Professional Documents
Culture Documents
FOR
QUIZ
–
JULY
29
o Subject
to
the
principles
and
rulings
of
Islamic
Shari’a
• Others
banks:
Q:
What
is
the
preamble
in
GBL
[2000]
o Philippine
Veterans-‐
provide
government
depository
to
veterans
for
appreciation
A:
SECTION
2.
Declaration
of
Policy.
—
The
State
recognizes
the
vital
role
of
banks
in
providing
an
of
grateful
nation
(RA
3518)
environment
conducive
to
the
sustained
development
of
the
national
economy
and
the
fiduciary
o Land
bank
of
the
Philippines
–
finance
distribution
of
estate
to
resale
to
small
nature
of
banking
that
requires
high
standards
of
integrity
and
performance.
In
furtherance
thereof,
landholders
(RA
3844)
the
State
shall
promote
and
maintain
a
stable
and
efficient
banking
and
financial
system
that
is
o Development
Bank
of
Philippines
–
provide
credit
facilities
for
development
in
globally
competitive,
dynamic
and
responsive
to
the
demands
of
a
developing
economy
agriculture,
commerce
and
industry
•
DBP
was
previously
named
as
Rehabilitation
Finance
Corporation
(RFC)
Q:
What
are
the
financial
allies
of
the
banks?
o Non-‐stock
savings
and
loan
associations
–
non-‐
stock,
non-‐profit
corporation
A:
Following
are
financial
allied
enterprises:
engage
in
accumulation
of
savings
of
its
members
and
loans
to
meet
its
members’
1. Leasing
companies
needs
•
Confines
exclusive
membership
and
cannot
transact
business
with
the
2. Banks
general
public
3. Investment
houses
• Quasi-‐banks
–
engaged
in
borrowing
of
funds
through
issuance
of
deposit
substitute
for
4. Financing
companies
purpose
of
relending
or
purchasing
receivables
and
other
obligations
5. Credit
card
companies
• Offshore
Banks
–
deals
with
transaction
with
foreign
currencies
in
receiving
funds
from
6. Financial
institutions
external
sources
and
utilization
of
such
7. Companies
in
stock
brokerage
and
foreign
exchange
dealership
o Governed
by
PD
1034
8. Insurance
companies
9. Holding
company
provided
that
the
equities
of
the
entity
is
confined
under
universal
bank
Q:
Provide
for
Section
4:
Supervisory
and
Regulatory
Powers
of
the
BSP
BSP
regulation
A:
SECTION
4.
Supervisory
Powers.
—
The
operations
and
activities
of
banks
shall
be
subject
to
supervision
of
the
Bangko
Sentral.
"Supervision"
shall
include
the
following:
Q:
What
are
the
classes
of
banks
4.1.
The
issuance
of
rules
of
conduct
or
the
establishment
of
standards
of
operation
for
A:
Classification
of
Banks
(CUT-‐RICO-‐NQU)
uniform
application
to
all
institutions
or
functions
covered,
taking
into
consideration
• Universal
Banks
–
large
commercial
banks
that
can
do
both
commercial
and
investment
the
distinctive
character
of
the
operations
of
institutions
and
the
substantive
banking
similarities
of
specific
functions
to
which
such
rules,
modes
or
standards
are
to
be
o They
have
the
power
of
both
commercial
bank
and
investment
house
applied;
o Have
the
power
to
invest
in
non-‐allied
enterprises
4.2.
The
conduct
of
examination
to
determine
compliance
with
laws
and
regulations
if
• Commercial
banks
–
general
powers
incident
of
corporation
and
can
perform
commercial
the
circumstances
so
warrant
as
determined
by
the
Monetary
Board;
banking
4.3.
Overseeing
to
ascertain
that
laws
and
regulations
are
complied
with;
o Does
not
have
the
power
to
invest
in
non-‐
allied
enterprises
4.4.
Regular
investigation
which
shall
not
be
oftener
than
once
a
year
from
the
last
date
• Rural
banks
–
banks
that
promote
rural
development
of
examination
to
determine
whether
an
institution
is
conducting
its
business
on
a
o They
can
extend
loan
or
advances
to
primarily
meet
the
normal
credit
needs
of
safe
or
sound
basis:
Provided,
That
the
deficiencies/irregularities
found
by
or
farmers,
fishermen
and
their
families
discovered
by
an
audit
shall
be
immediately
addressed;
o Can
also
deposit
in
private
banks
more
than
the
amount
prescribed
by
Single
4.5.
Inquiring
into
the
solvency
and
liquidity
of
the
institution
(2-‐D);
or
Borrower’s
Limit
in
case
there
are
no
government
banks
4.6.
Enforcing
prompt
corrective
action.
(n)
o Rural
Banks
Act
(RA
7353)
• Thrift
banks
–
encourages
the
industry,
frugality
and
accumulation
of
savings
of
the
public
The
Bangko
Sentral
shall
also
have
supervision
over
the
operations
of
and
exercise
regulatory
o To
make
it
within
easy
reach
to
the
people
the
credit
facilities
at
reasonable
cost
powers
over
quasi-‐banks,
trust
entities
and
other
financial
institutions
which
under
special
laws
o Includes:
(1)
savings
and
mortgage
bank,
(2)
stock
savings
and
loan
associations
are
subject
to
Bangko
Sentral
supervision.
(2-‐Ca)
and
(3)
private
development
banks
For
the
purposes
of
this
Act,
"quasi-‐banks"
shall
refer
to
entities
engaged
in
the
borrowing
of
o Thrift
Banks
Act
(RA
7906)
funds
through
the
issuance,
endorsement
or
assignment
with
recourse
or
acceptance
of
deposit
• Cooperative
banks
–
organized
by
cooperatives
to
provide
financial
and
credit
services
to
substitutes
as
defined
in
Section
95
of
Republic
Act
No.
7653
(hereafter
the
"New
Central
Bank
cooperatives
Act")
for
purposes
of
relending
or
purchasing
of
receivables
and
other
obligations.
o Cooperative
Code
(RA
6938)
o Membership
of
a
cooperative
bank
shall
include
ONL
Y
cooperative
and
Q:
What
is
the
Function
of
the
Monetary
Board
federations
of
cooperatives
A:
The
Bangko
Sentral
shall
provide
policy
direction
in
the
areas
of
money,
banking
and
credit.
(n)
• Islamic
Banks
–
promote
socio-‐economic
development
in
autonomous
region
by
For
this
purpose,
the
Monetary
Board
may
prescribe
ratios,
ceilings,
limitations,
or
other
forms
of
performing
banking
and
investment
function
based
on
Islamic
concept
of
banking
regulation
on
the
different
types
of
accounts
and
practices
of
banks
and
quasi-‐banks
which
shall,
to
o Islamic
Bank
–
RA
6848
the
extent
feasible,
conform
to
internationally
accepted
standards,
including
those
of
the
Bank
for