ision of the9nancial system0 Its chairman is the *!P =o'ernor. with 9'e full-timemembers from the pri'ate sector and one member from the Cabinet0

&he Governor is the chief executi'e o%cer of the *!P and is re:uiredto direct and super'ise the operations and internal administration ofthe *!P0 / deputy go'ernor heads each of the *!P>s operating sector

as follows+

Monetary Stability Sector ta6es charge of the formulation andimplementation of the *!P?s monetary policy. including ser'ing theban6ing needs of all ban6s through accepting deposits. ser'icingwithdrawals and extending credit through the rediscounting facility0

!uper'ision and 8xamination !ector enforces and monitorscompliance to ban6ing laws to promote a sound and healthy ban6ingsystem0

Resource #anagement !ector ser'es the human. 9nancial andphysical resource needs of the *!P



Organi#ational $tructure of

the B$P



The authority of the B$P

/0 !uper'isory Powers

*0 Policy Directions@ ratios. ceilings andlimitations



!uper'isory Power



$upervisory Poers

SECTION 4. Supervisory Powers0 A &he operations and acti'ities of ban6sshall be sub(ect to super'ision of the *ang6o !entral0 B!uper'isionB shall include thefollowing+

;020 &he issuance o rules o conduct or the establishment ofstandards of operation for uniform application to all institutions or functions co'ered.ta6ing into consideration the distincti'e character of the operations of institutions

and the substanti'e similarities of speci9c functions to which such rules. modes orstandards are to be applied@

;0,0 &he conduct o e!a"ination to determine compliance with laws andregulations if the circumstances so warrant as determined by the #onetary *oard@

;070 Overseein# to ascertain that laws and regulations are complied with@

;0;0 $e#ular investi#ation which shall not be oftener than once a year from thelast date of examination to determine whether an institution is conducting itsbusiness on a safe or sound basis+ Pro'ided. &hat the de9cienciesirregularities foundby or disco'ered by an audit shall be immediately addressed@

;0<0 In%uirin# into t&e solvency and li:uidity of the institution@ or

;00 Enorcin# pro"pt corrective action0



$upervisory Poers

&he *ang6o !entral shall also ha'e supervisionover t&e operations o and e!ercise re#ulatorypowers over %uasi'ban(s) trust entities andot&er *nancial institutions w&ic& underspecial laws are sub+ect to Ban#(o Sentralsupervision.

For the purposes of this /ct. ,%uasi'ban(s, shallrefer to entities engaged in the borrowing of fundsthrough the issuance. endorsement or assignmentwith recourse or acceptance of deposit substitutes

as de9ned in !ection 3< of Republic /ct No0 5<7Ehereafter the BNew Central *an6 /ctB for purposesof relending or purchasing of recei'ables and otherobligations0



%eposit $ubstitutes

!ection 3<. New Central *an6 /ct

Alternative form of obtaining funds fromthe public, other than deposits, throughthe issuance, endorsement, oracceptance of debt instruments for theborrower’s own account, for the

purpose of relending or purchasing ofreceivables and other obligations.



%eposit $ubstitutes

&hese instruments may include. butneed not be limited to+

20*an6er?s acceptances,0Promissory Notes

70Participations

;0Certi9cates of /ssignments<0!imilar instruments with recourse

and repurchase agreements



Policy %irections& Ratios'

!eilings and Limitations

!8C&I$N <0 Policy Direction@ Ratios.

Ceilings and Limitations0 A &he*ang6o !entral shall pro'ide policydirection in t&e areas o "oney)ban(in# and credit.



/uthority to set ratios. ceilings andlimitationsG



Ratios' !eilings and

Limitations T&e Monetary Board "ay prescribe ratios)ceilin#s) li"itations) or ot&er or"s o re#ulationon t&e di-erent types o accounts and practiceso ban(s and %uasi'ban(s w&ic& s&all) to t&e

e!tent easible) conor" to internationallyaccepted standards) includin# t&ose o t&e Ban(or International Settle"ents BIS/. T&e MonetaryBoard "ay e!e"pt particular cate#ories otransactions ro" suc& ratios) ceilin#s and

li"itations) but not li"ited to e!ceptional casesor to enable a ban( or %uasi'ban( underre&abilitation or durin# a "er#er or consolidationto continue in business wit& saety to its

creditors) depositors and t&e #eneral public.



!urrency

NC*/. !8C&I$N ;30 De9nition ofCurrency0 A &he word BcurrencyB ishereby de9ned. for purposes of this/ct. as meaning all Philippine notesand coins issued or circulating inaccordance with the pro'isions of

this /ct0



!urrency

NC*/. !8C&I$N ;40 &he Peso0 A &he unit of monetary 'alue in thePhilippines is the Bpeso.B which is

represented by the sign BP0B

&he peso is di'ided into one hundred

E2 e:ual parts called Bcenta'os.Bwhich are represented by the signBc0B



E!clusive Power to issueCurrency



&he *!P has the exclusi'e power andauthority to issue the national currency0*!P?s notes and coins are issuedagainst. and in amounts not exceeding.

the assets of the *!P0 /ll notes andcoins issued by the *!P are fullyguaranteed by the go'ernment and areconsidered legal tender for all pri'ateand public debts0



0e#al Basis o t&e power to issuet&e national currency1



!urrency

NCB2) SECTION 3. E!clusive Issue Power0 A T&e Ban#(o Sentrals&all &ave t&e sole power and aut&ority to issue currency) wit&in t&eterritory o t&e P&ilippines. No ot&er person or entity) public orprivate) "ay put into circulation notes) coins or any ot&er ob+ect ordocu"ent w&ic& in t&e opinion o t&e Monetary Board) "i#&tcirculate as currency) nor reproduce or i"itate t&e acsi"iles oBan#(o Sentral notes wit&out prior aut&ority ro" t&e Ban#(oSentral.

&he #onetary *oard may issue such regulations as it may deem ad'isable inorder to pre'ent the circulation of foreign currency or of currency substitutesas well as to pre'ent the reproduction of facsimiles of *ang6o !entral notes0

&he *ang6o !entral shall ha'e the authority to in'estigate. ma6e arrests.conduct searches and sei)ures in accordance with law. for the purpose ofmaintaining the integrity of the currency0

Hiolation of this pro'ision or of any regulation issued by the *ang6o !entralpursuant thereto shall constitute an oense punishable by imprisonment ofnot less than 9'e E< years but not more than ten E2 years0 In case theRe'ised Penal Code pro'ides for a greater penalty. then that penalty shall beimposed



Jho bears liability for ban6s and notes

issuedG



!urrency

!8C&I$N <20 Liability for Notes and Coins0 ANotes and coins issued by the *ang6o !entrals&all be liabilities o t&e Ban#(o Sentraland "ay be issued only a#ainst) and in

a"ounts not e!ceedin#) t&e assets o t&eBan#(o Sentral0 !aid notes and coins shallbe a 9rst and paramount lien on all assets ofthe *ang6o !entral0

&he *ang6o !entral>s holdings of its own notesand coins shall not be considered as part of itscurrency issue and. accordingly. shall not formpart of the assets or liabilities of the *ang6o!entral0



Jho guarantees legal tenderG



Legal Tender Poer

!8C&I$N <,0 Legal &ender Power0 A /ll notesand coins issued by the *ang6o !entral shallbe fully guaranteed by the =o'ernment of theRepublic of the Philippines and shall be legal

tender in the Philippines for all debts. bothpublic and pri'ate+ Pro'ided. howe'er. &hat.unless otherwise 9xed by the #onetary *oard.coins shall be legal tender in amounts notexceeding Fifty pesos EP<0 fordenominations of &wenty-9'e centa'os andabo'e. and in amounts not exceeding &wentypesos EP,0 for denominations of &encenta'os or less0



Te!t5 BRepubli6a ng PilipinasB.B!anlibong PisoB. B/ng salaping itoay bayarin ng *ang6o !entral atpananagutan ng Republi6a ngPilipinas



Chec6s as legal tenderG



!ection 0 Legal Character0 K C&ec(srepresentin# de"and deposits do not&ave le#al tender power and t&eir

acceptance in t&e pay"ent o debts)bot& public and private) is at t&eoption o t&e creditor+ Pro'ided.howe'er. &hat a chec6 which has been

cleared and credited to the account of thecreditor shall be e:ui'alent to a deli'ey tothe creditor of cash in an amount e:ual tothe amount credited to his account0



!urrency

!8C&I$N <70 Characteristics of the Currency0 A &he#onetary *oard. with the appro'al of the President of thePhilippines. shall prescribe the denominations. dimensions.designs. inscriptions and other characteristics of notes issued

by the *ang6o !entral+ Pro'ided. howe'er. &hat said notesshall state that they are liabilities of the *ang6o !entral andare fully guaranteed by the =o'ernment of the Republic of thePhilippines0 !aid notes shall bear the signatures. in facsimile.of the President of the Philippines and of the =o'ernor of the*ang6o !entral0

!imilarly. the #onetary *oard. with the appro'al of thePresident of the Philippines. shall prescribe the weight.9neness. designs. denominations and other characteristics ofthe coins issued by the *ang6o !entral0 In the minting ofcoins. the #onetary *oard shall gi'e full consideration to thea'ailability of suitable metals and to their relati'e prices andcost of minting0



LA($ ON !urrency

20 2rticle 678) $evised Penal Code $PC/0 #a6ing and importing and uttering

Eissuing or circulating false coins0

,0 2rticle 677) $evised Penal Code $PC/. Forging treasury or ban6 notes or otherdocuments payable to bearer@ importing.and uttering Eissuing or circulating such falseor forged

notes and documents0

702rticle 679) $evised Penal Code $PC/.

Illegal possession and use of falsetreasury or ban6 notes and other instruments of credit0

;0 2rticle 6:7) $evised Penal Code $PC/0 #anufacturing and possession ofinstruments or implements for falsi9cation0

<0 P; <4: = Defacement. mutilation. tearing. burning or destruction of Central *an6E*!P notes and coins0

0 C&apter II) Circular 76) Series o 6>>3. Reproduction andor use of facsimiles oflegal tender Philippine currency notes0

50 C&apter III) Circular 76) Series o 6>>3. Reproduction andor use of facsimiles oflegal tender Philippine currency coins0



#onetary !tabili)ation



Domestic

International



=uiding Principle on #onetary

!tabili)ation G



MONETARY STABILIATION

!8C&I$N 20 =uiding Principle0 A &he #onetary *oard shall endea'orto control any expansion orcontraction in monetary aggregateswhich is pre(udicial to the attainmentor maintenance of price stability0



#onetary /ggregates K #oney supply



Jhy is it necessary to control money

supplyG



$elation between "oney and prices is&istorically associated wit& t&e%uantity t&eory o "oney. T&ere is stron#e"pirical evidence o a direct relationbetween lon#'ter" price in?ation and"oney'supply #rowt&) at least or rapidincreases in t&e a"ount o "oney in t&eecono"y.

@i"babwe 'rapid increases in its "oneysupply also saw rapid increases in prices &yperin?ation/.

http://en.wikipedia.org/wiki/Quantity_theory_of_money

http://en.wikipedia.org/wiki/Empirical

http://en.wikipedia.org/wiki/Inflation

http://en.wikipedia.org/wiki/Hyperinflation

http://en.wikipedia.org/wiki/Hyperinflation

http://en.wikipedia.org/wiki/Inflation

http://en.wikipedia.org/wiki/Empirical

http://en.wikipedia.org/wiki/Quantity_theory_of_money



The policy may mean to

things)20 Increasing money supply duringrecession to stimulate spending@ or

,0 Restricting it during ination tocurtail spending0



In?ation Tar#etin#5 T&e BSPAs

2pproac& to Monetary Policy



Reser'e Re:uirements



Reserve Re*uirements

&o control the 'olume of money created bythe credit operations of the ban6ingsystem. all ban6s operating in thePhilippines shall be re:uired to maintain

reser'es against deposit liabilities0

Jhere a certain percentage of the deposit

is set aside and cannot be lent out0



+nternational ,onetary$tabili#ation

SECTION 74. International Monetary Stabiliation0A &he *ang6o !entral shall exercise its powers under this /ctto preser'e the international 'alue of the peso and tomaintain its con'ertibility into other freely con'ertiblecurrencies primarily for. although not necessarily limited to.

current payments for foreign trade and in'isibles0

SECTION 73. International $eserves. A In order tomaintain the international stability and con'ertibility of thePhilippine peso. the *ang6o !entral shall maintaininternational reser'es ade:uate to meet any foreseeable netdemands on the *ang6o !entral for foreign currencies0

0



Recap of Past Lesson

&he authority of the *!P in thesuper'ision of ban6s ESection 4) $29:>6 = GB0 o </

Currency. #onetary !tabili)ationFunctions of the *!P EC&apter II)sections 49'7:) $2 :738 = NCB2/



Ob"ective in Past Lesson

&o be able to understand the powersand authority of the *!P in thesuper'ision of ban6s and its role in

currency. monetary stabili)ationfunction0

&o understand better the Philippine

currency0



Lesson for Today

Classi9cation of *an6s



Dierence between Corporation and*an6ing Corporation



!iffe"ence bet#een $n O"%in$"yCo"po"$tion $n% $ B$n&in' Co"po"$tionPoint Ordinary Corporation Ban(in# Corporation

Classi9cation #ay be stoc6 or non-stoc6

#ust generally be astoc6

!toc6s Issued #ay issue par 'alue orno par 'alue

Par 'alue stoc6s only

Registration #ay be registered

without any certi9cate ofauthority issued byanother go't agency

Re:uires certi9cate of

authority from #onetary*oard

/c:uisition of !hares #ay purchaseac:uire itsown shares for alegitimate corporate

purpose. pro'ided it hasunrestricted retainedearnings

#ay notpurchasea:cuire itsshares or accept them

as security for a loan08xcept when authori)edby the #onetary *oard

Number of Directors <-2< <-2<0 In case of mergeror consolidation. numberof directors shall notexceed ,2

Declaration of Di'idends #ay declare Conditional. sub(ect to



!lassification of Banks

Rele'ant pro'isions of the *an6ing Law ER/4532

20 !ection 70, EClassi9cation of *an6s

,0 !ection ; E!uper'isory Powers of *!P70 !ections ,7-,4 E$perations of Mni'ersal*an6s

;0 !ections ,3-7, E$perations of Commercial

*an6s<0 !ection 52 E$ther *an6ing Laws



!lassification of Banks

a0 Mni'ersal ban6s EM*s@

b0 Commercial ban6s EO*s@

c0 &hrift ban6s E&*s. as de9ned in Republic /ctER0/0 No0 53. which shall be composed of+ Ei

!a'ings and mortgage ban6s. Eii !toc6 sa'ings andloan associations. and Eiii Pri'ate de'elopmentban6s@

d0 Rural ban6s ER*s. as de9ned in R0 /0 No0 57<7@

e0 Cooperati'e ban6s ECoop *an6s. as de9ned in R0/0 No0 374@ and

f0 Islamic ban6s EI*s. as de9ned in R0 /0 No0 4;40



Nbe" of B$n&s in RP(BSP)

Type o Ban( Nu"ber

Mni'ersal *an6 74

Commercial *an6 23

&hrift *an6s 5;

Rural *an6s ,;Cooperati'e *an6s 2,



Powers and /uthority of dierentclass of ban6s



!lassification of BanksType o Ban( Power 2ut&ority

Mni'ersal *an6 / M* shall ha'e theauthority to exercise. inaddition to the powers andser'ices authori)ed for aCommercial *an6 and thosepro'ided by other laws. thefollowing+

E2 the powers of anin'estment house aspro'ided under existinglaws@E, the power to in'est innon-allied enterprises@-E7 the power to own up to

one hundred percentE2 of the e:uity in a

&*. an R*. a 9nancial alliedenterprise. or a non-9nancial allied enterprise@andE; in case of publicly-listedM*s. the power to own up toone hundred percent

M* may perform thefunctions of an in'estmenthouse either directly orindirectly through asubsidiary in'estmenthouse@ in either case. theunderwriting of e:uity

securities and securitiesdealing shall be sub(ect topertinent laws andregulations of the !ecuritiesand 8xchange CommissionE!8C+ Pro'ided. &hat if thein'estment house functionsare performed directly by

the M*. such functions shallbe underta6en by aseparate and distinctdepartment or other similarunit in the M* but it cannotperform such functions bothdirectly and indirectlythrough a subsidiary



!lassification of BanksType o Ban( Power 2ut&ority

Commercial *an6 In addition to the general powersincident to corporations andthose pro'ided in other laws. aO* shall ha'e the authority toexercise all such powers as maybe necessary to carry on thebusiness of commercial ban6ing.such as accepting drafts andissuing letters of credit@discounting and negotiatingpromissory notes. drafts. bills ofexchange. and other e'idencesof debt@ accepting or creatingdemand deposits@ recei'ingother types of deposits anddeposit substitutes@ buying andselling foreign exchange andgold or sil'er bullion@ ac:uiringmar6etable bonds and other debtsecurities@ and extending credit.sub(ect to such rules as the#onetary *oard maypromulgate0 &hese rules mayinclude the determination ofbonds and other debt securitieseligible for in'estment. thematurities and aggregateamount of such in'estment0

E20 In'est in the e:uities ofallied enterprises as may bedetermined by the #onetary*oard@E, purchase. hold and con'eyreal estate as speci9ed under!ections <2 and <, of R0/0 No04532@E7 recei'e in custody funds.documents and 'aluableob(ects@E; act as 9nancial agent andbuy and sell. by order of and forthe account of their customers.shares. e'idences ofindebtedness and all types ofsecurities@E< ma6e collections andpayments for the account ofothers and perform such otherser'ices for their customers asare not incompatible withban6ing business@E upon prior appro'al of the#onetary *oard. act asmanaging agent. ad'iser.consultant or administrator ofin'estmentmana ementad'isor -



Type o Ban( Power 2ut&ority

&hrift *an6 E2 grant loans. whether securedor unsecured@E, in'est in readily mar6etablebonds and other debt securities.commercial papers and accountsrecei'able. drafts. bills ofexchange. acceptances or notesarising out of commercialtransactions@E7 issue domestic letters ofcredit@E; extend credit facilities topri'ate and go'ernmentemployees@E< extend credit against thesecurity of (ewelry. preciousstones and articles of similarnature. sub(ect to such rules andregulations as the #onetary*oard may prescribe@E accept sa'ings and timedeposits@E5 rediscount paper with theLand *an6 of the Philippines.EL*P. De'elopment *an6 of thePhilippines ED*P. and othergo'ernment-owned or controlledcorporations@

E2 open current or chec6ingaccounts@E, engage in trust. :uasi-ban6ing functions and moneymar6et operations@E7 act as collection agent forgo'ernment entities. includingbut not limited to. the *ureau ofInternal Re'enue E*IR. !ocial!ecurity !ystem E!!! and the*ureau of Customs E*$C@E; act as o%cial depository ofnational agencies and ofmunicipal. city or pro'incialfunds in the municipality. city orpro'ince where the &* islocated@E< issue mortgage and chattelmortgage certi9cates. buy andsell them for its own account orfor the account of others. oraccept and recei'e them inpayment or as amorti)ation of itsloan@ andE



T&rit Ban( Power 2ut&ority

E4 accept foreign currencydeposits as pro'ided under R0/0No0 ;,. as amended@E3 act as correspondent for

other 9nancial institutions@E2 purchase. hold and con'eyreal estate as speci9ed under!ections <2 and <, of R0/0 No04532@ andE22 oer other ban6ing ser'icesas pro'ided in !ection <7 of R0/0No0 45320

to in'est in the e:uity ofallied underta6ings0d0 R*s0 In addition to thepowers pro'ided in other laws.

an R* may perform any or all ofthe following ser'ices+E2 extend loans and ad'ancesprimarily for the purpose ofmeeting the normal credit needsof farmers. 9shermen or farmfamilies as well as cooperati'es.merchants. pri'ate and publicemployees@

E, accept sa'ings and timedeposits@E7 act as correspondent ofother 9nancial institutions@E; rediscount paper with theL*P. D*P or any other ban6.including its branches andagencies0 !aid ban6s shallspecify the nature of paper

deemed acceptable forrediscount. as well as therediscount rate to be charged byany of these ban6s@E< /ct as collection agent@ andE $er other ban6ing ser'icesas pro'ided in !ection <7 of R0/0No0 45320



Power and /uthority of a Rural *an6



Rural Banks

Rationale Esection 2. R/ 57<7

Principal purpose



Rural Banks

E2 accept current or chec6ing accounts+Pro'ided. &hat such R* has net assets of atleast P< million@

E, accept sa'ings and time deposits@

E7 act as trustee o'er estates or propertiesof farmers and merchants@

E; act as o%cial depository of municipal.city or pro'incial funds in the municipality.city or pro'ince where it is located@

E< sell domestic drafts@ and

E in'est in allied underta6ings0



Power and /uthority of Cooperati'e*an6s



!ooperative Banks

/ Coop *an6 shall be organi)edprimarily to pro'ide 9nancial andcredit ser'ices to cooperati'es and

may perform any or all of theser'ices oered by R*s0



Power and /uthority of Islamic *an6



+slamic Bank

/l- /manah Islamic In'estment *an6

Primary purpose is to promote andaccelerate the socio-economicde'elopment of /R## based on theislamic concept of ban6ing0

!ub(ect to !haria Law0 No interestin'ol'ed0



-niversal Banks

Licensed by the *!P to do bothcommercial and in'estment ban6ing

/uthority to exercise

20 Powers authori)ed for acommercial ban6

,0 Powers of an in'estment house as

pro'ided in existing laws

70 Power to in'est in non-alliedenterprises

%ifference beteen -B and



%ifference beteen -B and.B

B DB

as additional power other than thoseauthori)ed for commercial ban6s.including the power of an in'estmenthouse and the power to in'est in non-allied enterprises

No such power0 $nly such powers asare necessary to carry on the businessof ban6ing0

#ay in'est in e:uities of allied.whether 9nancial or non-9nancial andnon-allied enterprises0

#ay only in'est in e:uities of alliedenterprises. whether 9nancial or non-9nancial

ighest capitali)ation re:uirementEP;03 *

!econd highest minimum capitalre:uirement EP,0; *



/llied and Non- /llied 8nterprises



Allie% $n% Non*Allie%Ente"p"ises &hose entities that enhance the business of

ban6ing

/llied 8nterprises

Q Financial ELeasing companies. *an6s.In'estment ouses. Financing Companies.Credit Card Companies. Financial Institutionscatering to small and medium scale industriesincluding 'enture capital corporation. securities

dealership.Foreign exchangedealershipbro6erage. insurance companies.holding company



Allied Non/0inancial

/cti'ities that do not in'ol'e money matters such as+

20 Jarehouse companies

,0 !torage companies

70 !afety Deposit Companies

;0 #anagement #utual Funds

<0 #anagement corporations0 Computer ser'ices

50 Insurance agenciesbro6erages

40 ome *uilding and ome De'elopment

30 Drying and #illing Companies

20 !er'ice *ureaus organi)ed to perform for and in behalf of

ban6s220 Philippine Clearing ouse Corporation. Philippine Central

Depositary Inc0.

2,0 !uch other acti'ities to be determined by the *!P



Non/Allied Enterprises

Physically producti'e acti'itiesEagriculture. mining. :uarrying.manufacturing. etc0

Industrial Par6s andor Industrial8states

Financial and Commercial Complex

Pro(ects !uch other categories as the

#onetary *oard may determine



#inimum &otal In'estmentRe:uirement for /llied and Non-/llied8nterprises

Mini Tot$l In+estent fo" Allie%



Mini Tot$l In+estent fo" Allie%$n% Non*Allie% Ente"p"ises (Sections-*3, .BL)Type o Invest"ent B DB

/llied 8nterprises < of net worth 7< of net worth

Non-/llied < of net worth -N/-

In any one 8nterprise ,< of net worth ,< of net worth E/lliedonly

Financial /llied 2 of e:uity0 Including

2 'oting stoc6 ofone other M*O*

2 e:uity of a thrift or

rural ban6

Non-Financial /llied 2 of e:uity 2 of e:uity

!ingle Non-/llied !hall not exceed 7< oftotal e:uity in thatenterprise nor shall it

exceed 7< of 'otingstoc6

-N/-

uasi *an6ing ; ;



De9nition of Net Jorth



Net (orth

!ection ,;0 =*L

Net Jorth shall mean the total of theunimpaired paid in capital includingpaid in surplus. retained earnings.undi'ided net pro9t. net of 'aluation

reser'es and other ad(ustments asmay be re:uired by *!P0

l l



E1amples of -niversal

Banks in RP/llied *an6

*anco De $ro

*an6 of Philippine IslandsPhilippine National *an6

RC*C

MCP*!ecurity *an6

l f i l



E1amples of !ommercial

Banks /sia Mnited *an6

*D$ Pri'ate *an6

Philippine *an6 of Communications

l f l k



E1amples of Rural Banks

Rural *an6 of Oalibo

Rural *an6 of *aguio

Rural *an6 of #aragondon #aranao Rural *an6

E l f Th if B k



E1amples of Thrift Banks

Philippine Postal !a'ings *an6

8:uicom !a'ings *an6

Robinsons !a'ings *an6 RC*C !a'ings *an6

! ti B k



!ooperative Banks

De9nition E!ection 2. R/ 374

Functions

Oth B k



Other Banks

Islamic *an6 ERepublic /ct 4;4

$shore *an6s EPD 27;

=o'ernment $wned *an6s

O"'$ni/$tion M$n$'eent $n%



O"'$ni/$tion, M$n$'eent $n%A%inist"$tion of B$n&s, 0$si*B$n&s $n%T"st Entities

$rgani)ation of *an6s

- /uthority to engage in *an6ing

- $rgani)ation

- !toc6holdings

- *oard of Directors

- Fit and Proper Rule

- Directors of merged or consolidated ban6s

- Compensation and other bene9ts of directors

and o%cers- $wnership !tructure

2012 Syb Sp Class Banks

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Transcript of 2012 Syb Sp Class Banks