general banking act-pdic
TRANSCRIPT
-
8/6/2019 General Banking Act-PDIC
1/16
Banking Laws
-
8/6/2019 General Banking Act-PDIC
2/16
` Definition and Classification ofBanks
` Nature ofBanking Business
Debtor-Creditor Relationship
Fiduciary Duty
Impressed with Public Interest
Diligence Required ofBanks
Cases Assigned
` Nature ofBank Funds and Bank Deposits
-
8/6/2019 General Banking Act-PDIC
3/16
`Grant of Loans and Security
Requirements:
Ratio ofnet worth to total risk assets Single Borrowers Limit
Restrictions on Bank Exposure to DOSRI
-
8/6/2019 General Banking Act-PDIC
4/16
` The Monetary Board will prescribe the minimum
ratio which the net worth ofa bank must bear to its
total risk assets.
` Ifthere is non-compliance, MB may: Limit or prohibit distribution of net profits and require the
same to be used to increase capital accounts until the
minimum ratio is achieved.
Restrict or prohibit acquisition of major assets and new
investments until minimum required capital ratio isachieved.
-
8/6/2019 General Banking Act-PDIC
5/16
` Total amount of loans, credit accommodations and
guarantees that may be extended to any person,
partnership, association, corporation or other
entity shall at no time exceed 25% of the net worthofa bank.
` Exceptions: MB otherwise prescribe for reasons ofnational interest.
Deposits of rural banks with government-owned otcontrolled financial institutions.
-
8/6/2019 General Banking Act-PDIC
6/16
` Total amount may be increased by an additional
10% provided the additional liabilities of any
borrower is adequately secured.
` Exception Otherwise provided by the MB.
-
8/6/2019 General Banking Act-PDIC
7/16
` No director or officer of any bank shall directly or
indirectly, for himself or as the representative or
agent of others, borrow from such bank nor shall
he become a guarantor, indorser or surety forloans form such bank or others or in any manner
be an obligor or incur any contractual liability to
the bank except with the written approval of the
majority of all directors of the bank, excluding thedirector concerned.
-
8/6/2019 General Banking Act-PDIC
8/16
Banking Laws
-
8/6/2019 General Banking Act-PDIC
9/16
` Basic Policy: Promote and safeguard the interestof the depositing public by way of providingpermanent and continuing insurance coverage onall insured deposits.
` Deposit: any unpaid balance of money or itsequivalent received by the bank in the usualcourse of business and for which it has given or itsobliged to give credit to a commercial, checking,
savings, time or thrift account, or which isevidenced by a passbook check and /or certificateofdeposit.
-
8/6/2019 General Banking Act-PDIC
10/16
` Statutory Liability. PDIC is governed primarily bythe provisions of the law creating it. Hence, liabilityis statutory and rests upon the existence ofdeposits with the insured bank.
` Case: PDIC vs. CA, December 22, 1997.
` Payment. Whenever a bank is closed by the MB,PDIC shall pay insured deposits: By cash or
By making available to each depositor a transferreddeposit in another insured bank in an amount equal toinsured deposit ofsuch depositor.
-
8/6/2019 General Banking Act-PDIC
11/16
` Insured Deposit means the amount due to any
depositor for deposits in an insured bank net of
any obligation of the depositor to the insured bank
as of the date of closure, but not to exceedP500,000.00.
` In determining such amount, all deposits in the
bank maintained in the same right and capacity for
the benefit of the depositoreither in his own nameor in the name ofothers shall be added together.
-
8/6/2019 General Banking Act-PDIC
12/16
` Joint Account regardless of whether the
conjunction used is and, or, and/or, shall be
insured separately from any individually-owned
deposit account.` Accounts held jointly by two or more natural
persons or two or more juridical persons or
entities, the maximum insured deposit shall be
divided into as many equal shares are there arepersons unless a different sharing is stipulated.
-
8/6/2019 General Banking Act-PDIC
13/16
` If account is held by a juridical person jointly
with one or more natural person, the maximum
insured deposit shall be presumed to belong
entirely to the juridical person.` The aggregate of the interest of each co-owner
over several joint accounts, whether owned by the
same or different combinations of individuals,
juridical persons or entities, shall likewise besubject to the maximum insured deposit of Five
Hundred Thousand Pesos (P500,000.00).
-
8/6/2019 General Banking Act-PDIC
14/16
` No owner/holder of any negotiable certificate of depositshall be recognized as a depositor unless his name isregistered as owner/holder thereof in the books of theissuing bank.
` That, in case of a condition that threatens the monetary
and financial stability of the banking system as determinedby the Monetary Board, the maximum deposit insurancecover may be adjusted in such amount, for such a period,and/orfor such deposit products, as may be determined bya unanimous vote of the Board of Directors in a meetingcalled for the purpose and chaired by the Secretary of
Finance, subject to the approval of the President of thePhilippines.
-
8/6/2019 General Banking Act-PDIC
15/16
` Prescription. 2 years from actual takeover of the closed bank bythe receiver orfailure to enforce claim within 2 years after the 2year period to file a claim unless otherwise waived by PDIC
` Notice. To creditors by whatever means the BOD deemedappropriate.
`
Publication. Notice is published once a week for 3 consecutiveweeks in a newspaper of general circulation or a newspapercirculated where the closed bank are located ifappropriate.
` Delay. Failure to settle claim within 6 months from date of filingof claim. Responsible director, officers of employees of PDICshall upon conviction be imprisoned from 6 months to 1 year.Exception: Validity of claim requires resolution of issues orfactsby another agency.
-
8/6/2019 General Banking Act-PDIC
16/16
` Effect of Payment by PDIC. Subrogation of rights ofthe depositor against the closed bank to the extent ofsuch payment.
` TRO and Injunction. No other court except CA may
issue against PDIC` SC may issue restraining order or injunction when the
matter is of extreme urgency involving a constitutionalissue. Provided, the party applying shall furnish abond in an amount fixed by the court in favor of PDIC
if the court should finally decide that the applicant wasnot entitled to reliefsought.