Ch3: bank classifications

Question 1

enumerate the CLASSIFICATION OF BANKS

Answer 1

(6) (GUCTRC)
1. Government Banks
2. Universal Banks
3. Commercial Banks
4. Thrift Banks
5. Rural Banks
6. Cooperative Banks

Question 2

The BSP monitors and compiles various indicators on the Philippine banking system. The PHILIPPINE BANKING SYSTEM is composed of?

Answer 2

1. Universal and Commercial banks,
2. Thrift banks,
3. Rural and Cooperative Banks

Question 3

examples of Government Banks?

Answer 3

1. Land Bank of the Philippines (LBP)
2. Development Bank of the Philippines (DBP)
3. Al-Amanah Islamic Investment Bank of the Philippines

Question 4

It is established as a corporate and government
instrumentality.

Answer 4

Land Bank of the Philippines

Question 5

Its main purpose is to help implement the land reform in the Philippines known as the (CARP).

• what is it?
• what does CARP mean?
• what is the limit in hectars?

Answer 5

• Land Bank of the Philippines
• COMPREHENSIVE AGRARIAN REFORM PROGRAM
• 5 hectares limit only, more than 5 hectares will go to the government

Question 6

It is the government counter-part of the private development banks. It aims to develop, expand, construct, and rehabilitate our ______________ industry.

Answer 6

Development Bank of the Philippines

• agricultural industry

Question 7

Primarily established to promote and accelerate the socio-economic development of the autonomous region of Mindanao.

Answer 7

Al-Amanah Islamic Investment Bank of the Philippines

Question 8

Represent the largest single group, resource-wise, of financial institutions in the country.

Answer 8

Universal and Commercial banks

Question 9

They offer the widest variety of banking services among financial institutions.

Answer 9

Universal and Commercial banks

Question 10

They are also authorized to engage in underwriting and other functions of investment houses, and to invest in equities of non-allied undertakings.

Answer 10

Universal and Commercial banks

Question 11

what are the proposed minimum capitalization of universal banks?

Answer 11

Head Office only = 3 billion
Up to 10 branches = 6 billion
11 to 100 branches = 15 billion
More than 100 branches =20 billion

Question 12

Examples of Universal banks?

Answer 12

• union bank
• metrobank
• BDO
• BPI
• eastwest
• Chinabank

Question 13

what are the proposed minimum capitalization of commercial banks?

Answer 13

Head Office only = 2 billion
Up to 10 branches = 4 billion
11 to 100 branches = 10 billion
More than 100 branches =15 billion

Question 14

Examples of Commercial banks?

Answer 14

• Bank of Commerce
• Philippine bank of communications
• Robinsons Bank
• veterans bank
• RCBC

Question 15

Thrift banks are composed of the ff?

Answer 15

(SPSM)
1. savings and mortgage banks,
2. private development banks,
3. stock savings and loan associations, and
4. microfinance thrift banks.

Question 16

Are engaged in accumulating savings of depositors and investing them.

Answer 16

Thrift banks

Question 17

They also provide short-term working capital and medium- and long-term financing to businesses engaged in agriculture, services, industry and housing, and diversified financial and allied services, and to their chosen markets and constituencies, especially small- and medium- enterprises and individuals.

Answer 17

Thrift banks

Question 18

what are the proposed minimum capitalization of thrift banks? (Head Office in National Capital Region)

Answer 18

Head Office in National Capital Region

Head Office only = 500 million
Up to 10 branches = 750 million
11 to 50 branches = 1 billion
More than 50 branches = 2 billion

Question 19

what are the proposed minimum capitalization of thrift banks? (Head Office in All Other Areas Outside National Capital Region)

Answer 19

Head Office in All Other Areas Outside National Capital Region

Head Office only = 200 million
Up to 10 branches = 300 million
11 to 50 branches = 400 million
More than 50 branches = 800 million

Question 20

Examples of thrift banks?

Answer 20

• Sterling Bank of Asia
• Postal Bank
• Philippine Savings Bank
• 1st Valley Bank
• City Savings Bank
• PRBank

Question 21

Are the more popular type of banks in the rural communities.

Answer 21

Rural and Cooperative Banks

Question 22

Their role is to promote and expand the rural economy in an orderly and effective manner by providing the people in the rural communities with basic financial services.

Answer 22

Rural and Cooperative Banks

Question 23

Help farmers through the stages of production, from buying seedlings to marketing of their produce.

Answer 23

Rural and Cooperative Banks

Question 24

Rural banks and cooperative banks are differentiated from each other by ownership. How?

Answer 24

Rural banks
- are privately owned and managed,

Cooperative banks
- are organized/owned by cooperatives or federation of cooperatives.

Question 25

Are organized to promote and expand the rural economy in an orderly and effective manner by providing farmers and small businessmen with means of facilitating and improving their productive facilities.

Answer 25

Rural Banks

Question 26

Are usually a family owned business.

Answer 26

Rural Banks

Question 27

true or false? In granting the loans, rural banks shall give preference to the applications of farmers and merchants whose cash requirements are small.

Answer 27

true

Question 28

Loans may be granted by rural banks on security of land without ___________________ where the owner of private properties can show ___ years or more of ______________, ________________, and _________________________________ of the property in the concept of ownership.

Answer 28

Loans may be granted by rural banks on security of land without ((Torrens Title)) where the owner of private properties can show ((5)) years or more of ((peaceful, continuous and uninterrupted possession)) of the property in the concept of ownership.

Question 29

enumerate the Services Performed by Rural Banks

Answer 29

(4) (ACCI) - Accept savings and time deposits - Can open current and checking accounts provided the rural banks must secure approval from BSP Monetary Board. - Can act as collection agent - In can act as official depository of municipal, city or provincial funds in the municipality; city or province where it is located to such guidelines as may be established by the MB.

Question 30

Examples of Rural banks and Cooperative Banks?

Answer 30

- Saviour Bank - Bank of Florida - Porac Bank - Rural Bank of Mexico - GRBank

Question 31

what are the proposed minimum capitalization of thrift banks? (Head Office in National Capital Region)

Answer 31

Head Office only = 50 million Up to 10 branches = 75 million 11 to 50 branches = 100 million More than 50 branches = 200 million

Question 32

what are the proposed minimum capitalization of thrift banks? (Head Office in All Other Areas Outside National Capital Region) (All Cities up to 3rd class municipalities)

Answer 32

Head Office only = 20 million Up to 10 branches = 30 million 11 to 50 branches = 40 million More than 50 branches = 80 million

Question 33

what are the proposed minimum capitalization of thrift banks? (Head Office in All Other Areas Outside National Capital Region) (4th class to 6th class municipalities)

Answer 33

Head Office only = 10 million Up to 10 branches = 15 million 11 to 50 branches = 20 million More than 50 branches = 40 million