SyCip Salazar Hernandez & Gatmaitan
  May 6, 2013 - Philippines

The Banking Regulation Review 4th Edition – Philippines
  by Rafael A. Morales

Chapter 43
Philippines
Rafael A Morales1

I INTRODUCTION
Banks in the Philippines are classified into (1) universal banks, (2) commercial banks, (3) thrift banks, (4) rural banks, (5) cooperative banks, (6) Islamic banks, (7) government-owned banks, and (8) other banks as may be classified by the Bangko Sentral ng Pilipinas (‘BSP’).2 Universal and commercial banks are the dominant group, representing approximately 70 per cent of the resources of the banking system.3 Under the General Banking Law of 2000 (‘GBL’), a universal bank is defined as a commercial bank with the additional authority to exercise the powers of an investment house and invest in non-allied enterprises.4 An ordinary commercial bank does not have that authority.

There are branches, as well as subsidiaries or affiliates, of foreign banks in the Philippines that are licensed either as universal or commercial banks. Others have offshore banking units with more limited functions.5

The BSP, which is the Philippine central bank, acting through its Monetary Board, is mandated by law to ensure that the control of 70 per cent of the resources or assets of the banking system is held by domestic banks that are at least majority-owned by Philippine nationals.6

II THE REGULATORY REGIME APPLICABLE TO BANKS
The GBL governs universal and commercial banking. Special laws or charters regulate the operations of the other banks,7 but the GBL still applies to them insofar as it is not in conflict with those laws or charters. In fact, the Philippine Cooperative Code of 2008 recognises the primacy of the GBL in the regulation of cooperative banks.8 

The rules implementing the various banking laws are embodied in the Manual of Regulations for Banks issued by the BSP. From time to time, additional circulars and other issuances are promulgated by the BSP to regulate new matters, if not to amend, repeal or otherwise modify existing rules.

The New Central Bank Act (Republic...

Download the entire Philippine section from the SyCipLaw website.



Footnotes:




Read full article at: http://www.syciplaw.com/Documents/Philippines.pdf