Article 144p. 144

COMMERCIAL LAWS NEGOTIABLE INSTRUMENTS, CORPORATION, INSURANCE, TRANSPORTATION, BANKING

administered, disposed of and liquidated by the Central

Bank itself which shall continue to exist as the CB Board

of Liquidators only for the purposes provided in this

paragraph but not later than twenty-five (25) years or

until such time that liabilities have been liquidated:

Provided , That the Bangko Sentral may financially assist

the Central Bank Board of Liquidators in the liquidation of

CB liabilities: Provided, finally , That upon disposition of

said retained assets and liquidation of said retained

liabilities, the Central Bank shall be deemed abolished.

All actions taken by the Bangko Sentral Monetary Board

under this section shall be reported to Congress and the

President within thirty (30) days.

SECTION 133. Mandate to Organize . — The Bangko

Sentral

shall

be

organized

by

the

Monetary

Board

without being subject to the provisions of Republic Act

No. 7430 , by adopting if it so desires, an entirely new

staffing pattern on organizational structure to suit the

operations of the Bangko Sentral under this Act. No

preferential or priority right shall be given to or enjoyed

by any personnel for appointment to any position in the

new

staffing

pattern,

nor

shall

any

personnel

be

considered as having prior or vested rights with respect

to retention in the Bangko Sentral or in any position

which may be created in the new staffing pattern, even if

he should be the incumbent of a similar position prior to

organization.

The

formulation

of

the

program

of

organization shall be completed within six (6) months

after

the

effectivity

of

this

Act,

and

shall

be

fully

implemented within a period of six (6) months thereafter.

Personnel

who

may

not

be

retained

are

deemed

separated from the service.

SECTION

134.

Separation

Benefits .

—

Pursuant

to

Section 15 of this Act, the Monetary Board is authorized to

provide separation incentives, and all those who shall

retire or be separated from the service on account of

reorganization under the preceding section shall be

entitled to such incentives, which shall be in addition to

all gratuities and benefits to which they may be entitled

under existing laws.

SECTION 135. Repealing Clause . — Except as may be

provided for in Sections 46 and 132 of this Act, Republic

Act No. 265 , as amended, the provisions of any other law,

special charters, rule or regulation issued pursuant to said

Republic Act No. 265 , as amended, or parts thereof, which

may be inconsistent with the provisions of this Act are

hereby repealed. Presidential Decree No. 1792 is likewise

repealed.

SECTION 136. Transfer of Powers . — All powers, duties

and functions vested by law in the Central Bank of the

Philippines not inconsistent with the provisions of this Act

shall be deemed transferred to the Bangko Sentral ng

Pilipinas.

All

references

to

the Central Bank of the

Philippines in any law or special charters shall be deemed

to refer to the Bangko Sentral . cd

SECTION 137. Separability Clause . — If any provision or

section of this Act or the application thereof to any

person

or

circumstance

is

held

invalid,

the

other

provisions or sections of this Act, and the application of

such

provision

or

section

to

other

persons

or

circumstances, shall not be affected thereby.

SECTION 138. Effectivity Clause . — This Act shall take

effect fifteen (15) days following its publication in the

Official Gazette or in two (2) national newspapers of

general circulation.

Approved: June 14, 1993

Published in Malaya and the Philippine Times Journal on

June 18, 1993. Published in the Official Gazette, Vol. 89 No.

32 page 4425 on August 9, 1993.

(New Central Bank Act, Republic Act No. 7653, [June 14,

1993])

RA No 8791 | The General Banking Law

of 2000

May 23, 2000

REPUBLIC ACT NO. 8791

AN ACT PROVIDING FOR THE REGULATION OF THE

ORGANIZATION AND OPERATIONS OF BANKS,

QUASI-BANKS, TRUST ENTITIES AND FOR OTHER

PURPOSES

CHAPTER I Title and Classification of Banks

SECTION 1. Title . — The short title of this Act shall be "The

General Banking Law of 2000." (1a)

SECTION 2. Declaration of Policy . — The State recognizes

the vital role of banks in providing an environment

conducive to the sustained development of the national

economy

and

the

fiduciary

nature of banking that

requires high standards of integrity and performance. In

furtherance

thereof,

the

State

shall

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. (n)

SECTION 3. Definition and Classification of Banks . —

3.1. "Banks" shall refer to entities engaged in the lending

of funds obtained in the form of deposits. (2a)

3.2. Banks shall be classified into:

(a) Universal banks;

(b) Commercial banks;

(c) Thrift banks, composed of: (i) Savings and mortgage

banks, (ii) Stock savings and loan associations, and (iii)

Private development banks, as defined in Republic Act

No. 7906 (hereafter the "Thrift Banks Act");

(d) Rural banks, as defined in Republic Act No. 7353

(hereafter the " Rural Banks Act ");

(e) Cooperative banks, as defined in Republic Act No.

6938 (hereafter the " Cooperative Code ");

(f) Islamic banks as defined in Republic Act No. 6848 ,

otherwise known as the "Charter of Al Amanah Islamic

Investment Bank of the Philippines"; and

(g) Other classifications of banks as determined by the

Monetary Board of the Bangko Sentral ng Pilipinas. (6-Aa)

CHAPTER II Authority of the Bangko Sentral

SECTION 4. Supervisory Powers . — The operations and

activities of banks shall be subject to supervision of the

Bangko Sentral. "Supervision" shall include the following:

4.1. The issuance of rules of conduct or the establishment

of standards of operation for uniform application to all

institutions

or

functions

covered,

taking

into

consideration the distinctive character of the operations

of institutions and the substantive similarities of specific

functions to which such rules, modes or standards are to

be applied;

4.2. The conduct of examination to determine compliance

with laws and regulations if the circumstances so warrant

as determined by the Monetary Board;

4.3. Overseeing to ascertain that laws and regulations are

complied with;

4.4. Regular investigation which shall not be oftener than

once

a

year

from

the

last

date of examination to

determine

whether

an

institution

is

conducting

its

business on a safe or sound basis: Provided , That the

deficiencies/irregularities found by or discovered by an

audit shall be immediately addressed;

4.5. Inquiring into the solvency and liquidity of the

institution (2-D); or

© Compiled by RGL

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