Practice question
A business argues that only traditional deposit-taking banks can ever fall within the BSP's statutory regulatory and examination mandate. The Monetary Board identifies a money service business within its amended section 3 authority. The business challenges that authority solely because it is not a bank. Which response is best?
- The absence of deposits necessarily eliminates all BSP authority.
- The BSP may regulate every unrelated activity without any statutory limit.
- Only a private association may authorize money services.
- Amended section 3 includes the specified regulatory and examination powers over money service businesses as determined by the Monetary Board; nonbank status alone does not defeat that authority.
- The business automatically becomes a Cabinet department.
Legal references
- New Central Bank Act, RA 7653, sections 6, 14–15, https://lawphil.net/statutes/repacts/ra1993/ra_7653_1993.html
- RA 11211, sections 2–3 amending New Central Bank Act sections 3 and 11, https://lawphil.net/statutes/repacts/ra2019/ra_11211_2019.html
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