Group 4: Classification of Banks Flashcards
(35 cards)
It is an institution authorized by a government to accept deposits, pay interest, clear checks, make loans, act as an intermediary in financial transactions, and provide other financial services to its customers.
Bank
PRIMARY ROLE
take in funds—called deposits—from those with money, pool them, and lend them to those who need funds
FUNCTIONS
- Accepting Deposits
- Granting Loans & Advances
- Payment & Settlement Systems
- Providing Financial services & advices
A government
agency task to protect depositors through the insurance on deposit which will be paid in the event of a bank closure.
PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC)
PDIC provides a maximum deposit insurance coverage of ______________ per depositor per bank
PhP500,000
Bank products covered by deposit insurance:
- Savings Account
- Current Account
- Special Savings Account - Time Deposit
True or False
BSP aims to maintain price stability by adjusting the RRP. If inflation is high, BSP raises the RRP to curb borrowing and spending, thus reducing demand pressure. Inversely, when inflation is low, the BSP lowers the RRP to encourage borrowing and spending, stimulating economic growth.
True
are bank products meant for saving, where customers place their money with a bank for an indefinite period of time in exchange for the delivery of their deposited amount plus the agreed interest at the end of that term.
Deposit
ADVANTAGES
- Safety of Public Wealth - Availability of Cheap
- Loans Propellant of Economy
- Development in Rural Areas
- Global Reach
DISADVANTAGES
- Chances of Bank Going Bankrupt
- Risk of Fraud
-Robberies Risk of Public Debt
Customers of a bank or other financial institution withdraw their deposits at the same time over fears about the bank’s solvency.
Bankrun
A legal proceeding initiated when a person or business cannot repay outstanding debts or obligations
Bankruptcy
Classification of Banks
- Universal Bank
- Commercial Bank
- Thrift Bank
- Rural Bank
- Cooperative Bank
- Islamic Bank
expanded commercial banks. A ___________ has the same powers as a commercial bank with the following additional powers: the powers of an investment house as provided in existing laws and the power to invest in non-allied enterprises.
universal bank
Required Capitalization of Universal Bank
P4.95B
are a type of financial institutions that operates services related to withdrawals, deposit of money, issuing loans and other business activities for everyday banking needs.
Commercial Banks
They have the power to accept drafts and issue letters of credit, discount and negotiate promissory notes
Commercial Banks
Required Capitalization of commercial banks
P2.4 B
has the power to accept savings and time deposits, act as a correspondent with other financial institutions and as a collection agent for government entities, issue mortgages, engage in real estate transactions and extend credit.
Thrift Bank
Required Capitalization of Thrift Bank:
P325 M
It is a financial institution specifically designed to serve the needs of rural communities. They are typically smaller than commercial banks and often have a more localized focus.
Rural Banks
These banks play a crucial role in providing financial services to farmers, fishermen, small businesses, and other individuals and organizations in rural areas.
Rural Banks
Required Capitalization of Rural Bank
P100 M
Owned and controlled by its members, who are typically individuals or organizations with a common interest.
Cooperative Bank
