Law Summary
Powers and Scope of Authorities of Thrift Banks (TBs)
- TBs have powers granted by other laws along with additional specified authorities:
- Purchase, hold, and convey real estate as allowed under Sections 51 and 52 of RA No. 8791.
- Offer other banking services provided in Section 53 of RA No. 8791.
- Buy and sell foreign exchange.
- Subject to prior approval and guidelines from the Monetary Board, TBs may also:
- Open current or checking accounts.
- Engage in trust, quasi-banking functions, and money market operations.
- Act as collection agents for government entities like BIR, SSS, and BOC.
- Serve as official depositories of national or local government funds where located.
- Issue, buy, sell, or accept mortgage and chattel mortgage certificates.
- Invest in the equity of allied undertakings.
- Issue foreign letters of credit.
- Pay, accept, or negotiate import/export drafts or bills of exchange.
Powers and Scope of Authorities of Rural Banks (RBs)
- RBs have powers granted by law, plus:
- Offer other banking services under Section 53 of RA No. 8791.
- Buy and sell foreign exchange.
- With Monetary Board approval and certain conditions (e.g., net assets of at least P5.0 million), RBs may:
- Accept current or checking accounts.
- Accept negotiable order of withdrawal (NOW) accounts.
- Act as trustees over estates or properties of farmers and merchants.
- Act as official depositories of local government funds.
- Sell domestic drafts.
- Invest in allied undertakings.
Powers and Scope of Authorities of Cooperative Banks (Coop Banks)
- Coop Banks primarily serve cooperatives and their members but may extend services to non-members and the general public.
- Besides powers granted by existing laws, Coop Banks may:
- Perform any banking services offered by Rural Banks under Items 4.a to 4.g.
- With BSP approval, perform any services offered by Rural Banks under Items 4.h to 4.m.
- With BSP approval, perform any services offered by other types of banks.
Regulatory Oversight and Implementation
- Certain expanded services of TBs, RBs, and Coop Banks require prior approval from the Monetary Board.
- Guidelines for such approvals are established by the Monetary Board.
Effective Date
- The amendments take effect fifteen calendar days after publication in the Official Gazette or a newspaper of general circulation.