GRANTING THE MONETARY AUTHORITY ADEQUATE PREROGATIVES IN THE MANAGEMENT OF THE COUNTRY’S BANKING AND CREDIT SYSTEM.

• Number: Presidential Decree No. 865-B
• Sections: 4

Preamble

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:

Section 1

SEC. 1.—Section 2-C of Republic Act No. 337, as

amended, is hereby further amended to read as follows:

Section 2

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

Section 2-C

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.