Question & AnswerQ&A (BSP CIRCULAR NO. 382)
It refers to a banking institution that has been forbidden from doing business in the Philippines by the Monetary Board under the grounds provided in Section 30 of R.A. No. 7653 and placed under receivership by the Philippine Deposit Insurance Corporation.
Directors or officers are prohibited from: refusing to turn over bank records/assets to receivers, tampering with records, appropriating or destroying assets, receiving deposits or loan collections, paying out bank funds, and transferring securities or property of the bank.
The Philippine Deposit Insurance Corporation is responsible for the receivership of a bank declared insolvent or placed under receivership by the Monetary Board.
They are subject to sanctions under Sections 36 and 37 of R.A. 7653 in relation to Section 66 of R.A. No. 8791. They will also be included in the watchlist of disqualified persons from holding positions in banks or financial institutions.
It took effect fifteen (15) days after its publication in the Official Gazette or a newspaper of general circulation following its adoption on April 1, 2003.
It was issued pursuant to Monetary Board Resolution No. 73 dated January 16, 2003, to implement Section 70 of Republic Act No. 8791 (The General Banking Law of 2000).
Section 30 of R.A. No. 7653 provides the applicable grounds for the Monetary Board to declare a bank insolvent or place it under receivership.
They are included in the watchlist files of directors/officers disqualified by the Monetary Board, preventing them from holding any position in any bank or financial institution.
No, receiving or permitting the receipt of deposits, loan collections, or receivables is prohibited while the bank is declared insolvent or under receivership.
Such refusal is a prohibited act subject to penalties and sanctions under the pertinent laws, including disqualification from holding positions in banks and financial institutions.