Identification

BSYUSDIAR ERONTIAPRO NRCCREYU CLAETRN KABN

AEEGNHCX RTEA IALIFAEFT INNFALIOT ADQLUIIOITN

REGNITNUOCIDS

RIHSECEREVIP CERUSOL CIHSROTAVRSEONP

____________1. The price of a unit of foreign currency in terms of domestic currency.

____________2. A Corporation the voting stock of which, to the extent of 50% or less, is owned by a bank or
quasi-bank or which is related or linked to such institution or intermediary through
common stockholders or such institution or intermediary through common
stockholders or such other factors.

____________3. Is a bank that holds the cash reserves of a countrys commercial banks, performs monetary
services for the government, issues bank notes, and makes funds available to
commercial banks.

____________4. A Corporation more than 50% of the voting stock of which is owned by a bank or quasi-bank.

____________5. Shall take place is the receiver determines that the institution cannot be rehabilitated or
permitted to resume business.

____________6. Is a privilege of a qualified bank to obtain loans or advances from the Bangko Sentral ng
Pilipinas (BSP) using the eligible papers of its borrowers as collaterals.

____________7. Sustained increase in the general level of prices for goods and services.

____________8. Meaning all Philippine notes and coins issued or circulating in accordance with the
provisions of this Act.

____________9. Takes place whenever a bank or quasi-bank is in a state of continuing inability or

unwillingness to maintain a condition of liquidity deemed adequate to protect the interest of
depositors and creditors.

____________10. Is equivalent to an injunction to restrain in the bank officers from intermeddling with the
property of the bank in anyway. Thus, the appointment of a receiver operates to
suspend the authority of the bank and of its directors and officers over its property and
effects.
 Matrix/ Chart
A. Fill in the chart with the correct process of Receivership and Liquidation. Just write the number and
the words emphasized.
1. If the receiver determines that the
institution cannot be rehabilitated
or permitted to resume business in
accordance with the next preceding
paragraph, the Monetary Board shall
notify in writing the board of directors
of its findings and direct the receiver to
proceed with the liquidation of the
institution.
3. Designate PDIC as receiver for
banking institutions
5. File ex parte with the RTC and without
requirement of prior notice or any other
action, a petition for assistance in
the liquidation of the institution
pursuant to a liquidation plan adopted
by the Philippine Deposit Insurance
Corporation for general application to
all closed banks. In case of quasi-banks,
the liquidation plan shall be adopted by
the Monetary Board.
7. the Monetary Board may
summarily and without need for prior
hearing forbid the institution from
doing business in the Philippines
9. The receiver shall immediately
gather and take charge of all the
assets and liabilities of the
institution, administer the same for
the benefit of its creditors, and exercise
the general powers
of a receiver.
2. The receiver shall determine as
soon as possible, but not later than
ninety (90) days from take-over,
whether the institution may be
rehabilitated or otherwise placed in
such a condition so that it may be
permitted to resume business with
safety to its depositors and creditors
and the general public.
4. Rehabilitation
6. Upon motion by the receiver after due
notice, adjudicate disputed claims
against the institution, assist the
enforcement of individual liabilities of
the stockholders, directors and officers,
and decide on other issues as may be
material to implement the liquidation
plan adopted.
8. For quasi- banks: designate any
person of recognized competence in
banking or finance may be appointed
as receiver.
10. Convert assets of institution to
money, dispose of the same to
creditors and other parties, for the
purpose of paying the debts of such
institutions following the rules of Civil
Code on concurrence and preference of
credit.
 PROCESS FOR RECEIVERSHIP AND LIQUIDATION

The receiver shall:

Institute such actions as may be necessary to collect and recover accounts and assets of, or defe
 MODIFIED TRUE OR FALSE

Instructions: Write TRUE or FALSE. If your answer is false encircle the underlined phase/s that makes it
false.

___________ 1. General Rule: A restraining order may be issued by court enjoining the BSP from examining
any institution subject to the supervision or examination by BSP unless there is convincing proof that the
action of the BSP is plainly arbitrary and made in bad faith.

___________2. The Bangko Sentral may acquire and hold such assets and incur such liabilities in connection
with its operations authorized by the provisions of this Act, or as are essential to the proper conduct of
such operations.

___________3. Bangko Sentral shall have the authority to request from government offices and
instrumentalities or GOCCs, any data which it may require for the proper discharge of its functions and
responsibilities.

___________4. No person shall be a member of the Monetary Board if he has been connected directly with
any multilateral banking or financial institution or has a substantial interest in any private bank in the
Philippines, within six months (6 months) prior to his appointment;

___________5. The Monetary Board shall meet at least once a week. The Board may be called to a meeting
by the Governor of the Bangko Sentral or by two (2) other members of the Board.

For the next items just simply write True or False.

1. The purpose of receivership is to restore viability of the bank. _________

2. Conservatorship is a tool of the BSP with the purpose of restoring a banks viability. ____________
3. All expenses incurred in the printing of notes and the minting of coins shall be for the account of the
Bangko Sentral. _________
4. BSP may order closure of bank without prior notice and hearing and its legal effect would be a
violation of due process. _________
5. The bank does not necessarily have to undergo conservatorship. ___________
6. BSP is known as the lender of last resort. __________
7. Either the majority stockholders of the banks can file a petition for judicial review OR the directors.
_____________