Doctrines Banking (1)

8/18/2019 Doctrines Banking (1)

1/13

Banking cases

1. Sec 83, RA 337 Violation of Director, Ocer, Stockholders and related

interests (DOSR! "a#a. O$ender is a director or ocer of an% &anking instit'tion&. O$ender either directl% or indirectl%

1. Borro#s an% of the deosits or f'nds of s'ch &ank). Beco*es a g'arantor, indorser or s'ret% for loans fro* s'ch &ank to

others3. +e &eco*es in an% *anner an o&ligor for *one% &orro#ed fro* &ank

or loaned &% it. O$ender has erfor*ed an% of s'ch acts #itho't the #ritten aro-al

of the *aorit% of the directors of the &ank, e/cl'ding the o$ender, as

the director concerned

• 0o -s BS2 g'aranteed&orro#ed *one% fro* the &ank #here he is the

resident and 45O.

• Soriano -s eole2 Soriano, &ank ocer of RB of San 6ig'el (B'lacan!

ac'ires &ank f'nds for his ersonal &enet (-iolati-e of DOSR la#!

• R5%noso -s 4A and 0442 444 ac'ired 39: e'it% etc. 'nder DOSR r'les,

directors, ocers and stockholders are rohi&ited fro* &orro#ing fro* their

co*an%.

). 4onser-atorshi2 Sec ); of RA )est of insol-enc% realia&le assets C lia&ilities


2/13


3/13

1.oreign deosits (ntengan case!2 not 19= &'t


4/13

20lasgo#2action for ci-il forfeit're *a% &e searatel% and indeendentl%

rosec'ted and resol-ed20reen J Ross2 4A can iss'e freee order for < *onths #ithin ) hrs (sa*e

#ith irst acic et#ork!

hiliine Banking "a#s oc's

1. 0eneral Banking Act of )999). e# 4entral Bank Act3. >r'th in "ending Act. Secrec% of Bank Deosit

Secrec% of Bank Deosit2 RA 19=

2 An act rohi&iting disclos're of deosits2 5nco'rage the eole to deosit their *one% in &anking instit'tions2 Disco'rage ri-ate hoarding of *one%

2 rotect eole and &anking ocials fro* 'nd'e ress'res fro*

go-ern*ent agencies and ri-ate indi-id'als to *ake disclos'res

Khat is the e/tent of the la#@s co-erageL

2 All deosits of #hate-er nat're2 n-est*ents in &onds iss'ed &% the go-ern*ent

4o-ered transactions (in relation to A6"A!2 transactions in e/cess of =99,999 in

one single transactions

2condential in nat're

2*a% not &e e/a*inedin'ired

5/cet?

a. Kritten er*ission&. *each*entc. Order of co*etent co'rts in cases of &ri&er% or dereliction of d't% of '&lic

ocialsd. A6"A casese. Ine/lained #ealthf. Reort of indeendent a'ditorg. 5/a*ination generalsecial a'thoried &% 6B #reasona&le gro'nd to

&elie-e that a &ank fra'd or serio's irreg'larit% has &een co**itted

Moreign acco'nt ta/ co*liance act (A>4A!2 #ill &e stricter (0lo&al ta/ co*liance

la#!

n order to ens're that the intended 'rose is achie-ed Sec (3! illegal to disclose

(6alicio's reorting!


5/13

2if -iolated, i*rison*ent of not *ore than = %rs or not *ore than )9,999 or &oth

f ISN c'rrenc% in-ol-ed2 Bank Secrec% "a# does not al% (0SS -s 4A!. t sho'ld

&e the foreign c'rrenc% deosit act (4DA! RA o. otal a*o'nt to &e nancedf. inance or chargesg. ercentage that the nance &ears

enalt%2 199 or in a*o'nt e'al to 3/ the nance charged re'ired &% s'ch

creditor in connection #ith s'ch transaction, #hiche-er is greater

Killf'l -iolation2 1999 or *ore

2entit% e/e*ted are go-ern*ent or its agenc%olitical s'&di-ision

e# 4entral Bank Act RA o. 7


6/13

2 5sta&lished the Bangko Sentral ng iliinas as the 4entral 6onetar%

A'thorit% that #ill foc's on *one%, &anking and credit (6B4!2 Shall eno% scal and ad*inistrati-e a'tono*%2 =9B f'll% s'&scri&ed 0o-ern*ent2 19B f'll% aid

BS@s ri*ar% resonsi&ilit%

2rice sta&ilit% (ination, la# of s'l% and de*and!

Deosit2 &ank #ith interest

Deosit s'&stit'te2 high net#orth indi-id'als

Bank2deosit fro* '&lic

E'asi2&ank2 deosit s'&stit'tes

2a%*ent and settle*ent that is ecient

2&ankingsta&le nancial s%ste*

2*onetar% sta&ilit% and trada&ilit% of eso

BSP’s powers exercised by the Monetary Board

Monetary Board comprised of:

2 7 *e*&ers2 residential aointees

2 < %ears ter*2 0o-ernor2 4hair*an2 6e*&er of ca&inet2 Sec of inance2 = *e*&ers fro* ri-ate sector and ser-e f'll ti*e2 All e/cet the 0o-ernor #ill not &e s'&ect for conr*ation of 4o**ission

on Aoint*ent2 6a% &e reaointed &% the resident &'t not *ore than once.

Qualications of Members of MB

2nat'ral2&orn citien of the hil


7/13

2at least 3= %ears

29 %ears for 0o-ernor

2 of good *oral character

2'n'estiona&le integrit%, ro&it% and atriotis*

2#ith recognied co*etence in social J econo*ic disciline (Sec 8!

Qualications are continuing requirement

2if for*er iliino2no *ore

2 estafa cases2 no *ore

Khat are dis'alicationsL

1. Director, ocer, e*lo%ee, cons'ltant, la#%er, agent or stockholder of an%&ank, 'asi2&ank or an% other instit'tions). 6B fro* ri-ate sector shall not hold an% other '&lic oce3. 6'ltilateral &anking on nancial instit'tion

Vacancies2 aoint*ent of ne# *e*&ers co*lete 'ne/ired eriod of the ter* of

*e*&er concerned

0ro'nds for re*o-al of 6B

2 Dis'alied2 h%sicall% or *entall% incaacitated

2 0'ilt% of acts of fra'd2 o longer ossesses 'alications secied in Sec 8

Does BS ha-e o#er to cond'ct e/a*ination of non2&ank entitiesL2 %es, &ank,

B, s'&sidiaries and aliates

2no restraining order or in'nction

ot a&sol'te2 e/cet ar&itrar% and *ade in &ad faith

nade'ate li'idit% of &anks2 BS can conser-atorshi

Sec );2 in a state of contin'ing ina&ilit% or 'n#illingness to *aintain or condition ofli'idit%, BS can aoint a conser-ator2to take charge of assets, lia&ilities and

*anage*ent

4onser-atorshi2 'nder a'thorit% and o#ers of 6B #ho shall o-ersee e-er% asect

of &ank@s oeration and a$airs


8/13

4onser-ator2 erson aointed &% the 6B -ested #ith the e/cl'si-e o#er and

a'thorit% to take o-er and o-ersee the oeration and a$airs of the &ank

2o-err'le or re-oke actions of re-io's *anage*ent of BOD of &ank or EB

6ini*'* 'alications2 co*etent and kno#ledgea&le in &ank oerations and

*anage*ent

6a/i*'* eriod for conser-atorshi2 not e/ceed 1 %r

4onser-ator salar%2 )3 of resident of instit'tion@s salar% in 1) e'al *onthl%

a%*ents

Bank a%s re*'neration2 #ill conser-ator recei-e if ter*inated &efore end of 1 %r

eriod2 deends, if can oerate on its o#n2 okH if notPthen no.

4onser-atorshi2 intended to ro-ide 6B to deter*ine if can still oerate on its o#n,

contin'ance in &'siness #o'ld in-ol-e ro&a&le loss

Recei-ershi2 ro-isional re*ed%

2A'thorit% of &ank, BOD, S6 Q o#n its roerties and e$ect are s'sended

2recei-er

2D4

2in'nction, to restrain &ank ocers fro* inter*edding in or #a%

"i'idation2 settling of all inde&tedness of &ank

Bank assets in hands of recei-er order of garnish*entL

2in c'stodial egis

2e/e*t fro* an% order of garnish*ent, le-%, attach*ent or e/ec'tion.

0ro'nds &% #hich a &ank is for li'idation

2'na&le to a% its lia&ilities as the% &eco*e d'e in ordinar% co'rse of &'siness

2nancial anic in the &anking co**'nit%

2ins'cient realia&le assets as det. B% BS to *eet its lia&ilities

2cannot contin'e in &'siness #itho't in-ol-ing i*ro&a&le losses

2-iolated cease and desist order

4onser-atorshi not recondition &efore recei-ershiL


9/13

Action of 6B shall &e nal and e/ec'tor% and *a% not &e restrained or set aside of

co'rt 'nless2 etition for certiorari e/cess of 'risdiction, gra-e a&'se of discretion

Sanctions? ad*in, ci-il, cri*inal

4i-il2 nes, s'sension, re-ocation

Acts rohi&ited

2ref'sal to *ake reorts or er*it e/a*ination

2#illf'll% *aking of false*isleading state*ent

2#illf'l -iolation

Resignationter*ination2 shall not e/e*t fro* ad*inistrati-e or cri*inal sanction

6B can s'send a &ank director or ocer ending in-estigation2 es, #hene-er

#arranted &% circ'*stances, re-enti-el% s'send ending in-estigation

5/cl'si-e iss'e o#er of c'rrenc%T of BS #ithin territor% of the hil

0eneral Banking Act of )999RA o 87;1

2-ital role of &anks

2s'stained de-elo*ent of nat'ral econo*%

2d'ciar% nat're of &anking that re'ires high standards of integrit% and

erfor*ance

BS e/ercise s'er-isor% o#ers

2o-erseeing to ascertain la#s

2iss'ance of r'les, cond'cts, esta&lish*ent standards of oerations

2cond'ct e/a*inations

2reg'lar in-estigation

2in'iring into sol-enc% and li'idit% of the instit'tion

2ro*t correcti-e action (4A!

Mnot li*ited to &anksH it also alies to EB, tr'st entities and other nancial

instit'tions

irst sec're an a'thorit% fro* BS. n fact S54 shall not register 'nless acco*anied

&% a certicate of a'thorit%


10/13

6B2 det. erson or entit% in BankEB

Basic condition (stock cororation!

1. )9 or *ore). 'nds o&tained '&lic

3. 6ini*'* caital re'ire*ent. ot allo#ed to ac'ire o'r shares=. o, not *ore than < %rs

oreign o#nershi2 9:Horeign Bank "i&eraliation (199:!

4ororate stockholdings2 sa*e fa*il% or gro'

Stockholdings of fa*il% gro' considered as related interest2 ' to fo'rth degree

=21= directors2 ) indeendent, i.e., other than ocer or e*lo%ee of &ank,

s'&sidiar% and aliate

oreigner can &e elected of BOD

it and roer R'leP 6B to rescri&e, ass 'on and re-ie# 'alications and

dis'alications of indi-id'als elected or aointed as &ank directors or ocers and

dis'alif% those fo'nd 'nt

6B *a% dis'alif%, s'send or re*o-e an% &ank director or ocer #ho co**its or

o*its or act #hich render hi* 'nt for the osition after d'e notice to the BOD of

the &ank2 integrit%, e/erience, ed'cation, training and co*etence

6B *a% not interfere to &enets &'t *a% reg'late a%*ent &% &ank to its directors

and ocers of co*ensation, allo#ance, fees

6B *a% interfere in oerations if?

2co*trollershiconser-atorshi

2'nsafe'nso'nd *anner

2'nsatisfactor% nancial osition

o aointi-e or electi-e '&lic ocial

5/cetion? if incident to nancial assistance

Banking da%s and ho'rs2 < hrs a da%H = da%s a #eek &'t can oerate d'ring

#eekends and holida%s for 3 hrs #ith rior aro-alinfor* 6B

Strikes and locko'ts in a &ank2 BS to reort to "a&or Ar&iter and latter #ill ass'*e

'risdiction if not settled in 7 da%ss


11/13

4o**ercial &ank (all e/cet in-est*ent ho'se and o#er to in-est in non2allied

enterrises -s. Ini-ersal &ank (all!!

Restriction of Bank e/os're to DOSRL

2 ot &orro#, g'arantee, endorser or s'ret%

o, it can &e #ritten aro-al of *aorit% of all directors of &ank e/cl'ding directors

concerned

5/cetion to e/cetion Q not re'ired fringe &enet lan

'rose of the r'le2 'on ter*s not less fa-ora&le to the &ank than those o$ered to

others

Sanction2 -acant

2enal ro-isions of 4BA

rohi&ition to act as ins'rer (Sec =!

rohi&ited transactions (Sec ==.1!

4ond'cting &'siness in an 'nsafe or 'nso'nd *anner

Sec 392 'nder recei-ershi 'nsafe

4essation

1. Vol'ntar%in-ol'ntar% li'idation

). Recei-ershi

Ref'ses to t'rn o-er to recei-ers

>a*ers #ith &ank records

Aroriates2recei-ers of er*its or cases, a%s etc

RA ;1


12/13

6one% la'ndering

2 >ransacting2 >ransferring, disosing of 2 4oncealing or disg'ising2 Atte*t or co*rising to co**it 6"

2 Aiding, a&etting2 acilitating2 ailed to reort to A6"4

Other rohi&ited Acts

1. ail're to kee records). 6alicio's reorting3. Breach of condentialit%

Safe +ar&or ro-ision2 no ad*in, ci-il or cri* case shall lie against an% erson forha-ing *ade a co-ered or s'sicio's reort

A6"42 BS, 4, and S542 re'ire and recei-e 4>R and S>R fro* co-ered ersons

DOG2 ci-il forfeit're

A'thorit% to freee order2 4A order e$ecti-e i**ediatel%H shall not e/ceed <

*onths

A'thorit% to in'ire2 &ank in'ir%

4A #ithin ) ho'rs

4i-il forfeit're2 initiated &% A6"4 thro'gh OS0

e'al -al'e rincileT

4o-ered ersons2 &anks, non2&anks, EB, s'er-ised or reg'lated &% BS, S54, 4,

e#elr% dealers, co*an% ser-ice ro-iders, la#%ers, acco'ntants, doctors,

*anages client@s *one%

O&ligation of 4

1. 4'sto*er identication). Record keeing = %ears3. Reorting of 4>R and S>R

4>R2 in e/cess of =99,999 in 1 &anking da%

S>R2 regardless of a*o'nt, no 'nderl%ing legal, not roerl% identied

6alicio's reorting2 *alice &ad faith


13/13

6" indeendentl% of rosec'tion of the 'nla#f'l acti-it%

A6"A ro-ided state #ith 3 e/traordinar% re*edies to re-ent "

reee order 'dicial rerogati-e

Breach of condentialit%

Doctrines Banking (1)

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