Chapter 1 Flashcards
refers to the whole gamut of market dealings with financial assets
Financial system
it is where the lenders and borrowers of funds meet to finance their needs and satisfy their objectives.
Financial System
the lenders can be
individuals
businesses
institutions
government
the borrowers can be
individuals
businesses
institutions
government
when the lenders and borrowers meet, the lenders transform their fudns into
financial assets
the borrowers receive the funds as their?
financial liabilities
like any other commodity, has a price.
Money
brings together the borrowers and lenders of funds
intermediation process
is the most common form of financial intermediation in the financial system
Banking system
type of financial markets
Money market
Capital Market
types of institutions
banking institution
non-bank financial intermediaries
non-bank thrift institutions
components of banking institutions
universal banks
commercial banks
thrift banks
rural banks
specialized government banks
Components of non-bank financial intermediaries
investment houses
financing companies
securities dealers/ brokers
investment companies
insurance companies
lending investors
pawnshops
Government non- bank financial institutions
venture capital corporations
non-bank thrift institutions
mutual building & loan associations
non stock savings & loans
is responsible for implementing the monetary policy and regulation of the banking system.
Bangko sentral ng pilipinas
supervises the operations of the insurance companies
insurance commission
works with the bsp and IC in supervising and regulating the activities of the financial institutions in the country
Securities and exchange commission
are expanded commercial bans capitalized at 5 billion or more
Universal Banks
Are banks with a minimum capitalization of 2.8 billion
Commercial Banks
Are banks with a minimum capitalization of 325 million for those whose head office is within metro manila, and php 25 million otherwise.
Thrift or savings bank
are normally operatign in the sector with minimum capitalization of 3.2 million. but those in metro manila needs minimum capitalization of 32 million
Rural Banks
Are government owned and controlled corporations engaged in specialized lending
Specialized government banks
are involved in underwriting of securities, financial consultancy
Investment houses
lend to business firms and individuals using equity capital and long-term borrowed funds
financing companies
sell its own securities to the public and invest the proceeds in stocks and bonds
Investment Companies
are engaged in property -liability, life insurance.
Insurance Companies