Banking Laws

Question 1

🟢 RA 7653 🟢

Answer 1

New Central Bank Act

Question 2

Requisites before a bank/quasi-bank is placed under conservatorship

Answer 2

1. Report by appropriate department
   a. There’s a report submitted by the appropriate supervising or examining department.
2. Finding of liquidity problem/s
   a. The monetary board finds that the bank or the quasi-bank is in a state of continuing inability or unwillingness to maintain a condition of liquidity deemed adequate to protect the interest of the depositors and creditors.
3. Appointment of conservator
   a. After finding a liquidity problem, it will then appoint a conservator.

Question 3

how to question an action of a MB (monetary board) whose acts are final & executory

Answer 3

certiorari before the CA/SC

Question 4

CONSERVATORSHIP-TERMINATION GRoudns

Answer 4

● When MB is satisfied that the institution can continue to operate on its own; or

● When MB determines that the continuance of business would involve probable loss to depositors or creditors.

Question 5

When is the bank placed under receivership?

Answer 5

● equity test
● balance sheet/insolvency test
● probable losses
● violation of CDO (cease & desist)

Question 6

when does the receiver of a bank takeover & exercises his poiwers?

Answer 6

when notice of closure takes effect thru

1. service of notice to highest ranking officer in the bank premises or
2. posting of notice in the bank premises/main entrance

then the receiver can now exercise powers

Question 7

🟢 RA 8791🟢

pg. 6

Answer 7

General Banking Law