The G eneral Banking

L aw of 2000
R A No. 8791
hapters 3 10

A report by Gopio, Mangio & Ng

O rganization,
Management and
Administration of
Banks, Quasi banks
and Trust E ntities
 O rganization
The Monetary Board may authorize the organization of a
bank or quasi-bank subject to the following conditions:

➔ That the entity is a stock corporation

➔ That its funds are obtained from the public, which

shall mean 20 or more persons

➔ That the minimum capital requirements

prescribed by the Monetary Board for each
category of banks are satisfied
9. Issuance of S tocks
P ar Value S tocks only

10. Treasury S tocks

No creation of treasury shares
except when authorized by the
Monetary Board

P rovided they must dispose such

within 6 months from the time of
its purchase or acquisition
F oreign S tockholdings
F oreign individuals and non bank
corporations may own or control
up to 40% of the voting stock of a
domestic bank

*This rule shall apply to F ilipinos

and domestic non bank
corporations
 2 S tockholdings of F amily
G roups or R elated Interests
Must be fully disclosed in all
transactions by such an individual
with the bank

*within the 4th degree of

consanguinity or affinity,
legitimate or common law
3. C orporate S tockholdings
Must be fully disclosed in all
transactions by such corporations
or related groups of persons with
the bank

*R elated interests = 2 or more

corporations owned or
controlled by the same family
group or same group of persons
4. C ertificate of Authority to
R egister
S E C shall not register the by laws
of any bank, or any amendment
thereto, unless accompanied by
certificate of authority from the BS P

S E C shall not register the of

any bank, or any amendment
thereto, unless accompanied by
certificate of authority issued by the
MB
➔ That all requirements of existing laws and
regulations to engage in the business for which
the applicant is proposed to be incorporated have
been complied with

➔ That the public interest and economic conditions,

both general and local, justify the authorization

➔ That the amount of capital, the financing,

organization, diretion and administration, as well as
the integrity and responsibility of the organizers
and administrators reasonably assure the safety of
deposits and the public interest
5. Board of D irectors
At least , and a maximum of
members, 2 of whom shall be
independent directors

*other than an officer or employee

of the bank, its subsidiaries or
affiliates or related interests

*meetings may be conducted

through modern technologies
 6. F it and P roper R ule
Monetary board shall prescribe, pass upon and
review the qualifications and disqualifications of
individuals elected or appointed bank directors or
officers and disqualify those found unfit.

7. D irectors of Merged or
C onsolidated Banks
S hall not exceed 21
8. C ompensation and O ther
Benefits of D irectors and
O fficers
Monetary Board may regulate
these payments by the bank to
protect the funds of depositors
and creditors

*only in exceptional cases and

when circumstances warrant
 9. P rohibition on P ublic
O fficials
To serve as officer of any private bank except
as otherwise provided in the R ural Banks Act
or where such service is incident to financial
assistance provided

20. Bank Branches

May open within or outside the P hilippines
upon prior approval of the BS P

*A bank and its branches and offices shall

be treated as one unit
 21. Banking D ays and H ours
Transact business on all working days for at least 6 hours a day

May open for business on S aturdays, S undays or holidays for at

least 3 hours a day provided that they shall report to BS P

22. S trikes and L ockouts

To be reported by BS P to the S ecretary of L abor
if unsettled after 7 calendar days
F oreign
Banks
72. Transacting Business in the P H
G overned by the F oreign Banks
L iberalization Act

73. Acquisition of Voting S tock in a

Domestic Bank
Within 7 yrs from the effectivity of this Act,
MB may authorize a foreign bank to acquire
up to 100% of the voting stock of only 1
domestic bank
74. L ocal Branches of F oreign
Banks
S hall be treated as one unit for
the purpose of this Act

75. H ead O ffice G uarantee

The prompt payment of all liabilities of its P hilippine branch

R esidents and citizens of the P hilippines who are creditors

of a branch in the P hilippines of a foreign bank shall have
preferential rights to the assets of such branch in accordance
with existing laws
78. R evocation of L icense of a
F oreign Bank
If insolvent or in imminent
danger thereof or that its
continuance in business will
involve probable loss