It is
well-settled in both law and jurisprudence that the Central Monetary Authority,
through the Monetary Board, is vested with exclusive authority to assess,
evaluate and determine the condition of any bank, and finding such condition to
be one of insolvency, or that its continuance in business would involve a
probable loss to its depositors or creditors, forbid bank or non-bank financial
institution to do business in the Philippines; and shall designate an official
of the BSP or other competent person as receiver to immediately take charge of
its assets and liabilities.
In Central Bank
of the Philippines v. De la Cruz, we held that the actions of the Monetary
Board in proceedings on insolvency are explicitly declared by law to be
"final and executory." They may not be set aside, or restrained, or
enjoined by the courts, except upon "convincing proof that the action is
plainly arbitrary and made in bad faith.
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