Question & AnswerQ&A (BATAS PAMBANSA BLG. 61)
Entities regularly engaged in lending funds or purchasing receivables with funds obtained from the public through debt instruments, entities regularly engaged in lending that receive deposits occasionally, and trust companies, building and loan associations, and non-stock savings and loan associations are not considered banking institutions but are regulated by the Monetary Board.
The Monetary Board may regulate non-bank financial intermediaries by imposing constraints on minimum size of funds received, methods of marketing and distribution, terms and maturities of funds received, and uses of funds. These entities may also be subject to regulation under Section 2-A if authorized to perform quasi-banking functions.
Banking institutions are classified into commercial banks, thrift banks (including savings and mortgage banks, stock savings and loan associations, private development banks), and rural banks. Specialized government banks are not included in this classification but are supervised by the Central Bank.
No. Under Section 6-B, they may only open branches, agencies, or extension offices nationwide with prior approval from the Monetary Board.
A corporation primarily owning equity in thrift or rural banks may own more than 30% up to majority or all, but such acquisition requires prior approval of the Monetary Board and must comply with ownership limits on individuals or entities as provided in other sections.
At least two-thirds of the members of the board of directors of any bank or banking institution must be Filipino citizens.
Commercial banks can accept drafts, issue letters of credit, discount promissory notes and other debts, receive deposits, buy and sell foreign exchange and bullion, and lend money against personal or real estate securities.
Commercial banks may invest in equities up to 25% of their net worth in total, with no more than 15% in any single enterprise, and equity holdings must remain minority except in certain cases approved by the Monetary Board.
The combined capital accounts of commercial banks must be at least 10% of their risk assets, although the Monetary Board may allow a lower ratio not less than 5% under certain conditions.