Section 1
SECTION 1. Section 20 of the National Internal Revenue Code is hereby amended by adding the following definitions as follows: “SEC. 20 (v) The term “bank” means every banking institution as defined in Section 2 of the General Banking Act, Republic Act 337, as amended. A bank may either be a commercial bank, a thrift bank, a development bank, a rural bank or a specialized government bank. (w) The term “non-bank financial intermediary” means financial intermediary as defined in Section 2-D(c) of the General Banking Act R.A. No. 337, as amended, authorized by the Central Bank of the Philippines to perform quasi-banking activities. (x) The term “quasi-baking activities” means borrowing funds from twenty or more personal or corporate lenders at any one time, through the issuance, endorsement or acceptance of debt instrument of any kind other than deposits for the borrower’s own accounts, or through the issuance certificates of assignment or similar instruments, with recourse, or of repurchase agreements for purposes of relending or purchasing receivable 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.”