Chapter 6 Flashcards
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
Bangko Sentral
It means a corporation more than 50% of the voting stock of which is owned by a bank or quasi bank
Subsidiary
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
Affiliate
It monitors and compares various indicators and the philippine banking system
BSP
Is compose of universal and commercial banks thrift banks rural and cooperative banks
Philippine Banking System
Represent the largest single group, resource wise, of financial institutions in the country
Universal and Commercial banks
They offer the widest variety of banking services among financial institutions
Universal and commercial banks
They are also authorized to engage in underwriting in other functions of investment houses, and to invest in equities of non allied undertakings
universal banks
Is composed of savings and mortgage banks private development banks stock savings and loan associations and microfinance thrift banks
thrift banking system
Are engage in accumulating savings of depositors and investing them
thrift banks
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
thrift banks
Or the more popular type of banks in the rural communities
Rural and cooperative banks
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
rural and cooperative banks
It help farmers through the stages of production from buying seedlings to marketing of their produce
rural and cooperative banks
It is privately owned and managed
rural banks
It is organized or owned by cooperatives or federation of cooperatives
cooperative bank
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
non banks woth quasi banking functions
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:
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
For a quasi bank any person of recognized competence in banking and finance may be designed as
receiver
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
receiver
the receiver shall
- file ex parte with the proper regional trial court
- convert the assets of the institutions to money
The assets of an institution under receivership or liquidation shall begin in
custodia legis
The access of an institution under receivership or liquidation be exempt from any order of
garnishment
levy
attachment
execution
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
petition for certiorari
It extends discounts loans and advances to banking institutions in order to influence the volume of credit consistent with objective of price stability
BSP
It also grants loans or advances to banking institutions in precarious financial condition or under serious financial pressures subject to certain conditions
BSP
Banks also pay their loans with properties under this agreement
dacion en pago agreement
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
rediscounting
The BSPs rediscounting is administered by
Department of Loans and Credit
The bsp also makes this available to banks participating directly in the clearing operations of the philippine clearing house corporation
overdraft credit line (OCL)
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
ceiling
Above not meeting the following criteria what is this criteria
CAMELS composite rating of atleast “3”
CAR of at least 10%
no chronic reserve deficiencies
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
BSP
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
rediscounting
Types of rediscount facilities available to qualified banks
peso rediscount facility
exporters dollar and yen rediscount facility
Papers that are eligible for rediscounting
commercial credits
production credits
other credits
Credit instruments resulting from the importation exportation purchase or sale of readily saleable goods and products order transportation within the philippines
commercialcredits
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
production credits
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
other credits
Available loan facilities and acceptable collaterals and their commercial credits
export credit
import credit
trading and transport loan
Available loan facilities and acceptable collaterals under production credits
Agricultural production
animal production
mineral production
agricultural processing
industrial processing
industrial loans
Available loan facilities and acceptable collaterals under other credits
Microfinance
service exporters
other services
medium and long-term loans
A packing credit to fund the working capital of exporters before the goods are shipped
export credit
To fund the working capital of importers covered by usance bill of exchange secured by a trust receipt agreement
import credit
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
trading and transport loan
To finance activities of farmers for the production of food crops, other crops and fishery
agricultural production
Production credits is the loan is secured by
REAL ESTATE MORTGAGE REM
To fund the activities of farmers for poultry and livestock development
animal production
To fund the activities of borrowers for the production of metallic and non-metallic or mining or milling
mineral production
To fund the economic activities of borrowers involved in the manufacturing of processed foods
agricultural processing
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
industrial processing
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
industrial loans
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
microfinance
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
service exporters
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
service exporters
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
other services
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
medium and long term loans
CAPEX
capital assets expenditures
It refers to the core level and trading assets brought about by long-term a rapid sales growth or increase production capacity
permanent working capital
Loans that are considered ineligible for rediscounting
Interbank loans
past due loans
unsecured loans
personal consumption loans
loans to non-bank financial institutions
loans funded from other borrowings
Unsecured loans may be accepted for rediscounting provided they are
microfinance loans
loans secured by a duly registered mortgage on real property of the bank
Can promissory note secured by certificate of land ownership award and emancipation patent be with discounted with bsp
no
Can promissory notes secured by certificate of land title issued by virtue of free patent be with discounted with bsp
yes
Who are considered eligible borrowers
Those with satisfactory credit standing and good business reputation and those who are able to meet the participating banks credit requirements
What is the term of the approve rediscounting line
1 year
This committee approves disapproves extends amends cancels suspense and restores the discounting line of bangs
credit committe
The credit committee composed of
Managing director of the monetary operations sub-sector
managing director of the regional monetary affairs subsector
director of the department of loans and credit
What are the eligibility requirements of the bsp discounting facility
A positive dda balance
no past due obligations. no collateral deficiencies on account of matured notes
Is an online internet-based counting facility of the bsp available to all qualified banks nationwide
eRediscounting
Based on the applicable bsp overnight reverse repurchase rate
peso rediscounts
Based on their respective london interbank offered rate for the last working day of the immediately preceding month
dollar or yen rediscounts
