Section 2
SEC. 2. For purposes of this Decree, the following definitions of terms shall apply: The term “bank” means every banking institution as defined in Section 2 of the General Banking Act, Republic Act No. 337, as amended. A bank may either be a commercial bank, a thrift bank, a rural bank or a specialized government bank. The term “non-bank” financial intermediary” means financial intermediary as defined in Section 2-D(c) of the General Banking Act, Republic Act No. 337, as amended, authorized by the Central Bank of the Philippines to perform quasi-banking functions. The term “quasi-banking functions” means borrowing funds, for the borrower’s own account, through the issuance, endorsement or acceptance of debt instruments of any kind other than deposits, or through the issuance of participations, certificates of assignment, or similar instrument with recourse, trust certificated, or of repurchase agreements, from twenty or more lenders at any one time, for purposes of relending or purchasing of receivables and other similar obligations: Provided, however, That commercial, industrial, and other non-financial companies, which borrow funds through any of these means for the limited purpose of financing their own needs or the needs of their agents or dealers, shall not be considered as performing quasi-banking functions. The term “finance companies” refers to corporations or partnerships other than a bank, or insurance company primarily organized for the purpose of extending credit facilities to consumers and to industrial, commercial or agricultural enterprises whether by granting direct loans or by discounting or factoring commercial papers or accounts receivables for profit, buying and selling contracts, leases, chattel mortgages and other evidences of indebtedness arising out of one or more of the steps in the distribution and sale of commodities.