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3-12. BA FM31P > Group 4: Classification of Banks > Flashcards

Group 4: Classification of Banks Flashcards

1
Q

It is an institution authorized by a government to accept deposits, pay interest, clear checks, make loans, act as an intermediary in financial transactions, and provide other financial services to its customers.

A

Bank

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2
Q

PRIMARY ROLE

A

take in funds—called deposits—from those with money, pool them, and lend them to those who need funds

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3
Q

FUNCTIONS

A
  • Accepting Deposits
  • Granting Loans & Advances
  • Payment & Settlement Systems
  • Providing Financial services & advices
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4
Q

A government
agency task to protect depositors through the insurance on deposit which will be paid in the event of a bank closure.

A

PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC)

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5
Q

PDIC provides a maximum deposit insurance coverage of ______________ per depositor per bank

A

PhP500,000

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6
Q

Bank products covered by deposit insurance:

A
  • Savings Account
  • Current Account
  • Special Savings Account - Time Deposit
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7
Q

True or False

BSP aims to maintain price stability by adjusting the RRP. If inflation is high, BSP raises the RRP to curb borrowing and spending, thus reducing demand pressure. Inversely, when inflation is low, the BSP lowers the RRP to encourage borrowing and spending, stimulating economic growth.

A

True

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8
Q

are bank products meant for saving, where customers place their money with a bank for an indefinite period of time in exchange for the delivery of their deposited amount plus the agreed interest at the end of that term.

A

Deposit

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9
Q

ADVANTAGES

A
  • Safety of Public Wealth - Availability of Cheap
  • Loans Propellant of Economy
  • Development in Rural Areas
  • Global Reach
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10
Q

DISADVANTAGES

A
  • Chances of Bank Going Bankrupt
  • Risk of Fraud
    -Robberies Risk of Public Debt
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11
Q

Customers of a bank or other financial institution withdraw their deposits at the same time over fears about the bank’s solvency.

A

Bankrun

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12
Q

A legal proceeding initiated when a person or business cannot repay outstanding debts or obligations

A

Bankruptcy

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13
Q

Classification of Banks

A
  • Universal Bank
  • Commercial Bank
  • Thrift Bank
  • Rural Bank
  • Cooperative Bank
  • Islamic Bank
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14
Q

expanded commercial banks. A ___________ has the same powers as a commercial bank with the following additional powers: the powers of an investment house as provided in existing laws and the power to invest in non-allied enterprises.

A

universal bank

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15
Q

Required Capitalization of Universal Bank

A

P4.95B

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16
Q

are a type of financial institutions that operates services related to withdrawals, deposit of money, issuing loans and other business activities for everyday banking needs.

A

Commercial Banks

17
Q

They have the power to accept drafts and issue letters of credit, discount and negotiate promissory notes

A

Commercial Banks

18
Q

Required Capitalization of commercial banks

A

P2.4 B

19
Q

has the power to accept savings and time deposits, act as a correspondent with other financial institutions and as a collection agent for government entities, issue mortgages, engage in real estate transactions and extend credit.

A

Thrift Bank

20
Q

Required Capitalization of Thrift Bank:

A

P325 M

21
Q

It is a financial institution specifically designed to serve the needs of rural communities. They are typically smaller than commercial banks and often have a more localized focus.

A

Rural Banks

22
Q

These banks play a crucial role in providing financial services to farmers, fishermen, small businesses, and other individuals and organizations in rural areas.

A

Rural Banks

23
Q

Required Capitalization of Rural Bank

A

P100 M

24
Q

Owned and controlled by its members, who are typically individuals or organizations with a common interest.

A

Cooperative Bank

25
Q

These banks are often established to serve specific groups, such as farmers, teachers, or employees of a particular company.

A

Cooperative Bank

26
Q

Required Capitalization of cooperative bank:

A

P10 M

27
Q

is a financial institution that operates according to Islamic law (Sharia).

A

Islamic Bank

28
Q

It provides banking services without engaging in activities prohibited by Islam, such as charging interest (riba) and investing in haram (forbidden) industries.

A

Islamic bank

29
Q

are collective investment undertakings made up of the capital of many investors, which a management company invests in various financial products.

A

Investment

30
Q

Examples of Universal Banks

A

BBDO
Landbank
China Bank
BPI

31
Q

Examples of Commercial Banks

A

PNB
Bank of Commerce
Citibank
Metrobank

32
Q

Examples of Thrift Bank

A

1st Alley Bank
AlliBank
Bangko Kabayan
PSBank

33
Q

Examples of Rural Banks

A

Rural of Bacong
Rural of Tanjauy
Bolinao Bank
Green Bank

34
Q

Example of Cooperative Bank

A
  • 1st Isabela Cooperative Bank
  • Planters Development Bank
  • Cooperative Bank of the Philippines
  • Rural Bank of the PH
35
Q

Examples of Islamic Banks

A
  • CARD Bank
  • Al-Amanah Islamic Investment Bank of the Philippines

3-12. BA FM31P (7 decks)

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