BANKING REVIEWER Flashcards
What is the General Banking Law of 2000?
An act providing for the regulation of the organization and operations of banks, quasi-banks, trust entities and for other purposes.
What is Republic Act No. 8791?
An act providing for the regulation of the organization and operations of banks, quasi-banks, trust entities and for other purposes.
What are the core-banking functions of banks?
Mobilizing savings and allocating resources.
What is required for a bank to be established according to the GBL?
Banks must be stock corporations and obtain funds from deposits of twenty or more persons.
Which types of banks does the General Banking Law govern?
Universal banks, commercial banks, thrift banks, rural banks, cooperative banks, and Islamic banks.
What does Section 71 of the GBL state?
It governs the organization, ownership, capitalization, and powers of various types of banks.
What is the Manual of Regulations for Banks (MORB)?
Rules implementing the General Banking Law issued by the Bangko Sentral ng Pilipinas.
Who supervises the operations and activities of banks in the Philippines?
The Bangko Sentral ng Pilipinas.
What does Republic Act No. 1405 pertain to?
Secrecy of Bank Deposit.
What is the purpose of Republic Act No. 1405?
To prohibit disclosure of or inquiry into deposits with any banking institution.
What does Republic Act No. 6426 establish?
A foreign currency deposit system in the Philippines.
What does Section 8 of Republic Act No. 6426 state?
All foreign currency deposits are confidential and exempt from examination without depositor’s permission.
What is the focus of Republic Act No. 3765?
Truth in Lending Act, requiring disclosure of finance charges in credit extensions.
What is the purpose of Republic Act No. 3591?
To establish the Philippine Deposit Insurance Corporation (PDIC).
What is the main policy of the Philippine Deposit Insurance Corporation?
To promote and safeguard the interests of the depositing public.
What does Republic Act No. 7353 pertain to?
Creation, organization, and operation of rural banks.
What does the New Central Bank Act establish?
An independent central monetary authority known as the Bangko Sentral ng Pilipinas.
What is the aim of Republic Act No. 7721?
To liberalize the entry and scope of operations of foreign banks in the Philippines.
What are the modes of entry for foreign banks as per Republic Act No. 10641?
Acquiring existing banks, investing in new subsidiaries, or establishing branches.
What is the focus of the Anti-Money Laundering Act of 2001?
To define money laundering and provide penalties.
What does Republic Act No. 10000 promote?
An agriculture and agrarian reform credit and financing system.
What does the term ‘negotiable’ mean?
Transferable.
What is a negotiable instrument?
Documents that promise to pay a certain sum of money to the bearer or assignee.
What are the features of negotiable instruments?
- Easily transferable
- Must be written
- Time of payment must be certain
- Payee must be certain
What are the functions of negotiable instruments?
- Operates as a substitute for money
- Means of creating and transferring credit
- Facilitates the sale of goods
- Increases the purchasing medium in circulation
What are the eight requirements for negotiable instruments?
- Must be in writing
- Must be signed by the maker or drawer
- Must be a definite order or promise to pay
- Must be unconditional
- Must be an order or promise to pay a sum certain
- Must be payable in money
- Must be payable on demand or at a definite time
- Must be payable to order or bearer
What are the common types of negotiable instruments?
- Checks
- Bills of exchange
- Promissory notes
What is a check?
A bill of exchange directing a specified banker to pay a certain sum of money to the bearer.
What defines a promissory note?
A signed document promising to pay a stated sum to a specified person at a specified date or on demand.
What is a bill of exchange?
An order from the creditor to the debtor to pay a certain person after a certain period.
