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    Sec. 26 of NCBA-lending Bank Shall Require The Philippines

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    Jv Fermin
    The document summarizes the supervisory and regulatory powers of the Bangko Sentral ng Pilipinas (BSP) over banks in the Philippines. It outlines BSP's powers to conduct examinations of banks, oversee compliance with laws and regulations, investigate banks, and inquire into banks' solvency and liquidity. It also describes requirements for loans made by banks to their directors, officers, and shareholders. The document notes that the courts cannot intervene in receivership or closure actions taken by BSP against financially distressed banks.

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    Sec. 26 of NCBA-lending Bank Shall Require The Philippines

    Uploaded by

    Jv Fermin
    45 views2 pages
    The document summarizes the supervisory and regulatory powers of the Bangko Sentral ng Pilipinas (BSP) over banks in the Philippines. It outlines BSP's powers to conduct examinations of banks, oversee compliance with laws and regulations, investigate banks, and inquire into banks' solvency and liquidity. It also describes requirements for loans made by banks to their directors, officers, and shareholders. The document notes that the courts cannot intervene in receivership or closure actions taken by BSP against financially distressed banks.

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    BSP Reviewer

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    BSP

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    The document summarizes the supervisory and regulatory powers of the Bangko Sentral ng Pilipinas (BSP) over banks in the Philippines. It outlines BSP's powers to conduct examinations of banks, oversee compliance with laws and regulations, investigate banks, and inquire into banks' solvency and liquidity. It also describes requirements for loans made by banks to their directors, officers, and shareholders. The document notes that the courts cannot intervene in receivership or closure actions taken by BSP against financially distressed banks.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    45 views2 pages

    Sec. 26 of NCBA-lending Bank Shall Require The Philippines

    Uploaded by

    Jv Fermin
    The document summarizes the supervisory and regulatory powers of the Bangko Sentral ng Pilipinas (BSP) over banks in the Philippines. It outlines BSP's powers to conduct examinations of banks, oversee compliance with laws and regulations, investigate banks, and inquire into banks' solvency and liquidity. It also describes requirements for loans made by banks to their directors, officers, and shareholders. The document notes that the courts cannot intervene in receivership or closure actions taken by BSP against financially distressed banks.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    BSP’s supervisory and regulatory powers:

    1. Conduct of examination to determine Requirements to be complied with if any director,


    compliance with laws and regulations if the officer or stockholder contracts a loan or any financial
    circumstances so warrant as determined by accommodation from his bank:
    MB;
    2. Overseeing to ascertain that laws and 1. Approval requirement- the loan must be
    regulations are complied with; approved by at least majority of the entire
    3. Regular investigation which shall not be board excluding the borrowing director;
    oftener than once a year from the last date 2. Reportorial requirement- the loan must be
    of examination to determine whether an reported to BSP and entered into the books
    institution is conducting its business on a and records of the bank; and
    safe or sound basis; and 3. Unless non risk, loan shall not exceed the
    4. Inquiring into the solvency and liquidity of book value of the paid-up contribution and
    the institution. amount of his unencumbered deposit.
    5. If any irregularity is discovered in the 4. Sec. 26 of NCBA- lending bank shall require
    process, the MB may impose appropriate the borrowing DOSRI to waive secrecy of his
    sanctions such as suspending the offender deposits in whatever nature in all banks in
    from holding office or from being employed the Philippines.
    with CB

    NOTE: RTC has no jurisdiction to hear and decide a


    suit that seeks to place a bank under receivership or
    under management committee. Such authority is
    lodged with BSP. Court’s jurisdiction could only be
    invoked after MB has taken action and only on the
    ground of in excess of jurisdiction or with grave abuse
    of discretion as to amount to lack or excess of
    jurisdiction.

    NOTES ON CONSERVATORSHIP

    - A conservator, once appointed merely takes over the


    management of the bank and assumes exclusive
    REMEDIES OF A BANK: powers to oversee the bank’s operations and affairs.
    However, the bank retains its juridical personality.
    - The remedy of the bank is not prior to but after - A conservator cannot revoke a VALID contract of the
    issuance of the order by the BSP. bank. The powers of the conservator must be related
    - Injunction does not lie against the authority of BSP to to the preservation of the assets of the bank,
    appoint a conservator, or designate receiver or direct reorganization of management and restoration of
    the closure of a financially distressed bank, viability.
    - Appeal is not the remedy -Powers of conservator cannot extend to the post-
    - The decision of the BSP MB cannot be a proper facto repudiation of perfected transactions, otherwise
    subject matter for a petition for declaratory relief since they would infringe against the non-impairment
    it was issued by the BSP MB in the exercise of its quasi- clause of the Constitution.
    judicial power or functions.
    - The remedy available to the bank is to file petition for
    certiorari with the Court of Appeals subject to the
    requisites in Section 30 of NCBA.
    NOTES ON RECEIVERSHIP:

    - A bank receiver only has powers of administration, it


    cannot exercise acts of strict ownership. The properties of
    CLOSE NOW HEAR LATER DOCTRINE
    the bank may be sold only to pay its debts.
    - a rule that allows the BSP to order closure of the bank even
    - Receiver cannot pay or commit any act that will involve
    without prior notice and hearing. BSP may rely on the report
    transfer or disposition of any asset of the institution.
    of the head of its SED or of the conservator if one is
    -The appointment of a receiver operates to suspend the
    appointed.
    authority of the bank and of its directors and officers over
    - BSP is not required to conduct an audit of the bank before
    its property and effects.
    ordering the closure. Only a report of the head of the SED is
    -The bank placed under receivership shall be forbidden to
    necessary.
    do business. As such, it is not liable to pay interest on
    - The bank is not entitled to a copy of the report of
    deposits. It is however liable for obligations that accrued
    examination that the SED of BSP has prepared nor can the
    before the order forbidding it to do business.
    bank validly entitled to injunction to restrain BSP from
    - The period during which the bank cannot do business due
    adopting such report.
    to insolvency is NOT a fortuitous event, unless it is shown
    - Due process does not necessarily require a prior hearing; a
    that the government’s action to place a bank under
    hearing or an opportunity to be heard may be subsequent to
    receivership or liquidation is tainted with arbitrariness or it
    the closure.
    acted without jurisdiction.
    - A criminal case for violation of BP 22 against a bank placed
    under receivership by the MB may be dismissed for the
    demandability of the obligation is suspended.
    - The receiver cannot confirm or ratify an option to purchase
    real property because it is an act of dominion.
    -*Under RA 11211, upon the appointment for any statutory
    grounds, the receiver must proceed with the liquidation of
    the closed bank. The foregoing law has removed the
    authority of the receiver to rehabilitate the closed bank.
    - A closed bank under receivership can only sue or be sued
    through its receiver, the PDIC. Hence, a petition filed by a
    closed bank without joining the PDIC as a party is
    dismissible.
    - The designation of a conservator or appointment of a
    receiver shall be vested exclusively with the MB. Hence, the
    court cannot designate a conservator or appoint a receiver
    for a financially distressed bank.

    NOTES ON LIQUIDATION:
    - All disputed claims against the bank should be filed before
    the liquidation proceeding.
    - The liquidation of a bank may be carried out despite lack of
    tax clearance unlike in voluntary dissolution of a corporation.
    To require a tax clearance before distribution of assets of a
    bank would give absolute preference to the tax liabilities of
    the bank which is contrary to the rules on concurrence and
    preference of credits.
    - The exclusive jurisdiction of the liquidation court pertains
    only to the adjudication of claims AGAINST the bank. It does
    not cover the reverse situation where it is the bank which
    files a claim against another person or legal entity.

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