Module 1 - Overview about Banking & Financial Institutions

Question 1

BSP was established on…

Answer 1

July 3, 1993

Question 2

The Bangko Sentral ng Pilipinas (BSP) is the…

Answer 2

Central Bank of the Republic of the Philippines

Question 3

The BSP enjoys…

Answer 3

Fiscal and administrative autonomy from the National Government

Question 4

Is designed to be an authoritative codification of regulations governing banks which are all under supervision of the Bangko Sentral ng Pilipinas

Answer 4

Manual of Regulations for Banks (MORB)

Question 5

Manual of Regulations for Banks (morb)…

Answer 5

methodically and logically organizes the Bangko Sentral rules and policy issuances that implement the broader provision of the General Banking law of 2000

Question 6

MORB provides the…

Answer 6

rules governing the operations of banks in the country and serves as a useful reference for an individual, institution or agency with an active interest in the Banking system

Question 7

What are the functions of MORB

Answer 7

• Monetary operation
• Financial Supervisions
• Payments and System Oversight
• Loans and Credit Operations
• Economic Education

Question 8

What does the MORB mandates?

Answer 8

• Systemic Risk Management
• Currency Managemen
  • Inclusive Finance
• Internal Economic Cooperation

Question 9

What is the importance of bank?

Answer 9

• it takes deposits from individuals or businesses with the promise that the money can be withdrawn when the depositor wants it
• it also lends the money it has on deposit to other individuals and businesses
• it earns profit by receiving interest payments on loans or from the borrower.

Question 10

What is the Vision of BSP?

Answer 10

BSP aims to be recognized globally as the monetary authority and primary financial system supervisor that supports a strong economy and promotes a high quality of life for all Filipinos

Question 11

What is the Mission of BSP?

Answer 11

To promote and maintain

• Price stability
• Strong Financial System/Financial Stability
• Efficient settlement payments system

conducive to a sustainable and inclusive growth of the economy

Question 12

What are the core values of BSP?

Answer 12

• Excellence
• Patriotism
• Integrity
• Solidarity
• Accountability

Question 13

Two Major kinds of Banking Institutions

Answer 13

(1) Private Banking Institutions
(2) Government Banking Institutions

Question 14

What are the two private banking institutions?

Answer 14

(1) Commercial banking
(2) Thrift Banks

Question 15

What are under the Thrift banks?

Answer 15

• savings and mortgage
• savings and loan association
• private development banks
• rural banks

Question 16

Are comprised of commercial banking such as universal banks and ordinary commercial banks, thrift banks like saving and mortgage banks, savings and loan association banks, private development banks, and the rural banks.

Answer 16

Private Banking Institutions

Question 17

Consists of Philippine National Bank, Development Bank of the Philippines, and the Bank of the Philippines

Answer 17

Government Banking Institutions

Question 18

These banks continue to account for the bulk of the expanded total resources of the banking industry

Answer 18

Commercial Banking Institutions

Question 19

Are primarily engaged in mobilizing the small savings of the people.

They provide loans at reasonable interest rates.

They provide funds for agriculture and industry at reasonable interest rates.

They have motivated low income groups and school children to save their money in the bank.

Answer 19

Thrift banks

Question 20

The primary function of this bank is to receive time deposits of different types and to invest its fund in long term investment.

It is organized primarily for the purpose of accumulating the small savings of depositors ans investing them

Answer 20

Savings and Mortgage Banks

Question 21

Are lending and banking institutions specialized in offering residential mortgage loans and accepting savings deposits

Answer 21

Savings and Loan Association

Question 22

It is classified as a development bank and may perform all othe rfunctions of a thrift bank.

Its primary objective is to provide banking services principally to cater to the medium and long term needs of agricultural and industrial enterprises with emphasis on small and medium scale industries

Answer 22

Private Development Banks

Question 23

The role of the Philippine Government in the banking industry is…

Answer 23

To supplement the credit facilities of the private financial institutions.

Question 24

What are the two classifications under Non-bank financial institutions?

Answer 24

(1) Government Non-Bank Financial Institutions
(2) Private Non-Bank Financial Institutions

Question 25

Is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange

Answer 25

Financial Institution

Question 26

Examples of Government Non-Bank Financial Institutions

Answer 26

• Government Insurance System (GSIS)
• Social Security System (SSS)
• Philippine Export and Foreign Loan Guarantee Corporation
• National Mortgage Finance Corporation

Question 27

Examplés of Private Non Bank Financial Institutions

Answer 27

• Investment House
• Securities brokers/dealers
• Building and Loan Associations
• Credit Unions
• Private Insurance Companies
  • Pawnshop