NEW CENTRAL BANK ACT

Republic Act No. 7653

IN GENERAL
The Bangko Sentral ng Pilipinas is the States central monetary authority, mandated in the 1987
Constitution, which shall function and operate as an independent and accountable body corporate
in the discharge of its mandated responsibilities concerning money, banking and credit. [Section 1,
RA 7653]
The Bangko Sentral shall enjoy fiscal and administrative autonomy. [Section 1, RA 7653]

GENERAL BANKING ACT
Republic Act No. 337, as amended


An act regulating banks and banking institutions and for other purposes

IN GENERAL

Rule on bank operations
Only entities duly authorized by the Monetary Board of the Bangko Sentral may engage in the
lending of funds obtained from the public through the receipt of deposits of any kind and all entities
regularly conducting such operations shall be considered as banking institutions.

Banks or banking institutions
Entities engaged in the lending of funds obtained from the public through the receipt of deposits of
any kind, and all entities regularly conducting such operation.
Banks or banking institutions must be duly authorized by the Monetary Board of the Central Bank.

GENERAL BANKING LAW OF 2000
REPUBLIC ACT NO. 8791

An act providing for the regulation of the organization and operations of banks, quasi- banks, trust
entities and for other purposes

Declaration of policy

The State recognizes the vital role of banks in providing an environment conducive to the
sustained development of the national economy and the fiduciary nature of banking that
requires high standards of integrity and performance. In furtherance thereof, the State shall
promote and maintain a stable and efficient banking and financial system that is globally
competitive, dynamic and responsive to the demands of a developing economy.

THE INVESTMENT HOUSES LAW
Presidential Decree 129

A law governing the establishment, operation and regulation of Investment Houses.

IN GENERAL
Any enterprise which engages in the underwriting of securities of other corporations shall be
considered an "Investment House" and shall be subject to the provisions of this Decree and of
other pertinent laws.

FOREIGN BANK LIBERALIZATION
Republic Act No. 7721
An act liberalizing the entry and scope of operations of foreign banks in the Philippines and for other
purposes.

Declaration of policy
The State shall:
1. Develop a self-reliant and independent national economy effectively controlled by
Filipinos; and
2. Encourage, promote and maintain a stable, competitive, efficient and dynamic banking
and financial system.
Pursuant to this policy, the Philippine banking and financial system is hereby liberalized to
create a more competitive environment and encourage greater foreign participation through
increase in ownership in domestic banks by foreign banks and the entry of new foreign bank
branches.
In allowing increased foreign participation in the financial system, it shall be the policy of the
State that the financial system shall remain effectively controlled by Filipinos.
Public shall mean twenty or more lenders.

OFFSHORE BANKING SYSTEM LAW
Presidential Decree No. 1034

A law authorizing the establishment of an offshore banking system in the Philippines

FOREIGN CURRENCY DEPOSIT ACT
Republic Act No. 6426

An act instituting a foreign currency deposit system in the Philippines and for other purposes/

Authority to deposit foreign currencies
Any person, natural or juridical, may deposit with such Philippine banks in good standing, as may
upon application be designated by the Central Bank for the purpose, foreign currencies which
are acceptable as part of the international reserve.

Exception
Foreign currencies which are required by the Central Bank to be surrendered in accordance with
the provisions of RA 7653 may not be deposited.
An act instituting a foreign currency deposit system in the Philippines and for other purposes
An act instituting a foreign currency deposit system in the Philippines and for other purposes

THE TRUTH IN LENDING ACT
Republic Act No. 3765

An act to require the disclosure of finance charges in connection with extensions of credit

Declaration of policy
It is hereby declared to be the policy of the State to protect its citizens from a lack of awareness
of the true cost of credit to the user by assuring a full disclosure of such cost with a view of
preventing the uninformed use of credit to the detriment of the national economy.

LAW ON SECRECY OF BANK DEPOSITS
Republic Act No. 1405

An act prohibiting disclosure of or inquiry into, deposits with any banking institution and providing
penalty therefore, as amended

General rule
All deposits of whatever nature with banks or banking institutions in the Philippines including
investments in bonds issued by the Government of the Philippines, its political subdivisions and
its instrumentalities, are hereby considered as of an absolutely confidential nature and may not
be examined, inquired or looked into by any person, government official, bureau or office.
[Section 2, RA 1405]

ANTI-MONEY LAUNDERING ACT OF 2001
Republic Act No. 9160

An act defining the crime of money laundering, providing penalties therefor and for other purposes

Declaration of policy
It is hereby declared the policy of the State to protect and preserve the integrity and
confidentiality of bank accounts and to ensure that the Philippines shall not be used as a money
laundering site for the proceeds of any unlawful activity. Consistent with its foreign policy, the
State shall extend cooperation in transnational investigations and prosecutions of persons
involved in money laundering activities wherever committed.

ACT CREATING THE PHILIPPINE DEPOSIT INSURANCE CORPORATION
Republic Act No. 3591

An act establishing the Philippine Deposit Insurance Corporation, defining its powers and duties and for
other purposes

Creation of PDIC
There is hereby created a Philippine Deposit Insurance System which shall insure the deposits of
all banks which are entitled to the benefits of insurance under RA 3591.
PDIC may also be appointed as receiver of a banking institution.


PDIC CHARTER
Republic Act No. 9576

An act increasing the maximum deposit insurance coverage, and in connection therewith, to strengthen
the regulatory and administrative authority, and financial capability of the PDIC.