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2. BA-FM 24P(2018)-A (LEC) Banking and Financial Institution > Chapter 4: Other Financial Institutions > Flashcards

Chapter 4: Other Financial Institutions Flashcards

1
Q

Is a firm that provides funding or loans to individuals, enterprises, and other organizations.

A

Finance Companies

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2
Q

make a profit from the interest rates they charge on their loans, which are normally higher than the interest rates that banks charge their clients.

A

Finance Companies

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3
Q

It does not receive cash deposits from clients, nor does it provide some other services common to banks, such as checking accounts.

A

Finance Companies

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4
Q

the fees charged for the use of borrowed money

A

Interest rates

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5
Q

Regulates the Philippine securities sector, including financing business that issue securities or participate in other regulated activities.

A

Securities and Exchange Commission (SEC)

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6
Q

a rural bank in the Philippines that provides financing and banking services to rural communities, including loans, deposits, and remittance services.

A

One Network Bank (ONB)

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7
Q

a lending non-bank financial institutions in the Philippines, primarily known for its pawnshop service which also offers microfinance services.

A

Cebuana Lhullier Finance Corporation

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8
Q

a financing company that provides consumer and business loans in the Philippines.

A

Radiowealth Finance Company Inc.

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9
Q

It offers various loan products to meet the diverse financial needs of its clients.

A

Radiowealth Finance Company Inc.

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10
Q

Functions: (Financing Companies)

A
  • Provide loans with terms and help people afford big expenses.
  • Make investments in businesses by providing capital for expansion or new venture.
  • Provide assistance and support to help people in making good financial choices.
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11
Q

Benefits: (Financing Companies)

A
  • Individuals and businesses are allowed to acquire assets that can increase efficiency and productivity.
  • Borrowers could save on interest costs by obtaining a Loan with cheaper interest rates considering the financial conditions.
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12
Q

Products and Services Offering: (Financing Companies)

A
  1. Business Loans
  2. Consumer Loans
  3. Mortgage Loans
  4. Leasing Loans
  5. Factoring Services
  6. Investment Products
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13
Q

Challenges in Operations: (Financing Companies)

A
  • Must keep sufficient capital to find lending operations and control possible losses which can be difficult economic crises.
  • Interest rate fluctuations can affect financing companies’ profitability and asset-liability management.
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14
Q

Can a financing company lower its interest rate?

A

Yes

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15
Q
  • Assets on the warehouse but cannot be used.
A

Non Performing Loans

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16
Q

Not easy to dispose (due to processing)

A

Non Performing Loans

17
Q

Often known as Credit Unions.

A

COOPERATIVE

18
Q

A form of business organization that is owned and run by its members for their mutual advantage.

A

COOPERATIVE

19
Q

May offer its members banking and credit services, such as savings accounts, loans, and insurance.

A

COOPERATIVE

20
Q

Overseas fostering cooperative growth and ensuring that cooperative groups follow all applicable rules and regulations.

A

Cooperative Development Authority (CDA)

21
Q

Functions: (Cooperatives)

A
  • Through money pooling, coop. enables members to earn greater interest rates and gain savings faster.
  • Create job opportunities by starting businesses or projects that require workers.
  • Protect the rights and interest the members by pricing fairly, advocating for better regulations, and offering legal support when needed.
22
Q

Benefits: (Cooperatives)

A
  • Members have an equal vote in cooperative decisions, regardless of how much money they have invested.
  • Offer members the chance to acquire new skills, gain experience and assume leadership roles within the organization.
23
Q

Products and Services Offering: (Cooperatives)

A
  1. Saving and Credit Facilities
  2. Cooperative Loans
  3. Financial Education
  4. Training
  5. Insurance and Risk Management Services
24
Q

Challenges in Operations: (Cooperatives)

A
  • Must maintain financial viability, which calls for efficient resource management, income production, and cost minimization to enable continued —- and expansion.
  • It requires excellent leadership and management to make strategic decisions, provide transparency, accountability and represent members.
  • Often face challenges in raising funds for investment, development and meeting member’s financial signature.
25
Q

offers Savings Account & Time Deposits (SA & TD)

A

Cooperatives

26
Q

not authorized to offer Current Accounts (CA)

A

Cooperatives

27
Q

a microfinance-oriented cooperative in the Philippines that offers financial services, including savings and credit facilities, to micro-entrepreneurs and small business owners.

A

Alalay sa Kaunlaran, Inc. (ASKI)

28
Q

a well-established cooperative company in the Philippines, primarily serving the agricultural sector.

A

1st Valley Credit Cooperative (1VCC)

29
Q

a cooperative federation in the Philippines composed of thousands of cooperatives across various sectors that provides support to its member-cooperatives.

A

National Confederation of Cooperatives (NATCCO Network)

30
Q

Sometimes known as Thrift Institution

A

SAVINGS AND LOANS ASSOCIATION

31
Q

Is a financial institution that specializes in accepting savings deposits and providing mortgage loans to individuals and businesses.

A

SAVINGS AND LOANS ASSOCIATION

32
Q

Supervises and regulates all banks and non-banks financial institutions in the Philippines, including savings and loan organizations.

A

Bangko Sentral ng Pilipinas (BSP)

33
Q

Functions: (S&L Association)

A
  • Extend credit to members for various purposes which helps members access affordable financing to meet their financial needs.
  • Help people save money by providing a safe place to deposit their earnings and earn some extra money through interest.
  • Supports community projects like building houses and helps small businesses grow which creates jobs.
34
Q

Benefits: (S&L Association)

A
  • Members can borrow money from at reasonable rates without paying high interest rates fees.
  • By depositing money in SLAs, members can earn more investment on their savings compared to regular bank accounts.
  • Members have a say on how the SLA operates and can vote on important decisions.
35
Q

a government-owned and controlled corporation in the Philippines that provides affordable housing loans and other financial services to its members.

A

Pag-IBIG Fund or Home Development Mutual Fund (HDMF)

36
Q

a thrift bank owned by the ________________________ catering primarily to government employees and their families.

A

Government Service Insurance System (GSIS), Family Bank

37
Q

a thrift bank that provides banking services to retail and corporate clients in the Philippines.

A

Sterling Bank of Asia

38
Q

Products and Services Offering: (S&L Association)

A
  1. Saving Account
  2. Mortgage Loans
  3. Investment Products
  4. Insurance Products
  5. Personal Loans
39
Q

Challenges in Operations: Savings and Loan Associations

A
  • Requires management of various regulatory restrictions set by central banks and cooperative authorities in order to be legally compliant and avoid charges.
  • Competition from traditional banks, non-bank financial institutions, and expanding financial tech companies

Affected by macroeconomic variables including inflation and interest rates, requiring risk management techniques and adaptation

2. BA-FM 24P(2018)-A (LEC) Banking and Financial Institution (9 decks)

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