Contractual relationship between banks and their depositors

BANKS and BANKING

Take note, in the case decided by the Supreme Court in PNB vs Santos, GR. No. 208293, Dec. 10, 2014, it ruled that: "The contractual relationship between banks and their depositors is governed by the Civil Code provisions on simple loan."  Once a person makes a deposit of his or her money to the bank, he or she is considered to have lent the bank that money. The bank becomes his or her debtor, and he or she becomes the creditor of the bank, which is obligated to pay him or her on demand.