BANKING AND OTHER COMMERCIAL LAWS
Atty. Raymund Christian S. Ong Abrantes, CPA
Course requirements:
Written Exam Coverage Percentage
I Introduction to RA 7653 (The New 25%
Central Bank Act) as amended by
RA 11211
II RA 8791 General Banking Law of 25%
2000
III Special Banking Laws 25%
Recitation/Class 25%
Participation/Research Paper
Total 100%
Course Outline:
A. Introduction to Banking Legislations
B. Republic Act (RA) No. 7653 (The New Central Bank Act) as amended by RA 11211
1. Legal Evolution of Central Banking
2. Establishment and Organization of the Bangko Sentral ng Pilipinas (Article I, Chapter I)
• Reyes vs Rural Bank of San Miguel Inc. G.R. 154499
• United Coconut Planters Bank vs E. Ganzon, G.R. 168859 & G.R. 1688597 (2009)
• Commissioner of Customs vs Eastern Sea Trading G.R. No. L-14279
• DVP vs COA G.R. No. 88435 (2002)
• Gonzalo Sy Trading vs Central Bank G.R. No. L-41480, April 30, 1976
3. The Monetary Board (Article II, Chapter I)
4. The Governor and Deputy Governors of the Bangko Sentral (Article III, Chapter I)
5. Operations of the Bangko Sentral (Artile IV, Chapter I)
• Banco Filipino Savings and Mortgage Bank vs Monetary Board G.R. No. 70054, 68878, 77255-58,
78766, 78767, 78894, 81303, 81304 and 90473
• General Bank and Trust Company vs Central Bank G.R. No. 152551
• Abacus Real Estate Development Center vs The Manila Banking Corporation G.R. No. 162270
(2005)
• In Re: Petition for Assistance in the Liquidation of The Rural Bank of Bokod G.R. No. 158261
• Merchants Rural Bank of Talavera Inc vs Monetary Board G.R. No. 175114 (2007)
• Bangko Sentral vs Hon. Valenzuela G.R. 184778 (2009)
• Central Bank vs Dela Cruz G.R. No. 59957
• Busuego vs CA G.R. No. 95326
• APEX BANCRIGHTS HOLDINGS, INC., LEAD BANCFUND HOLDINGS, INC., ASIA WIDE REFRESHMENTS
CORPORATION, MEDCO ASIA INVESTMENT CORPORATION, ZEST-O CORPORATION, HARMONY
BANCSHARES HOLDINGS, INC., EXCALIBUR HOLDINGS, INC., and ALFREDO M. YAO vs. BANGKO
SENTRAL NG PILIPINAS DEPOSIT CORPORATION, and PHILIPPINE INSURANCE
6. Issue of Means of Payment (Article II, Chapter II)
• Philippine Airlines vs CA, G.R. No. 49188
• Far East Bank & Trust Company vs Diaz Realty Inc. G.R. No. 138588
7. Guiding Principles of Monetary Administration by the Bangko Sentral
• Domestic Monetary Stabilization
• International Monetary Stabilization
8. Instruments of Bangko Sentral Action
• General Criterion
• Operations in Gold and Foreign Exchange
i) The 1997 Asian Financial Crisis
ii) Bacolod-Murcia Milling Co vs Central Bank No. L-12610
• Regulation of Foreign Exchange Operations of the Banks
• Loans to Banking and Other Financial Institutions
• Open Market Operations for the Account of the Bangko Sentral
9. Functions as Banker and Financial Advisor of the Government
1
C. Republic Act No. 8791 (General Banking Law of 2000)
1. Declaration of Policy
• Simex International Manila Inc. vs CA G.R. No. 88013
• SolidBank Corporation vs Arrieta G.R. No. 152720
• Tan vs CA G.R. No. 108555
• MBTC vs CA G.R. No. 112576
• PNB vs CA G.R. No. 116181
• BPI vs CA G.R. No. 112393
2. Classification of Banks
3. Authority of the Bangko Sentral ng Pilipinas
• Supervisory Powers
• Policy Directions, Ratios, Ceilings and Limitations
4. Authority to Engage in Banking and Quasi-banking functions.
5. Examination by the Bangko Sentral
6. Organization, Management and Administration of Banks, Quasi-Banking and Trust Entities
• Organization
• Issuance of Stocks
• Treasury Stocks
• Foreign Stockholdings
• Stockholdings of Family Groups Or Related Interests
• Corporate Stockholdings
• Certificate of Authority to Register
• Board of Directors
• Fit and Proper Rule
• Compensation and Other Benefits of Directors and Officers
• Prohibitions of Public Officials
• Bank Branches
7. Deposits, Loans and Other Operations
• Operations of Universal Bank
• Operations of Commercial Bank
• Provisions applicable to all banks, quasi-banks and trust entities
i) Restrictions on Bank Exposure to DOSRI transactions
ii) Go vs Bangko Sentral G.R. No. 178429 (2009)
iii) Soriano vs People G.R. No. 162336 (2010)
iv) Government of the Philippine Islands vs El Hogar Filipinon G.R. No. L-26649
v) In Re: Liquidation of Mercantile Bank of China, Tan Tiong Tick vs American Apothecaries Co.
65 Phil 414
vi) Sebreno cs CA G.R. No. 89252
vii) Philippine Commercial International Bank vs CA G.R. 121413 (2001)
viii) CA Agro-Industrial Development Corporation vs CA G.R. No. 90027
• Close Now, Hear Later Doctrine
• Placement Under Conservatorship
• Cessation of Banking Business
• Foreign Banks
• Trust Operations
D. Special Banking Laws
1. Republic Act 3591
• Powers and Functions of PDIC
• Philippine Deposit Insurance Corporation vs Gidwani, GR 234616, 20 June 2018
2. Pre-Need
• Definition
i) Pre-need plans
ii) Pre-need company
• Registration of pre-need plans
• Licensing of sales counselor and general agent
• Default and termination
• Claims settlement
i) Securities and Exchange Commission v. Laigo, G.R. No. 188639
ii) Securities and Exchange Commission v. College Assurance Plan Philippines, Inc., G.R. No.
202052, [March 7, 2018])
3. Law on Secrecy of Bank Deposits (Republic Act No. 1405)
• Ejercito vs Sandiganbayan G.R. No. 157294-95
2
• PNB vs Gancayco G.R. No. L-18343 (1965)
• Mellon Bank vs Magsino G.R. No. 71479 (1990)
• Union Bank of the Philippines vs CA G.R. No. 134699 (1999)
• BSB Group Inc. vs Go G.R. No. 168644 (2010)
4. Foreign Currency Deposit Act
• Cancio vs CTA G.R. No. 73882 (1987)
• Philippine Savings Bank vs Senate Impeachment Court G.R. No. 200238 (2012)
• China Banking Corporation vs CA G.R. No. 140687
• Salvacion vs Central Bank G.R. No. 94723
• PDIC vs Citibank, N.A. G.R. No. 170290 (2012)
5. Republic Act 3765 (Truth in Lending Act)
6. Act No. 2655 (Usury Law)
7. Act No. 3936 (Unclaimed Balances Law)
• Rizal Commercial Banking Corporation vs Hi-Tri Development Corp G.R. No. 192413
• Republic vs PNB G.R. L-16106
8. Anti-Money Laundering Act (RA 9160 as amended by RA 9194); REPUBLIC ACT NO. 10167 (Further
Strengthening the Anti-Money Laundering Law, Amending for the Purpose Sections 10 and 11 of R.A.
No. 9160)
• Policy of the Law
• Covered Institutions
• Obligations of Covered Institutions
• Covered Transactions
• Suspicious Transactions
• Money Laundering; How Committed
• Unlawful Activities or Predicate Crimes
• Anti-Money Laundering Council
• Functions
• Freezing of Monetary Instrument or Property
• Authority to Inquire Into Bank Deposits
i) People v. Manalo, G.R. No. 192302 (Resolution), [June 4, 2014])
ii) Subido Pagente Certeza Mendoza and Binay Law Offices v. Court of Appeals, G.R. No. 216914,
[December 6, 2016])
iii) Intengan v. Court of Appeals, G.R. No. 128996, [February 15, 2002], 427 PHIL 293-309)
9. AN ACT PROTECTING INDIVIDUAL PERSONAL INFORMATION IN INFORMATION AND
COMMUNICATIONS SYSTEMS IN THE GOVERNMENT AND THE PRIVATE SECTOR, CREATING FOR THIS
PURPOSE A NATIONAL PRIVACY COMMISSION, AND FOR OTHER PURPOSES (RA 10173)
• Definitions and scope
• Extraterritorial application
• Processing of personal information
• General principles
• Sensitive and privileged information
• Subcontracting
• Privileged communication
• Rights of the data subject; exceptions/non-applicability
• Duties and responsibilities of personal information controller
Group Research Paper: Choose your own topic (must be related to banking and other special commercial
laws) i.e. bitcoins, fintech, etc. Paper must be not more than 20 pages (exclusive of references). Statement
of the Problem must be submitted on or before December 31, 2020.
END
