Section 20
SEC. 20. Section 106 of the same Act is hereby amended to read as follows: "SEC. 106. Reserve deficiencies.—Whenever the reserve position of any bank or non-bank financial intermediary performing quasi-banking functions, computed in the manner specified, in the preceding section of this Act, is below the required minimum, the bank or non-bank financial intermediary performing quasi-banking functions shall pay the Central Bank one-tenth of one per cent (1/10 of 1%) per day on the amount of the deficiency: Provided, however, That banks and non-bank financial intermediaries performing quasi-banking functions shall ordinarily be permitted to offset any reserve deficiency occurring on one or more days of the week with any excess reserves which they may hold on other days of the same week and shall be required to pay the penalty only on the average daily deficiency during the week. In cases of abuse, the Monetary Board may deny any bank or non-bank financial intermediary performing quasi-banking functions the privilege of offsetting reserve deficiencies in the aforesaid manner. "If a bank or non-bank financial intermediary performing quasi-banking functions chronically has a reserve deficiency, the Monetary Board may limit or prohibit the making of new loans or investments by the institution and may require that part or all of the net profits of the institution be assigned to surplus. "The Monetary Board may modify or set aside the reserve deficiency penalties provided in this section, for part or the entire period of a strike or lockout affecting a bank or a non-bank financial intermediary performing quasi-banking functions as defined in the Labor Code, or of a national emergency affecting operations of banks or non-banks financial intermediaries performing quasi-banking functions."