Lesson 4 part 2

Question 1

is a government instrumentality created in 1963 by Republic Act 3591, as amended, to insure the deposits of all banks

Answer 1

PHILIPPINE DEPOSIT INSURANCE CORPORATION
or PDIC

Question 2

exists to protect depositors by providing deposit insurance coverage for the depositing public and help promote financial stability.

Answer 2

PHILIPPINE DEPOSIT INSURANCE CORPORATION
(PDIC)

Question 3

is tasked to strengthen the mandatory deposit insurance coverage system to generate, preserve, maintain faith and confidence in the country’s banking system; and protect it from illegal schemes and machinations.

Answer 3

PDIPHILIPPINE DEPOSIT INSURANCE CORPORATION
(PDIC)

Question 4

PDIC is a government instrumentality created in 1963 by?

Answer 4

virtue of Republic Act 3591

Question 5

The PDIC’s core mandates ?

Answer 5

deposit insurance and liquidation of closed banks.

Question 6

The Corporation provides the maximum deposit insurance coverage of?

Answer 6

Php500,000 per bank depositor per bank

Question 7

the PDIC is tasked to continuously build up the level of the ———–

Answer 7

Deposit Insurance Fund (DIF),

Question 8

Founding Date

Answer 8

June 22, 1963 (republic act 3591, as amended)

Question 9

Rural Bank shall be operated with ———

FEATURES OF THE RURAL BANK

Answer 9

Certificate of Authority

Question 10

Qualification to apply as one of the stockholders in the Rural Bank:

FEATURES OF THE RURAL BANK

Answer 10

• Filipino Citizenship
• Good Moral Character and Integrity
• Financial Capacity
• Good Credit Standing
• Not Convicted of any crime involving moral turpitude

Question 11

The Rural bank is community-based but not community-owned. It is privately owned and managed

FEATURES OF THE RURAL BANK

Answer 11

(the
difference between Rural to Cooperative banks)

Question 12

FUNCTIONS OF THE RURAL BANK

Answer 12

Depository Function
Loans and Discount Functions
Investment Function
FX FUNCTION

Question 13

The Monetary Board allowed banks, including the Rural bank, to buy and sell foreign exchange as they expected that the bank would manage the risks arising from the Foreign Exchange.

Answer 13

On November 26, 2014

Question 14

how many rural banks are now?

Answer 14

711 rural banks (with 1,959 branches/other offices)

Question 15

how many rural banks in 1853?

Answer 15

only 18 rural banks

Question 16

TOP 3 RURAL BANKS (2022)

Answer 16

1. Bank of Makati
2. One Network Bank, Inc.
3. Card Bank Inc.

Question 17

First and only rural bank to get into Business Profiles’ List of the top 500 corporations in the Philippines, based on gross revenues in 2010. It’s no. 266 on the list.

TOP 3 RURAL BANKS (2022)

Answer 17

Bank of Makati

Question 18

• 15.7 billion pesos in resources as of Dec. 31, 2011.
• Largest rural bank network in Mindanao.

TOP 3 RURAL BANKS (2022)

Answer 18

One Network Bank, Inc.

Question 19

• First microfinance NGO to become a rural bank.
• One of the seven signatories in the creation of the country’s microfinance credit bureau.

TOP 3 RURAL BANKS (2022)

Answer 19

Card Bank Inc.

Question 20

The bank’s president and at least a majority of key executive officers must be residents of the Rural.

True or false?

Answer 20

True

Question 21

• Key Executives Officers must not be related to one another.
• No individual or family group (those related within the 3rd degree of consanguinity or affinity)
  shall own or control more than 35% of the voting shares upon the organization of the rural bank.
• No officer or director of a rural bank can be an officer or director of another rural bank.
• A person connected in the government, whether by election or appointment, cannot serve as
  officers of the rural bank

Answer 21

FEATURES AND OFFICERS

Question 22

Examples of Rural banks:

Answer 22

• CEBUANA LHUILLER RB INC
• BOF INC