General Banking Act 1948

Republic Act No.
337
REPUBLIC ACT NO. 337 – AN ACT REGULATING BANKS AND BANKING INSTITUTIONS
AND FOR OTHER PURPOSES
CHAPTER I
Title and Definitions
Sec. 1. The short title of this Act shall be The “General Banking Act.“
Sec. 2. Only duly authorized persons and entities may engage in the lending of funds obtained
from the public through the receipt of deposits or the sale of bonds, securities, or obligations of
any kind, and all entities regularly conducting such operations shall be considered as banking
institutions and shall be subject to the provisions of this Act, of the Central Bank Act, and of
other pertinent laws. The terms “banking institution” and “bank,” as used in this Act, are
synonymous and interchangeable and specifically include banks, banking institutions,
commercial banks, savings banks, mortgage banks, trust companies, building and loan
associations, branches and agencies in the Philippines of foreign banks, hereinafter called
Philippine branches, and all other corporations, companies, partnerships, and associations
performing banking functions in the Philippines.
Persons and entities which receive deposits only occasionally shall not be considered as banks,
but such persons and entities shall be subject to regulation by the Monetary Board of the Central
Bank; nevertheless, in no case may the Central Bank authorize the drawing of checks against
deposits not maintained in banks, or branches or agencies thereof.
The Monetary Board may similarly regulate the activities of persons and entities which act as
agents of banks.
Sec. 3. Insurance companies are exempted from the provisions of this Act, but such companies
shall present to the Central Bank such information, data or reports as the Monetary Board may
require in order to ascertain the effects of the operations of insurance companies on the
monetary, credit, and exchange situation in the Philippines.
Sec. 4. Cases of doubt as to the banking character of the activities of any person or entity, and to
the consequent applicability of this Act, shall be decided by the Monetary Board subject to
judicial review. The Board may, through the Superintendent of Banks, examine, inspect or
investigate the books and records of such person or entity for the purpose of resolving the
question.
Sec. 5. The following terms shall be held to be synonymous and interchangeable:
a) “Commercial bank” and “commercial banking corporation;

b) “Savings bank,” “mortgage bank,” and “savings and mortgage bank”;
c) “Building and loan association” and mutual “building and loan association”;
d) “Trust company” and “trust corporation”; and
e) “Foreign bank” and “foreign banking corporation.”
Sec. 6. No person, association or corporation not conducting the business of a commercial

banking corporation, trust corporation, savings and mortgage bank, or building and loan
association, as defined in this Act, shall advertise or hold itself out as being engaged in the
business of such bank, corporation or association, or use in connection with its business title the
word or words “bank,” “banking,” “banker,” “building and loan association,” “trust corporation,”
“trust company,” or words of similar import, or solicit or receive deposits of money for deposit,
disbursement, safekeeping, or otherwise, or transact in any manner the business of any such
bank, corporation or association, without having first complied with the provisions of this Act in
so far as it relates to commercial banking corporations, trust corporations, savings and mortgage
banks, or building and loan associations, as the case may be. For any violation of the provisions
of this section by a corporation, the officers and directors thereof shall be jointly and severally
liable. Any violation of the provisions of this section shall be punished by a fine of five hundred
pesos for each day during which such violation is continued or repeated, and in default of the
payment thereof, subsidiary imprisonment as prescribed by law.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
CHAPTER II
Establishment of Domestic Banks
Sec. 7. Domestic banking institutions, except building and loan associations, shall be organized
in the form of stock corporations.
Sec. 8. No banking institution shall issue no par value stock.
Sec. 9. The Securities and Exchange Commissioner shall not register the articles of
incorporation of any bank, or any amendment thereto, unless accompanied by a certificate
of authority issued by the Monetary Board, under its official seal. Such certificate shall not
be issued unless the Monetary Board is satisfied from the evidence submitted to it: (a) that
all the requirements of existing laws and regulations to engage in the business for which the
applicant is proposed to be incorporated have been complied with; (b) that the public
interest and economic conditions, both general and local, justify the authorization; and (c)
that the amount of capital, the financing organization, direction and administration, as well
as the integrity and responsibility of the organizers and administrators reasonably assure
the safety of the interests which the public may entrust to them.
Sec. 10. The Securities and Exchange Commissioner shall not register the by-laws of any
bank or banking institution, or any amendment thereto, unless accompanied by a
certificate of the Monetary Board to the effect that such by-laws or amendment thereto are
in accordance with law.
Sec. 11. After the approval of this Act, no bank which may be established and licensed to do
business in the Philippines shall receive deposits, unless incorporated under the laws of the
Republic of the Philippines: Provided, however, That this prohibition shall not apply to branches
and agencies of foreign banks which, at the time of the approval of this Act, are actually
receiving deposits: And provided, further, That, after the passage of this Act, all deposits so
received by such branches and agencies of foreign bank shall not be invested in any manner
outside the territorial limits of the Republic of the Philippines.
Sec. 12. At least sixty per cent (60%) of the capital stock of any banking institution which may
be established after the approval of this Act shall be owned by citizens of the Philippines.
Sec. 13. At least two-thirds of the members of the board of directors of any bank or banking
institution which may be established after the approval of this Act shall be citizens of the
Philippines.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
CHAPTER X
Final Provisions
Sec. 88. All authority now vested in the Bank Commissioner and the Bureau of Banking with
respect to the establishment, operation or liquidation of banking and credit institutions, and
branches or agencies thereof, are hereby transferred to the Central Bank.
Sec. 89. All authority now vested in the Secretary of Finance with respect to the establishment,
operation or liquidation of banking and credit institutions, or branches or agencies thereof, shall
be transferred to, and exercised by the Monetary Board of the Central Bank.
Sec. 90. Sections one hundred seventy-five to one hundred eighty-three and one hundred ninety-
nine to two hundred seventeen of the Code of Commerce, as amended; sections one hundred
three to one hundred forty-six and one hundred seventy-one to one hundred ninety of Act
Numbered Fourteen hundred and fifty-nine, as amended; Acts Numbered Thirty-one hundred
and fifty-four and Thirty-five hundred and twenty, and all laws or parts thereof, including those
parts of special charters of the Philippine National Bank and of other banking institutions in the
Philippines which are inconsistent herewith, are hereby repealed.
Sec. 91. This Act shall take effect on the same day that the Central Bank commences operation.
Approved: July 24, 1948

General Banking Act 1948

Uploaded by

Copyright:

Available Formats

General Banking Act 1948

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

General Banking Act 1948

Uploaded by

Copyright:

Available Formats

Republic Act No.

Sec. 5. The following terms shall be held to be synonymous and interchangeable:

a) “Commercial bank” and “commercial banking corporation;

d) “Trust company” and “trust corporation”; and

e) “Foreign bank” and “foreign banking corporation.”

Sec. 6. No person, association or corporation not conducting the business of a commercial

Sec. 8. No banking institution shall issue no par value stock.

Approved: July 24, 1948

You might also like