Question & AnswerQ&A (BSP Circular No. 865)
Section X101 outlines the classifications, powers, and scope of authorities of banks, as well as the prerequisites for the grant of banking authorities in the Philippines.
The classifications include Universal Banks (UBs), Commercial Banks (KBs), Thrift Banks (TBs), Rural Banks (RBs), and Cooperative Banks (Coop Banks).
TBs may perform various services including purchasing, holding, and conveying real estate as specified under Sections 51 and 52 of RA No. 8791; offering other banking services as provided in Section 53 of RA No. 8791; and buying and selling foreign exchange, among others.
Yes, with prior approval from the Monetary Board, TBs may open current/checking accounts, engage in trust and money market operations, act as collection agents for government entities, serve as official depositories for government funds, issue mortgage certificates, invest in allied undertakings, issue foreign letters of credit, and handle import/export drafts and bills of exchange.
RBs may accept current or checking accounts if they have net assets of at least ₱5 million, accept negotiable order of withdrawal (NOW) accounts, act as trustees over estates of farmers and merchants, serve as official depositories of local funds, sell domestic drafts, and invest in allied undertakings.
A Cooperative Bank primarily provides financial, banking, and credit services to cooperatives and their members but may also provide the same services to non-members or the general public.
Yes, any Cooperative Bank may perform any or all of the banking services offered by Rural Banks as specified, and may perform services offered by other bank types subject to prior BSP approval.
They must obtain prior approval from the Monetary Board and comply with any guidelines established by it.
Under Sections 51 and 52 of Republic Act No. 8791 (The General Banking Law of 2000).
The Circular took effect fifteen (15) calendar days following its publication either in the Official Gazette or in a newspaper of general circulation.