Lesson 4 Flashcards
is a term for banks that offer a variety of comprehensive financial services, including both commercial banking and investment banking services.
UNIVERSAL BANK
Example of Universal banks:
- BDO unibank
- Producers Bank
- HSBC
- Security Bank
Offers a wide array of financial services, including those provided by commercial banks, as well as investment banking, insurance, asset management, and more.
UNIVERSAL BANK
Services
Serves a broader range of clients, including individuals, businesses, and large corporations.
UNIVERSAL BANK
Target Customers
More complex due to the integration of multiple financial services under one roof.
UNIVERSAL BANK
Complexity
Higher risk because of the diverse range of services and the potential for greater exposure to different financial markets
UNIVERSAL BANK
Risk Profile
The term ——— refers to a financial institution that** accepts deposits **and offers different banking and financial products.
COMMERCIAL BANK
provide these services to** people and businesses.**
COMMERCIAL BANK
make money by providing and earning interest from loans such as mortgages, auto loans, business loans, and personal loans.
COMMERCIAL BANK
Customer deposits provide banks with the ———- to make these loans.
capital
Example of Commercial Banks:
- BPI
- CITIBANK
- ROBINSON BANK
- CHASE BANK
Primarily focuses on traditional banking services such as accepting deposits, providing loans (personal, business, and mortgages), and offering basic financial products like savings and checking accounts.
(COMMERCIAL BANK)
Services
(COMMERCIAL BANK)
Mainly serves individuals and businesses with their everyday banking needs.
(COMMERCIAL BANK)
Target Customers
(COMMERCIAL BANK)
Generally simpler and more focused on core banking activities.
(COMMERCIAL BANK)
Complexity
(COMMERCIAL BANK)
Lower risk due to the limited scope of services.
(COMMERCIAL BANK)
Risk Profile
(COMMERCIAL BANK)
also just called a thrift—is a type of financial institution that specializes in** offering savings accounts** and** originating home mortgages for consumers.**
THRIFT BANK
also called a** Savings and Loan Association** (S&L)—is a type of financial institution that specializes in offering savings accounts and originating home mortgages for consumers.
THRIFT BANK
What Are Some Types of Thrift Banks:
- savings banks
- private development banks
- stock savings and loan associations.
What Is the Difference Between Thrift Banks and Commercial Banks?
operate similarly to traditional banks, but they are **designed to serve consumers rather than businesses. **
commercial banks also offer financial services to businesses.
are financial institutions primarily funded by consumer deposits.
Thrift banks
AN ACT** PROVIDING FOR THE REGULATION** OF THE ORGANIZATION AND OPERATIONS OF THRIFT BANKS, AND FOR OTHER PURPOSES.
REPUBLIC ACT NO. 7906
is a private banking institution that **serves rural areas ** that mobilizes financial resources and manages and provides loans to people who want to have a business but struggle in the capital, especially in the Rural Area.
RURAL BANKS
from the highly-dense metropolitan cities in a country.
RURAL BANKS
Definition are traditional banks that serve farmers, fishermen, workers or communities away from the highly-dense metropolitan cities in a country.
RURAL BANK
as of end-December 2018, how many rural banks and offices?
472 rural banks and 3,600 offices
happened to **promote **the development of Rural Banking because of World War II’s impact. Under the Central Bank’s supervision,
HISTORY OF RURAL BANKING IN THE PHILIPPINES
In June 1952, the enactment of Republic Act 720
The enactment of Republic Act 720 in 1952 helped lay the groundwork for?
R.A. 7353 = AN ACT PROVIDING FOR THE CREATION, ORGANIZATION AND OPERATION OF RURAL BANKS, AND FOR OTHER PURPOSES
the** law protects **the people in the rural area to regard the need for more fair distribution of opportunity, money, and wealth. Also, to make loans accessible in rural areas, farmers and small enterprises with little financial need prioritize loan approval.
January 22,the Rural Banks Act of 1992
he Rural Bank aims to promote and expand the Rural Economy in the Rural Communities, especially the places that are hard to reach the Urban Area to do some financial services.
OBJECTIVE OF THE RURAL BANK
Promote the Rural Economy
he bank also helps to expand the agricultural sector in the Rural Areas to aid them in credit to start capital for their agriculture business. I
Provide credit and Monetary aid
