Laws Governing Banking Institutions

1. By what laws are banking institutions governed?

Bangko Sentral ng Pilipinas

2. Which institution is in charge as fiscal agent, depositary and financial advisor,
among others, of the Philippine Government?
What are the responsibilities and primary objectives of the Bangko Sentral ng
Pilipinas?

3. By what body are the powers and functions of the Bangko Sentral ng Pilipinas
exercised? Give the composition and membership of that body.

4. Mention the corporate powers of the Bangko Sentral ng Pilipinas.

5. What is the “legal tender power” and the “exclusive issue power” in relation
to the power of the Bangko Sentral ng Pilipinas’ sole power and authority to
issue currency?

6. One of the mandates of the Bangko Sentral ng Pilipinas (BSP) is monetary

stabilization. How does the BSP perform this mandate? (See Sections 61, 64,
65, 69, 70 and 74 of RA 7653)

7. Discuss the role of the Bangko Sentral ng Pilipinas as the lender of last resort.

Conservatorship, Receivership and Liquidation of Banks

8. What are the grounds for placing a bank under conservatorship?

9. When a bank is placed under conservatorship, a conservator is appointed by

the Monetary Board. What are the functions of a conservator?

10. Answer the following as regards the consequences when a bank is placed
under conservatorship:
a. Is the designation of a conservator a precondition to the designation
of a receiver?
b. Does a bank placed under conservatorship lose its juridical
personality?
c. What can a conservator do, under Section 29 of the New Central Bank
Act (RA 7653), as regards defective contracts?

11. What are the grounds for placing a bank under receivership?

12. Under RA 7653, who is appointed as the receiver of a bank placed under
receivership? What are its duties?

13. A. May a Monetary Board Resolution placing a bank under receivership be

annulled on the ground of lack of prior notice and hearing?
 B. What is the “Close Now Hear Later” scheme?

C. What is the remedy to assail the propriety of placing a bank under

receivership?

14. Give the basic requirements to be complied with by the Bangko Sentral ng
Pilipinas before the Monetary Board can declare a bank insolvent, order it
closed and forbid it from doing further business in the Philippines?

15. Answer the following questions as regards the effects of placing a bank under
receivership and liquidation:
a. May the assets of an institution under receivership and liquidation be
the subject of garnishment, levy, attachment or execution?
b. True or False. There will be no preference even if the claimant-
depositor obtained a writ of preliminary attachment. After the
declaration of insolvency, the remedy of the depositor is to intervene
in the liquidation proceedings.
c. Does a bank placed under receivership lose its juridical personality?
d. Can a bank placed under receivership still foreclose mortgage?
e. Can a bank placed under receivership pay interests on deposits?