Question & AnswerQ&A (EXECUTIVE ORDER NO. 80)
The policy is to place primary reliance on the private sector and the market mechanism while maintaining government participation in banking to serve agriculture, small and medium enterprises, export development, and government sectors.
The principal office and place of business shall be in the National Capital Region, also known as Metro Manila.
The Bank is authorized to perform commercial and expanded commercial banking, provide banking for agriculture and SMEs particularly in the countryside, services to government entities, and engage in international banking especially to promote exports.
Loans must give preference to agriculture and small and medium enterprises, be subject to loan limits under Republic Act No. 337 as amended, and aggregate loans to government entities shall not exceed deposits plus 20% thereof.
The authorized capital stock is Ten Billion Pesos divided into One Hundred Million common shares with a par value of P100 per share, available for subscription by the National Government and private investors subject to banking laws.
The stockholders must adopt new Articles of Incorporation and by-laws within three months, the Charter ceases to have effect, special privileges are withdrawn, and the Bank becomes a private bank subject to general laws on banks.
The voting rights are vested in the President of the Philippines or such persons as the President may designate.
A director must be a natural-born Filipino citizen, at least 35 years old, of good moral character, and proficient in fields such as banking, finance, economics, law, agriculture, business management, public utility, or government administration.
They may be fined up to ten thousand pesos, or imprisoned for up to five years, or both.
They are prohibited from borrowing deposits or becoming guarantors or obligors to loans from the Bank, except for fringe benefits under Monetary Board rules.