02 Flashcards
in 2000 bc, early banking practices started in
babylon
what kind of transactions engaged evidence by tablets of clay
credit transactions
credit transactions engaged evidence by tablets of what
clay
credit transactions engaged evidence by tablets of clay, what year
2000 bc
temples
4th century bc
4th century bc
- temples
- private bodies and public firms deal in deposits and lending of funds
private bodies and public firms deal in deposits and lending of funds
4th century bc
Transactions were registered by public notaries
2nd century ad
2nd century ad
Transactions were registered by public notaries
8th century
bank drafts and checks were in wide use in Assyria.
in 5th century, what kind of drafts and checks were in wide use in assyria
bank drafts and checks
in 5th century, where were bank drafts and checks in wide use
Assyria
16th century
- ruled by Fugger Family
- John’s Laws financial system almost spelled ruin to France
who is the german family that ruled 16th century
Fugger Family
what financial system almost spelled ruin to France
John’s Laws financial system
first financial institution that was organized flourishing galleon trade between the Philippines and Mexico
Obras Pias
capital came from pious catholics and funds were loaned out interest
Obras Pias
charity foundation by laymen used for charity works and religious activities
Obras Pias
it became a banking institution run by the friars
Obras Pias
one of the first banks to emerge in the 19th century
Rodriguez Bank
first established commercial bank performing general banking functions and partfly financed foreign trade
Bangko Espanol - Filipino (1828)
on ___, Bangko Espanol - Filipino was given privilege note of issue
October 17, 1854
On October 17, 1854, Bangko Espanol - Filipino was given a what?
privilege note of issue
what is the current name of Bangko Espanol - Filipino
bank of the philippine islands (banco delas Islas Filipinas)
the opening led to accessibility of European Markets
Suez Canal (1869)
establishses branched in the country
chartered bank of india, australia, and china
a savings bank during the spanish era, established in 1882
Monte de Pieded (1882)
this bank put up a branch in the philippines in 1853
banco peninsula ultramarino in madrid
during what era did banks continue to do business and soon was joined by branches of Internaiton Banking Corporation and the Guranty Trust Company
american era
During what era did Postal Savings Bank was also created as parcel to the bereau of post
American era
during american era, banks continue to do business and soon was joined by?
- International Banking Corporation
- Guaranty Trust Company
during american era, what bank was created as parcel to the bureau of post
Postal Savings Bank
during american era, Postal Savings Bank was also created as what?
as parcel to the bureau of post
enumerate the banks established after world war I
- Yokohama Specie Bank (1919)
- China Banking Corporation (1920)
- Peoples Bank and Trust Company
- Mercantile Bank of China (1926)
upon the establishment of Commonwealth, ___ opened in 1973
Netherlands Indische Handels bank
what year did the Netherlands INdische Handels bank opened?
1973
after upon the establishment of ___ did the Netherlands Indische Handels bank opened?
Comonwealth
The Philippine bank of Commerce was the first?
first private bank with genuine Filipino capital
what year did the Philippine bank of Commerce was established?
1938
the first private bank with genuine Filipino capital
The Philippine bank of Commerce
in 1939, what are the three banks that commenced commercial banking operations
- Bank of the Commonwealth
- Philippine Bank of Communications
- government owned Agricultural - Industrial bank
what year did the Bank of Commonwealth, Philippine Bank of Communications, and the government owned Agricultural - Indutstrial bank commenced commercial banking operations
1939
during the japanese occupation, what did the japanese gave filipinos the permission to?
Filipino and japanese-owned banks were given permission to operate
what bank opened a branch in manila in 1942 which acted as a fiscal agent of the japanese government in the philippines?
Southern Development Bank
what year did Southern Development Bank opened its branch in Manila?
1942
what bank acted as a fiscal agent of the japanese government in the philippines?
Southern Development Bank
What is the purpose of Southern Development Bank for opening its branch in Manila?
to act as a fiscal agent of the Japanese government in the Philippines
during the postwar era, what was established?
- Executive Order 96
- Executive Order 48
- Rehabilitation Finance Corporation
what is the Executive Order 96 of the postwar era
all japanese occupation deposits were invalidated by Presidential Directive
what is the Executive Order 48 of the postwar era
paved the way for the re-opening of the pre-war banks
what is the Rehabilitation Finance Corporation
- it was created by virtue of Republic Act 85
- absorbed the assets and took over the functions of the AIB (Agriculture and Industrial Bank)
- The RFC provided credit facilities for the development of agriculture, commerce and industry and the reconstruction of properties damaged by the war.
all japanese occupation deposits were invalidated by Presidential Directive
Executive Order 96
paved the way for the re-opening of the pre-war banks
Executive Order 48
it was created by virtue of Republic Act 85
Rehabilitation Finance Corporation
what is the Republic Act No. 7653
New Central Bank Act of 1993
what is the New Central Bank Act of 1993 also known as?
Republic Act No. 7653
It governs Philippine Banking today.
Republic Act No. 7653 or the “New Central Bank Act of 1993”
It provides for the establishment of an independent monetary authority to be known as Bangko Sentral ng Pilipinas (BSP).
Republic Act No. 7653 or the “New Central Bank Act of 1993”
The business of banking has changed irreversibly. Developments in technology have more contributions in these irreversible changes in the banking system.
Republic Act No. 7653 or the “New Central Bank Act of 1993”
Technology has brought us E-Banking, the provision of banking services. The devise used to provide e-banking services are called E-money which can be divided into three groups.
Republic Act No. 7653 or the “New Central Bank Act of 1993”
these allow people to withdraw or deposit cash, transfer funds and pay bills from their bank accounts without physically going to the banks or writing a check.
access devices
these are prepaid cards in which funds are stored in electronic form on a computer chip embedded in cards.
Card-based products
involve funds that are stored in electronic form and are transferred over communication networks among participants in network
Prepaid software products or network money
Republic Act No. 8791 also known as
“General Banking Law of 2000”
what is General Banking Law of 2000 also known as?
Republic Act No. 8791
It provides regulation of the organization and operation of banks, quasi-banks, and trust entities
Republic Act No. 8791 or “General Banking Law of 2000”
Under Sec.3 of New General Banking Law in the Philippines: Banks shall refer to entities engaged in the lending of funds obtained in the form of deposits.
Republic Act No. 8791 or “General Banking Law of 2000”
Institutionalized a certain mass of banking reforms in the Philippines.
Republic Act No. 8791 or “General Banking Law of 2000”
Republic Act No. 8791 or “General Banking Law of 2000”
- It provides regulation of the organization and operation of banks, quasi-banks, and trust entities
- Institutionalized a certain mass of banking reforms in the Philippines.
- Under Sec.3 of New General Banking Law in the Philippines: Banks shall refer to entities engaged in the lending of funds obtained in the form of deposits.
Republic Act No. 9160 other name
“Anti-Money Laundering Act of 2001”
“Anti-Money Laundering Act of 2001” other term
Republic Act No. 9160
was passed into law on September 29,2001.
Republic Act No. 9160 or “Anti-Money Laundering Act of 2001”
Bank Mergers and consolidations are distinguished as follows:
- Merger - absorption of one or more corporations by another existing corporations.
- Consolidation - union of two or more corporations into a single new corporation.
absorption of one or more corporations by another existing corporations.
merger
union of two or more corporations into a single new corporation.
consolidation
what do you call a system wherein a certain amount deposited will support several times as much as in credit.
Partial Reserve System
A greater portion of deposits in commercial banks arises out of the proceeds of loans
Principle of banking business
certain amount deposited will support several times as much as in credit.
Principle of banking business
types of banks as to ownership
- privately owned
- publicly owned
types of banks as a place of incorporation
- domestic
- foreign
types of banks as to structure
- stock corporation
- non-stock corporation
- commercial bank
- trust company
types of banks as to function
- savings bank
- rural bank
- development bank
- cooperative bank
- Investment bank
- Central bank
types of bank as to management
- unit bank
- group banking
- branch banking
- chain banking
economic significance of bank
- a bank facilitates dealings between debtors and creditors because it acts as an intermediary in the flow of credit funds
- it allows others the use of idle funds of the community in productive activities
- creates money out of proceeds of loans
- maintains foreign trade
why the state supervises banks
- the banks are entrusted with other people’s money. Mismanagement or malfeasance in the duries of the board of directors will result to banking failure
- the state wants to assure that banks will perform their functions in the best interest of their clients throught the honest and efficient conduct of their functions
- the banks may either abuse their power or use them prudentyly
- the banks, furthermore, are quasi-public corporations and as in all other corporations of this calling, the state must exert its restraining influence to safeguard the welfare of its constituents
the sate does not only supervise banks, but with the advent of central banking, it also?
it also controls the bank’s operations
organized and capitalized by private citizens for their profit.
privately owned bank
organized by the state and sometimes has a minimum private ownership.
publicly owned bank
incorporated under Philippine Laws. Majority of the stocks are owned by Filipinos.
domestic bank
incorporated under laws of other country although the bank might be doing business in the Philippines
foreign bank
when they sell shares of stocks to the general public to raise capital.
Stock corporation
the organization is on a membership basis. Such as savings and loans associations.
Non-stock Corporations
is one that receives demand deposits and gives out short-term loans.
Commercial bank
an institution which deals in fiduciary activities such as administrator of estates , guardians of minor’s interest, executor of last wills and testaments, registrar and transfer agent of stocks and bonds and similar activities.
Trust company
one which primarily receives for safekeeping funds from persons who have no immediate need for cash and invests these finds in long-term investment.
Savings Bank
organized primarily to cater the needs of small farmers, small business, small cottage industries, and cooperative associations. They also receive deposits and loan out funds.
Rural Bank
takes care of giving loans to be used for developing the economy and may therefore
engage in medium and long-term lending.The organization of private development banks shall be,
under the control and supervision of the Development Bank of the Philippines (formerly Rehabilitation Finance
Corporation).
Development Bank
organized to furnish the credit needs of duly registered and operating cooperative associations of different kinds.
Cooperative bank
one which assist government bodies and newly organized corporations to raise funds for capital through the sale of stocks and bonds.
Investment Bank
is a bank of banks, as it does not deal directly with the public.
Central Bank
one where ownership is concentrated on one corporation which does banking business independent of others.
Unit Bank
When a majority portion of stocks of two more banks are held by a holding company, this is considered as ?
Group Banking
is one where there is a head office and two or more branches.
Branch Banking
When one or more persons control the activities of banks, it’s known as ?
Chain Banking
