Bank Regulation A safe and stable financial system is a critical concern of the Bangko Sentral ng Pilipinas. . The goal is not only to protect savers, but to protect the integrity of the financial system itself. If it happened when you unable to access the money in your bank accounts because your checks were dishonored for payment and your debit cards were declined. This gives an idea of a failure of the banking system payments that may affect the whole financial system. Once every 12 months,the BSP examines the books and at such other times as the Monetary Board may deem expedient. An interval of at least 12 months is required between annual examinations. The BSP examiners are authorised to administer oaths to any director, officer or employee of any bank and to compel the presentation of all books, documents, papers or records necessary to ascertain the facts relative to the true condition of such bank . With Prior approval from the Monetary Board, the Philippine Deposit Insurance Corporation may examine banks to check if they are engaging in unsafe and unsound banking practices. No examination can be conducted by the PDIC within 12 months of the last examination date. To avoid overlapping of efforts, the PDIC examination considers the relevant reports and findings of the BSP pertaining to the bank under examination. The Bangko Sentral ng Pilipinas has increased the single borrowers limit (SBL) to 30% . Single borrowers limit , is the maximum amount of loans banks can extend to any person or entity. BSP has posted the New Reserve Requirement for banks depending on its classification. Universal and Commercial Banks 12%, Thrift Banks 4%, Rural Banks and Cooperative Banks 3%. Banks are required to strictly adhere to the provisions of R.A. No. 3765, otherwise known as the Truth in Lending Act, and shall make the true and effective cost of borrowing an integral part of every loan contract. This shall apply to all banks engaged in any types of credit transactions. Bank regulation is intended to maintain banks solvency by avoiding excessive risk. Regulation falls into a number of categories, including reserve requirements, capital requirements, and restrictions on the types of investments banks may make. Banks need these regulation for a smooth performance in the 18 banking system. We learned that banks are required to hold a minimum percentage of their deposits on hand as reserves which varies to the type of banks they belong to cover desired withdrawals by depositors. ''On hand' is a bit of a misnomer because, while a portion of bank reserves are held as cash in the bank, the majority are held in the banks account at the BSP..

Is there any one of the banking regulation not necessary or all of them are necessary ? Give me your analysis on these regulations.