Module 1 - Overview about Banking & Financial Institutions Flashcards
BSP was established on…
July 3, 1993
The Bangko Sentral ng Pilipinas (BSP) is the…
Central Bank of the Republic of the Philippines
The BSP enjoys…
Fiscal and administrative autonomy from the National Government
Is designed to be an authoritative codification of regulations governing banks which are all under supervision of the Bangko Sentral ng Pilipinas
Manual of Regulations for Banks (MORB)
Manual of Regulations for Banks (morb)…
methodically and logically organizes the Bangko Sentral rules and policy issuances that implement the broader provision of the General Banking law of 2000
MORB provides the…
rules governing the operations of banks in the country and serves as a useful reference for an individual, institution or agency with an active interest in the Banking system
What are the functions of MORB
- Monetary operation
- Financial Supervisions
- Payments and System Oversight
- Loans and Credit Operations
- Economic Education
What does the MORB mandates?
- Systemic Risk Management
- Currency Managemen
• Inclusive Finance - Internal Economic Cooperation
What is the importance of bank?
- it takes deposits from individuals or businesses with the promise that the money can be withdrawn when the depositor wants it
- it also lends the money it has on deposit to other individuals and businesses
- it earns profit by receiving interest payments on loans or from the borrower.
What is the Vision of BSP?
BSP aims to be recognized globally as the monetary authority and primary financial system supervisor that supports a strong economy and promotes a high quality of life for all Filipinos
What is the Mission of BSP?
To promote and maintain
- Price stability
- Strong Financial System/Financial Stability
- Efficient settlement payments system
conducive to a sustainable and inclusive growth of the economy
What are the core values of BSP?
- Excellence
- Patriotism
- Integrity
- Solidarity
- Accountability
Two Major kinds of Banking Institutions
(1) Private Banking Institutions
(2) Government Banking Institutions
What are the two private banking institutions?
(1) Commercial banking
(2) Thrift Banks
What are under the Thrift banks?
- savings and mortgage
- savings and loan association
- private development banks
- rural banks
Are comprised of commercial banking such as universal banks and ordinary commercial banks, thrift banks like saving and mortgage banks, savings and loan association banks, private development banks, and the rural banks.
Private Banking Institutions
Consists of Philippine National Bank, Development Bank of the Philippines, and the Bank of the Philippines
Government Banking Institutions
These banks continue to account for the bulk of the expanded total resources of the banking industry
Commercial Banking Institutions
Are primarily engaged in mobilizing the small savings of the people.
They provide loans at reasonable interest rates.
They provide funds for agriculture and industry at reasonable interest rates.
They have motivated low income groups and school children to save their money in the bank.
Thrift banks
The primary function of this bank is to receive time deposits of different types and to invest its fund in long term investment.
It is organized primarily for the purpose of accumulating the small savings of depositors ans investing them
Savings and Mortgage Banks
Are lending and banking institutions specialized in offering residential mortgage loans and accepting savings deposits
Savings and Loan Association
It is classified as a development bank and may perform all othe rfunctions of a thrift bank.
Its primary objective is to provide banking services principally to cater to the medium and long term needs of agricultural and industrial enterprises with emphasis on small and medium scale industries
Private Development Banks
The role of the Philippine Government in the banking industry is…
To supplement the credit facilities of the private financial institutions.
What are the two classifications under Non-bank financial institutions?
(1) Government Non-Bank Financial Institutions
(2) Private Non-Bank Financial Institutions
