1. Discuss the 4 (four) requisites in disclosing information of bank deposits or known
as Secrecy of Bank Deposits or R.A. 1405. (5 pts. each)
The 4 requisites in disclosing information of bank deposits or known as
Secrecy of Bank Deposits or R.A. 1405 are: (1) upon written permission of the
depositor. This simply means that the information of deposits of individuals can be
examined, inquired or looked into by any person, agency or office, or government
official IF the depositor willingly allowed them in a form of a written permission; (2) in
case of impeachment. Any person, agency or office, or government official has the
power to examine, investigate or look into the information of bank deposits of an
individual with a crime or misdemeanor. This action is allowed to evaluate their
integrity and the validity of their action; (3) upon order of a competent court in cases of
bribery or dereliction of duty. The court has the power to examine, investigate or look
into the bank accounts of an individual who are accused of corruption, inducement,
dishonesty or negligence. This is usually done to suspected politicians or government
officials. An example of this is the investigation done with Janet Lim-Napoles’ case
back in 2013 that was tagged in masterminding the pork barrel scam for at least 10
years, using a network of bogus nongovernment organizations; and/or, (4) in cases
where the money deposited or invested is the subject matter of the litigation. This means
that a confidentiality of bank accounts/deposits can be disregard intentionally when/if
settled by parties or decided by a jury or judge in the court. Example, the approved
beneficiaries who want to take their portion from the bank account of a deceased
depositor can look into the whole bank account information through the help of the
court.
2. Discuss the importance or objectives of R.A. 3765 to creditor and debtor. (10 pts. each) R.A.
3765 or known as the “Truth in Lending Act” protects both creditors and debtors. With this
act, creditors are provided with loan cost information as well as information about the costs
of their credit to avoid wrong and unfair credit billing and credit card practices. For debtors
or issuers, this act will help them be aware of their rights as borrowers, be well-informed
and so to check and avoid any defilements and violations.
3. Discuss the objectives of PDIC in relation to bank operations in the country today. (10 pts.)
The Philippine Deposit Insurance Corporation (PDIC) is consistent with its
public policy objectives to “promote and safeguard the interests of the depositing public
by way of providing permanent and continuing insurance coverage on all insured
deposits” and “to strengthen the mandatory deposit insurance coverage system to
generate, preserve, and maintain faith and confidence in the country’s banking system,
and protect it from illegal schemes and machinations.” These objectives of PDIC ensure
that Filipinos can trust and depend with any depository institutions of the country
especially in today’s crisis. The PDIC also mandates the Deposit Insurance Fund which
is primarily through assessments of member-banks at an annual flat rate of 105 of 1%
of their deposit. The corporation also works with the Bangko Sentral ng Pilipinas (BSP)
to help supervise all banking institutions with their stability in the banking system.
Thus, the PDIC can conduct bank examinations and investigations to assess financial
safety and soundness of banks for the benefit of the clients/depositors. Another, the
as Secrecy of Bank Deposits or R.A. 1405. (5 pts. each)
The 4 requisites in disclosing information of bank deposits or known as
Secrecy of Bank Deposits or R.A. 1405 are: (1) upon written permission of the
depositor. This simply means that the information of deposits of individuals can be
examined, inquired or looked into by any person, agency or office, or government
official IF the depositor willingly allowed them in a form of a written permission; (2) in
case of impeachment. Any person, agency or office, or government official has the
power to examine, investigate or look into the information of bank deposits of an
individual with a crime or misdemeanor. This action is allowed to evaluate their
integrity and the validity of their action; (3) upon order of a competent court in cases of
bribery or dereliction of duty. The court has the power to examine, investigate or look
into the bank accounts of an individual who are accused of corruption, inducement,
dishonesty or negligence. This is usually done to suspected politicians or government
officials. An example of this is the investigation done with Janet Lim-Napoles’ case
back in 2013 that was tagged in masterminding the pork barrel scam for at least 10
years, using a network of bogus nongovernment organizations; and/or, (4) in cases
where the money deposited or invested is the subject matter of the litigation. This means
that a confidentiality of bank accounts/deposits can be disregard intentionally when/if
settled by parties or decided by a jury or judge in the court. Example, the approved
beneficiaries who want to take their portion from the bank account of a deceased
depositor can look into the whole bank account information through the help of the
court.
2. Discuss the importance or objectives of R.A. 3765 to creditor and debtor. (10 pts. each) R.A.
3765 or known as the “Truth in Lending Act” protects both creditors and debtors. With this
act, creditors are provided with loan cost information as well as information about the costs
of their credit to avoid wrong and unfair credit billing and credit card practices. For debtors
or issuers, this act will help them be aware of their rights as borrowers, be well-informed
and so to check and avoid any defilements and violations.
3. Discuss the objectives of PDIC in relation to bank operations in the country today. (10 pts.)
The Philippine Deposit Insurance Corporation (PDIC) is consistent with its
public policy objectives to “promote and safeguard the interests of the depositing public
by way of providing permanent and continuing insurance coverage on all insured
deposits” and “to strengthen the mandatory deposit insurance coverage system to
generate, preserve, and maintain faith and confidence in the country’s banking system,
and protect it from illegal schemes and machinations.” These objectives of PDIC ensure
that Filipinos can trust and depend with any depository institutions of the country
especially in today’s crisis. The PDIC also mandates the Deposit Insurance Fund which
is primarily through assessments of member-banks at an annual flat rate of 105 of 1%
of their deposit. The corporation also works with the Bangko Sentral ng Pilipinas (BSP)
to help supervise all banking institutions with their stability in the banking system.
Thus, the PDIC can conduct bank examinations and investigations to assess financial
safety and soundness of banks for the benefit of the clients/depositors. Another, the
