57205524 Banking Laws Reviewer

Topics: Bank, Banking, Fractional-reserve banking Pages: 26 (16846 words) Published: December 3, 2014
Page 1 of 26

BANKING LAWS
GOVERNING LAW
Banking Institution are governed by the following
laws:
A. General banking laws
 General Banking Law (R.A. No. 8791)
.
New Central Bank Act (R.A. No.
7653)
B. Special banking laws

New Rural Banks Act (R.A. No. 7353)

Private Development Banks Act
(R.A. No. 4093)

Savings and Loan Association Act
(R.A. No. 3779)
 . Thrift Banks Act (R.A. No. 7906)
C. Other laws affecting banks
 Secrecy of Bank Deposits Law
(R.A. No. 1405)
 Unclaimed Balances Law (Act No. 3936)

Philippine Deposit Insurance Corporation Act
(R.A. No. 3591)
 The general banking laws above mentioned are
applicable to government banks like DBP and PNB.
 The Al- Amanah Islamic Bank is subject to all banking
and pertinent laws.
(Bar Review Materials
Miravite, 2002
ed.)

in Commercial Law, Jorge

T HREE KINDS OF ENTITIES THAT INTRODUCE FUNDS
INTO THE ECONOMY :
1.
2.
3.

banks : entities that obtains funds from the public
in the form of deposits and re-lend it to the public;
quasi-banks : those that obtain funds in the form of
deposit substitutes and re-lend the same and not
from the public or depositors.
Finance companies and other financial
intermediaries: those that lend funds from their
own assets.

FIVE PERSONS PRIMARILY INTERESTED IN THE
BUSINESS OF BANKING
1.
2.
3.
4.
5.

Government
Depositors
Investors
Creditors
Borrowers

BAR QUESTION:
JOINT ACCOUNT VS. PARTNERSHIP (2000)
Distinguish joint account from partnership. (3%)
SUGGESTED ANSWER
The following are the distinctions between joint
account and partnership:
1) A partnership has a firm name while a joint
account has none and is conducted in the name of the
ostensible partner.
2) WHILE A PARTNERSHIP HAS JURIDICAL
PERSONALITY AND MAY SUE OR BE SUED
UNDER ITS FIRM NAME, A JOINT ACCOUNT
HAS NO JURIDICAL PERSONALITY AND CAN
SUE OR BE SUED ONLY IN THE NAME OF THE
OSTENSIBLE PARTNER.
3) While a partnership has a common fund, a joint
account has none.
4) While in a partnership, all general partners have
the right of management, in a joint account, the
ostensible partner manages its business operations.
5)
While liquidations of a partnership may, by
agreement, be entrusted to a partner or partners, in
joint account liquidation thereof can only be done by
the ostensible partner.

BAR QUESTION:
Theory of Cognition vs. Theory of Manifestation
(1997)
The Civil Code adopts the theory of cognition, while
the Code of Commerce generally recognizes the
theory of manifestation, in the perfection of
contracts. How do these two theories differ?
SUGGESTED ANSWER:
Under the theory of cognition, the acceptance is
considered to effectively bind the offeror only from
the time it came to his knowledge. Under the theory
of manifestation, the contract is perfected at the
moment when the acceptance is declared or made by
the offeree.

Notes of

hotjurist
in foro
conscientiae

Page 2 of 26



GENERAL BANKING LAW OF 2000 (GBL)
(RA No. 8791)

Purpose: To promote and maintain a stable and
efficient banking and financial system that is globally
competitive, dynamic and responsive to the demands of
a developing economy (Sec. 2).
Scope of Application: The GBL primarily governs
universal banks and commercial banks. It suppletorily
governs thrift banks, rural banks and other banking
institutions.

The certificate of authority shall not be issued
unless the Monetary Board is satisfied:
1.

That all requirements of existing laws and
regulations to engage in the business for which
the applicant is proposed to be incorporated
have been complied with;

2.

That the public interest and economic
conditions, both general and local, justify the
authorization; and

3.

That the amount of the capital, the financing,
organization, direction and administration, as
well as the integrity and responsibility of the
organizers and administrators, reasonably...
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