Practice question
A firm accepts deposit funds for lending and publicly calls itself a bank, but argues ordinary SEC incorporation alone is enough to begin banking operations. Which is correct under section 6?
- Any SEC certificate is sufficient banking authority
- Banking operations require BSP authority; the label and ordinary incorporation alone do not provide it
- Only the firm’s accountant decides
- Deposits eliminate regulatory requirements
- BSP authority is needed only after the first loss
Legal references
- https://lawphil.net/statutes/repacts/ra2000/ra_8791_2000.html — RA 8791, sections 3 and 6
- https://www.bsp.gov.ph/Regulations/Issuances/2020/c1105.pdf — BSP Circular 1105 (2020), digital-bank classification
Answer this question in flashcards to review your response and continue practicing.