Professional Documents
Culture Documents
Banking Mon 7718
Banking Mon 7718
Banking Mon 7718
I. Conservatorship
II. Receivership
III. Liquidation
Conservatorship is an attempt to save the bank from bankruptcy. Receivership enclosure of bank by BSP
due to probable loss. Liquidation is when there is no hope of rehabilitating the bank then the bank shall
pay the creditors.
Liquidation: Stop Operation, discontinue the life of the corporation and distribute its assets to is
creditors
Deposits do not become preferred credits meaning because it does not comply with 2244 of the NCC
and it is not notarized. The law states that once notarized, credit will become preferred credits
automatically.
SINGLE BORROWER’S LIMIT – One of the checklist whether to grant a loan or not.
You cannot put all your eggs in one basket because you will also be liable for the loss.
EXAMPLE: SAN MIGUEL GROUP has may companies. Hence, only one limit, as a general rule. However, if
there is guarantee by BSP or government then it may be exception. Less risky.
UPTO Currency monetary stabilization and functions of BSP Quiz for Wednesday..