Chapter 6

Question 1

It shall have supervision over, and conduct periodic or special examinations of, banking institutions and quasi bank including their subsidiaries and affiliates engage in allied it means that a corporation more than 50% of the voting stock of which is owned by a bank or quasi bank

Answer 1

Bangko Sentral

Question 2

It means a corporation more than 50% of the voting stock of which is owned by a bank or quasi bank

Answer 2

Subsidiary

Question 3

It means a corporation the voting stock of which to the extent of 50% or less is owned by a bank or quasi bank or which is related or linked to such institution or intermediaries through common stockholders or such other factors as may be determined by the monetary board

Answer 3

Affiliate

Question 4

It monitors and compares various indicators and the philippine banking system

Answer 4

BSP

Question 5

Is compose of universal and commercial banks thrift banks rural and cooperative banks

Answer 5

Philippine Banking System

Question 6

Represent the largest single group, resource wise, of financial institutions in the country

Answer 6

Universal and Commercial banks

Question 7

They offer the widest variety of banking services among financial institutions

Answer 7

Universal and commercial banks

Question 8

They are also authorized to engage in underwriting in other functions of investment houses, and to invest in equities of non allied undertakings

Answer 8

universal banks

Question 9

Is composed of savings and mortgage banks private development banks stock savings and loan associations and microfinance thrift banks

Answer 9

thrift banking system

Question 10

Are engage in accumulating savings of depositors and investing them

Answer 10

thrift banks

Question 11

They also provide short-term working capital and medium and long-term financing to businesses engage and agriculture services industry and housing and diversified financial and allied services and to their chosen markets and constituents especially small and medium enterprises and individuals

Answer 11

thrift banks

Question 12

Or the more popular type of banks in the rural communities

Answer 12

Rural and cooperative banks

Question 13

Their role is to promote and expand the rural economy in an orderly and effective manner by providing the people in the rural communities with basic financial services

Answer 13

rural and cooperative banks

Question 14

It help farmers through the stages of production from buying seedlings to marketing of their produce

Answer 14

rural and cooperative banks

Question 15

It is privately owned and managed

Answer 15

rural banks

Question 16

It is organized or owned by cooperatives or federation of cooperatives

Answer 16

cooperative bank

Question 17

This group consists of institutions engage in the borrowing of funds from 20 or more lenders for the borrowers own account through issuances, endorsement or assignment with recourse or acceptance of deposit substitute for purposes of relending or purchasing receivables and other obligations

Answer 17

non banks woth quasi banking functions

Question 18

upon report of the head of the supervising or examining department, in proceedings in receivership and liquidation, the monetary board finds that a bank or quasi bank:

Answer 18

a. is unable to pay its liabilities as they become due
b. has insufficient realizable assets
c. cannot continue in business without involvinh probable losses to its depositors or creditors
d. has willfully violated a cease and desist order

Question 19

For a quasi bank any person of recognized competence in banking and finance may be designed as

Answer 19

receiver

Question 20

It shall immediately gather and take charge of all the assets and liabilities of the institution administered the same for the benefit of its creditors and exercises general powers of a receiver under the revised rules of court but shall not with the exception of administrative expenditures

Answer 20

receiver

Question 21

the receiver shall

Answer 21

1. file ex parte with the proper regional trial court
2. convert the assets of the institutions to money

Question 22

The assets of an institution under receivership or liquidation shall begin in

Answer 22

custodia legis

Question 23

The access of an institution under receivership or liquidation be exempt from any order of

Answer 23

garnishment
levy
attachment
execution

Question 24

This petition may only be filed by the stockholders of record representing the majority of the capital stock within 10 days from receipt by the board of directors of the institutions of the order directing receivership liquidation or conservatorship

Answer 24

petition for certiorari

Question 25

It extends discounts loans and advances to banking institutions in order to influence the volume of credit consistent with objective of price stability

Answer 25

BSP

Question 26

It also grants loans or advances to banking institutions in precarious financial condition or under serious financial pressures subject to certain conditions

Answer 26

BSP

Question 27

Banks also pay their loans with properties under this agreement

Answer 27

dacion en pago agreement

Question 28

Is a standing credit facility provided by the bsp to help banks meet temporary liquidity needs by refinancing the loans they extend to their clients

Answer 28

rediscounting

Question 29

The BSPs rediscounting is administered by

Answer 29

Department of Loans and Credit

Question 30

The bsp also makes this available to banks participating directly in the clearing operations of the philippine clearing house corporation

Answer 30

overdraft credit line (OCL)

Question 31

It is defined as the sum of clean ocl equivalent to 15% of the banks rediscounting line with bsp and the collateralized ocl that will be imposed by the bsp

Answer 31

ceiling

Question 32

Above not meeting the following criteria what is this criteria

Answer 32

CAMELS composite rating of atleast "3" CAR of at least 10% no chronic reserve deficiencies

Question 33

They extend financial assistance to banking institutions in the form of fully secured liquidity loans as a temporary remedial measure to help solvent banks overcome their liquidity problems arising from causes be under control

Answer 33

BSP

Question 34

It is a privilege of a qualified bank to obtain loans or advances from the bangko sentral ng pilipinas using the eligible papers of it borrow words as collaterals

Answer 34

rediscounting

Question 35

Types of rediscount facilities available to qualified banks

Answer 35

peso rediscount facility exporters dollar and yen rediscount facility

Question 36

Papers that are eligible for rediscounting

Answer 36

commercial credits production credits other credits

Question 37

Credit instruments resulting from the importation exportation purchase or sale of readily saleable goods and products order transportation within the philippines

Answer 37

commercialcredits

Question 38

Credit instruments related to the production or processing of agricultural animal mineral or industrial products with maturities of not more than 360 days from the date of theirrediscount by the bsp

Answer 38

production credits

Question 39

Special credit instruments not otherwise with this countable under commercial and production credits such as but not limited to microfinance housing loans services agricultural loans with long gestation period and medium and long-term loans covered by credit instruments with maturities of more than 360 days but not more than 10 years from the date of their discounted a bsp

Answer 39

other credits

Question 40

Available loan facilities and acceptable collaterals and their commercial credits

Answer 40

export credit import credit trading and transport loan

Question 41

Available loan facilities and acceptable collaterals under production credits

Answer 41

Agricultural production animal production mineral production agricultural processing industrial processing industrial loans

Question 42

Available loan facilities and acceptable collaterals under other credits

Answer 42

Microfinance service exporters other services medium and long-term loans

Question 43

A packing credit to fund the working capital of exporters before the goods are shipped

Answer 43

export credit

Question 44

To fund the working capital of importers covered by usance bill of exchange secured by a trust receipt agreement

Answer 44

import credit

Question 45

To fund the working capital of domestic traders of readily saleable goods or their transportation within the philippines secured by a duly registered mortgage on real estate property of which 70% of the appraised value equals or exceeds outstanding balance of the pn

Answer 45

trading and transport loan

Question 46

To finance activities of farmers for the production of food crops, other crops and fishery

Answer 46

agricultural production

Question 47

Production credits is the loan is secured by

Answer 47

REAL ESTATE MORTGAGE REM

Question 48

To fund the activities of farmers for poultry and livestock development

Answer 48

animal production

Question 49

To fund the activities of borrowers for the production of metallic and non-metallic or mining or milling

Answer 49

mineral production

Question 50

To fund the economic activities of borrowers involved in the manufacturing of processed foods

Answer 50

agricultural processing

Question 51

To fund the working capital needs of local manufacturers that have supply arrangements with direct exporters covered by local pio or domestic letter of credit or deed of real estate mortgage

Answer 51

industrial processing

Question 52

To finance industries involved in the manufacturing of wood products paper and paper products textile and textile products wearing apparel footwear leather and many more

Answer 52

industrial loans

Question 53

Small loans granted to the basic sectors and other loans granted to the poor and low-income households for their micro enterprises and small businesses so as to enable them to raise their income levels and improve their living standards

Answer 53

microfinance

Question 54

To fund the working capital of service exporters who are engaged in rendering technical professional and other services covered by a duly notarized assignment of receivables from service contracts

Answer 54

service exporters

Question 55

It refer to natural persons who are residents of the philippines or juridical persons organized and licensed under philippine laws engaged in rendering technical professional and other services abroad paid for in acceptable foreign currencies

Answer 55

service exporters

Question 56

To fund the working capital of local industries engaged in rendering various services such as hospitals schools hotels and restaurants transportation postal and many more

Answer 56

other services

Question 57

Loans covered by credit instruments with maturities of more than 360 days but not more than 10 years from date of rediscount by the bsp

Answer 57

medium and long term loans

Question 58

CAPEX

Answer 58

capital assets expenditures

Question 59

It refers to the core level and trading assets brought about by long-term a rapid sales growth or increase production capacity

Answer 59

permanent working capital

Question 60

Loans that are considered ineligible for rediscounting

Answer 60

Interbank loans past due loans unsecured loans personal consumption loans loans to non-bank financial institutions loans funded from other borrowings

Question 61

Unsecured loans may be accepted for rediscounting provided they are

Answer 61

microfinance loans loans secured by a duly registered mortgage on real property of the bank

Question 62

Can promissory note secured by certificate of land ownership award and emancipation patent be with discounted with bsp

Answer 62

no

Question 63

Can promissory notes secured by certificate of land title issued by virtue of free patent be with discounted with bsp

Answer 63

yes

Question 64

Who are considered eligible borrowers

Answer 64

Those with satisfactory credit standing and good business reputation and those who are able to meet the participating banks credit requirements

Question 65

What is the term of the approve rediscounting line

Answer 65

1 year

Question 66

This committee approves disapproves extends amends cancels suspense and restores the discounting line of bangs

Answer 66

credit committe

Question 67

The credit committee composed of

Answer 67

Managing director of the monetary operations sub-sector managing director of the regional monetary affairs subsector director of the department of loans and credit

Question 68

What are the eligibility requirements of the bsp discounting facility

Answer 68

A positive dda balance no past due obligations. no collateral deficiencies on account of matured notes

Question 69

Is an online internet-based counting facility of the bsp available to all qualified banks nationwide

Answer 69

eRediscounting

Question 70

Based on the applicable bsp overnight reverse repurchase rate

Answer 70

peso rediscounts

Question 71

Based on their respective london interbank offered rate for the last working day of the immediately preceding month

Answer 71

dollar or yen rediscounts