Chapter 6 Flashcards
private non-bank financial institutions
- investment houses
- investment banks
- financing companies
- securities dealers/brokers
- savings and loan association
- mutual funds
- pawnshops
- lending investors
- pension funds
- insurance companies
- credit union
government banking institiutions
- development bank of the philippines
- land bank of the philippines
- philippine al amanah islamic investment bank
accumulating the saving of depositor and investing them, together with its capital, for personal or household finances whether secured or unsecured and financing for home building and home development
stock savings and mortgage bank
govt non-bank financial institutions
- GSIS
- SSS
- Pag-ibig
protects depositors by providing deposit insurance coverage for the depositing public and help promote financial stability.
Philippine Deposit Insurance Commission (PDIC)
they engage in underwriting in which they guarantee a price to a firm issuing stocks or bonds and then make profit by selling the stocks or bonds at higher price
investment banks
include savings and mortgage banks, stock savings, and loan association and private development banks. they accumulate funds for personal or household finance (whether secured or unsecured), or in financing for home building and home development
thrift banks
provide loans for developmental purposes, gives loans to the agricultural sector, commercial sector, and the industrial sector
Development Bank of the Philippines
Take savings in the form of annual premiums, then invest these funds in stocks, bonds, real estate, and mortgages, and finally make payments to the beneficiaries of the insured parties. In recent years, life insurance companies have also offered a variety of tax-deferred savings plans designed to provide benefits to the participants when they retire.
Insurance Companies
confined only to commercial bank functions
commercial bank/domestic bank
Refer to persons or entities engaged in the business of lending money with personal property, jewelry, and other durable goods as collateral for the loans given.
Pawnshops
established to assist various cooperatives by lending those funds at reasonable interest rates
cooperative banks
to promulgate and implement policies, rules and regulations governing the operations of entities engaged in insurance and pre-need activities.
Insurance Commission (IC)
is the agency of the Government of the Philippines responsible for regulating the securities industry in the Philippines.
Securities and Exchange Commission (SEC) -
Accepts money from savers and then use these funds to buy stocks, long-term bonds, or short term debt instruments issued by businesses or government units.
mutual funds
traditionally served individual savers and residential and commercial mortgage borrowers, accumulate the funds of many small savers and then lend this money to home buyers and other types of borrowers.
Savings and Loan Associations
Provides housing loans to both government and private employees.
Pag-ibig
RA 6048. authorizes the bank to promote and accelerate the socio-economic development of the ARMM by performing banking, financing and investment operations
Al-Amanah Islamic Investment Bank
any person/entity engaged in the business of buying and selling securities for his own or its client’s account thereby making a profit from the difference between purchase price and selling price
securities dealer
government bank, which provides financial support in the implementation of the agrarian reform program (ARP) of the government
Land Bank of the Philippines
Are cooperative associations whose members have a common bond, such as being employees of the same firm. Members’ savings are loaned only to other members, generally for auto purchases, home improvement loans, and even home mortgages. Credit unions often are the cheapest source of funds available to individual borrowers.
Credit Unions
regulatory landscape
-Alignment with global standards
-Deepening Capital Markets
-Strengthening surveillance
the central bank of the Philippines.
Banko Sentral ng Pilipinas (BSP)
Is any person or entity engaged in the business of effecting securities transactions, giving loans and earns interest from them.
Lending Investor
authorized by the central bank to accept deposits and make credit available to farmers, businessmen, and cottage industries in the rural areas.
rural bank
exercises all the powers and assumes all the obligations of the savings and mortgage as provided by the general banking act (RA 4093). helps construct, expand, and rehabilitate agricultural and industrial sectorq
private development bank
its primary purpose is to extend credit facilities to consumers and to industrial, commercial, or agricultural entities (by discounting or factoring commercial papers, etc)
financing company
Provides retirement benefits, housing loans, personal loans, emergency and calamity loans to government employees.
Government Service Insurance System
how do mutual funds reduce risk?
diversification
CURRENT RISK IN THE PHILIPPINE FINANCIAL SYSTEM
-Repricing, refinancing, and repayment risk
-Developments in the credit market
-Continuous demand for credit by corporate enterprises and households is evident in the domestic economy
they provide advice to firms issuing stocks and bonds or considering mergers with other firms.
investment banks
Provides retirement benefits, funeral benefits, housing loans, personal loans and calamity loans to employees who are working in private companies and others.
Social Security System
engages in underwriting securities of other corporations. it generate income from sale of investments in securities
investment house
private banking institutions
- expanded commercial bank/universal bank
- commercial bank
- thrift banks (stock savings and mortgage bank, private development bank, stock savings and loan associations)
- rural banks
- cooperative banks
engaged in the business of accumulating the savings of its members or stockholders. primarily engaged in servicing the needs of households by providing personal finance and long term financing for home building and development
stock savings and loan association (SLA)
performs the investment house function in addition to its commercial banking authority. it may be invested in the equities of allied and non-allied enterprises. allied enterprises may either be financial or non-financial
universal banks/expanded commercial banks
Are retirement plans funded by corporations or government agencies for their workers and administered primarily by the trust departments of commercial banks or by life insurance companies. Pension funds invest primarily in bonds, stocks, mortgages, and real estate.
Pension Funds
