Presidential Decree No. 865-B — Granting the Monetary Authority Adequate Prerogatives in the Management of the Country’s Banking and Credit System.
WHEREAS, it is essential to grant the monetary authority
adequate prerogatives in the management of the country’s banking and
credit system in the interest of orderly and sustained economic growth;
WHEREAS, while the Monetary Board of the Central Bank
already has the authority under existing law to prescribe interest rate
ceilings on the lending operations of banks and non-bank financial
intermediaries, it is deemed appropriate to invest it with express
authority to also prescribe ceilings on the financial yield from the
purchase of receivable or other obligations by the said institutions in
the course of their quasi-banking functions;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution,
do hereby decree and order to be part of the laws of the land the
following:
SEC. 1.—Section 2-C of Republic Act No. 337, as
amended, is hereby further amended to read as follows:
SEC. 2. This Decree shall take effect immediately.
Done in the City of Manila, this 31st day of December, in the year of
Our Lord, nineteen hundred and seventy-five.
(Sgd.)
FERDINAND E. MARCOS
President
Republic of the Philippines
By the President:
(Sgd.)
JACOBO C. CLAVE
Presidential Executive Assistant
SEC. 2-C. The Monetary Board may, at its discretion,
prescribe control ratios, ceilings, limitations, or other forms of
regulation on the different types of [contingent] accounts of banking
institutions and non-bank financial intermediaries performing
quasi-banking functions; as well as prescribe ceilings on yields from
the purchase of receivables or other obligations by such banking
institutions and non-bank financial intermediaries, or exempt particular
categories of transactions from such ceilings.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
