UNIT II: The Philippine Financial System Flashcards
OBRAS PIAS is translated as? and was founded in?
pious works; 1594
EXPLAIN OBRAS PIAS
a fund that was donated for charitable and pious projects managed by religious confraternities or friars
it was used to LOAN TO TRADERS
the OBRAS PIAS ended in _____ and it became the ___________ of a banking insti in the PH
1820; forerunner
organized by Governor Jose y Vargas in 1781, it helped transform the PH into a self-sufficient economy that became fin independent from Mexico
ECONOMIC SOCIETY OF FRIENDS OF THE COUNTRY
___________________ happened when King Ferdinand VII abolished the monopoly of galleon trade and the privileges of the Royal Company of the PH
TRADE LIBERALIZATION
what was the FIRST FILIPINO BANK?
Rodriguez Bank
who formed the FIRST FILIPINO BANK and WHEN DID HE FORM IT?
RODRIGUEZ BANK; 1830
the RODRIGUEZ BANK was called a bank, but it was more of a _________________
LOAN ASSOCIATION
what is the FIRST GOVERNMENT BANK in the PH?
Banco Espanol-Filipino de Isabel II
who established the FIRST GOVERNMENT BANK in the PH? and when?
Governor Antonio de Urbiztondo y Eguia in 1851
first bank in SOUTHEAST ASIA?
Banco Espanol-Filipino de Isabel II
bank that is currently known as BPI?
Banco Espanol-Filipino de Isabel II
what is the first SAVINGS BANK?
Monte de Piedad y Caja de Ahorros de Manila also know as Monte de Piedad Savings Bank
the first savings bank (Monte de Piedad Savings Bank) was established in _____ by ______?
1882; Felix Huertas
was considered as the “big bank for the small people”
PHILIPPINE NATIONAL BANK (PNB)
the assets and liabilities of the
First Agricultural Bank of the Philippine Government were transferred to this bank
PHILIPPINE NATIONAL BANK (PNB)
on July 18 1980, the first universal bank in the PH was inaugurated which is?
PHILIPPINE NATIONAL BANK (PNB)
on January 03 1949, this bank was inaugurated by Miguel Cuadero Sr. serving as its first governoe
CENTRAL BANK OF THE PHILIPPINES
who was the first governor of the CENTRAL BANK OF THE PHILIPPINES?
Miguel Cuadero Sr.
network of various institutions which generates and controls money and credit
FINANCIAL SYSTEM
composed of “all financial institutions, financial markets and instruments, legal and regulatory environment, and financial norms and behavior”
FINANCIAL SYSTEM
money and rights to receive money under specific circumstances
FINANCIAL CLAIMS
evidenced by financial instruments that specify the terms of the claims
FINANCIAL CLAIMS
two types of claims????
DEBTS and EQUITIES
comprise private and public organizations whose assets consist of claims or incomes primarily derived from dealing in and/or performing services in connection with claims
FINANCIAL INSTITUTIONS
transform assets of lender-savers into financial instruments such as loans, mutual funds, and pension funds
FINANCIAL INSTITUTIONS
firms that provide financial services to consumers, businesses, and government units
FINANCIAL INSTITUTIONS
TYPES OF FINANCIAL INSITUTIONS
- private banking institutions
- gov’t banking institutions
- private non-bank financial institutions
- govt non-bank financial institutions
- informal institutions
means of bringing the forces of demand and supply of financial claims
FINANCIAL MARKETS
perform the essential economic function of channeling from households, firms, and government
FINANCIAL MARKETS
FINANCIAL MARKETS
spending less than their income results to?
SURPLUS FUNDS
FINANCIAL MARKETS
spend or intend to consume or invest more than their means
SHORTAGE OR DEFICIT OF FUNDS
FINANCIAL MARKETS
examples
debt and equity markets, primary and secondary markets, money and capital markets (i.e., Philippine Stock Exchange or PSE), futures market, options market, foreign exchange markets, domestic and international markets
composed of government agencies that supervise and/or regulate financial institutions and markets based on existing laws and policies
SUPERVISORY AND REGULATORY AGENCIES
supervise the operations of financial institutions, exercise regular powers over them,
SUPERVISORY AND REGULATORY AGENCIES
evaluate the fin insti’s compliance to requirements, rules, guidelines, and restrictions in the conduct of their business,
SUPERVISORY AND REGULATORY AGENCIES
build transparency and maintain the integrity of the financial system
SUPERVISORY AND REGULATORY AGENCIES
SUPERVISORY AND REGULATORY AGENCIES IN THE PH FINANCIAL SYSTEM
provides policy directions in the areas of money, banking and credit
BANGKO SENTRAL NG PILIPINAS (BSP)
SUPERVISORY AND REGULATORY AGENCIES IN THE PH FINANCIAL SYSTEM
supervises operations of banks and exercises regulatory powers over non-bank fin institutions with quasi-banking functions
BANGKO SENTRAL NG PILIPINAS (BSP)
SUPERVISORY AND REGULATORY AGENCIES IN THE PH FINANCIAL SYSTEM
the national government regulatory agency charged with supervision over the corporate sector, the capital market participants, and the securities and investment instruments market, and the protection of the investing public.
SECURITIES AND EXCHANGE COMISSION
SUPERVISORY AND REGULATORY AGENCIES IN THE PH FINANCIAL SYSTEM
tasked to regulate the sale and registration of securities, exchanges, brokers, dealers and salesmen.
SECURITIES AND EXCHANGE COMMISSION (SEC)
SUPERVISORY AND REGULATORY AGENCIES IN THE PH FINANCIAL SYSTEM
mandated to regulate and supervise the insurance, pre-need, and HMO industries in accordance with the provisions of the Insurance Code,
INSURANCE COMMISSION (IC)
SUPERVISORY AND REGULATORY AGENCIES IN THE PH FINANCIAL SYSTEM
promotes the viability and growth of cooperatives as instruments of equity, social justice and sustainable economic development,
COOPERATIVE DEVELOPMENT AUTHORITY (CDA)
SUPERVISORY AND REGULATORY AGENCIES IN THE PH FINANCIAL SYSTEM
central policy-making and regulatory body mandated to safeguard the State’s ownership rights and ensure that the operations of GOCCs are transparent and responsive to the needs of the public.
GOVERNANCE COMISSION FOR GOCCS (GCG)
implemented to ensure price stability, strong financial system, and economic growth
LAWS AND POLICIES
OBJECTIVES OF THE FINANCIAL SYSTEM (6)
- provide intermediation
- provide loans
- stimulate social and economic development
- reduce strong dependence on foreign fund
- encourage the transformation of savings into investments
- assure that all types of clients have access to fin services
FINANCIAL INSTITUTIONS may be generally classified as??
- banking or depository institutions
- non-bank financial institutions (NBFI’s)`
FINANCIAL INSITUTIONS
BANKING OR DEPOSITORY INSTITUTIONS may be classified according to?
- ownership (private or public)
- place of incorporation (domestic or foreign)
- structure (stock or non-stock)
- management (unit bank, group banking, branch banking, or chain banking)
FINANCIAL INSTITUSIONS
1. private banking institutions
2. gov’t banking institutions
3. private non-bank financial institutions
4. govt non-bank financial institutions
5. informal institutions
which are BANKING OR DEPOSITORY INSTITUTIONS?
1 and 2!!!
FINANCIAL INSTITUSIONS
1. private banking institutions
2. gov’t banking institutions
3. private non-bank financial institutions
4. govt non-bank financial institutions
5. informal institutions
which are NON-BANK FINANCIAL INSTITUTIONS?
3 to 5!!!
TYPE OF FINANCIAL CLAIM
a type of financial claim that does not convey ownership rights
DEBT
TYPE OF FINANCIAL CLAIM
conveys ownership rights
EQUITY
OTHER FINANCIAL SERVICES
advice
automated teller machine (ATM)
electronic payment system (EPS)
local and international remittance
telephone banking
electronic, mobile, and internet banking
online shopping/payment
TYPES OF SAVINGS ACCOUNT
- deposit or transactional savings account
- money market account
- certificate of deposit
TYPES OF SAVINGS ACCOUNT
earn interest, small minimum deposit, highest liquidity, can be transferred to a checking account or used for payment services, comes with an ATM Card
DEPOSIT AND TRANSACTIONAL SAVINGS ACCOUNT
TYPES OF SAVINGS ACCOUNT
larger initial deposit and charges fees if the minimum balance is not maintained, higher interest rate than deposit savings account
MONEY MARKET ACCOUNT
TYPES OF SAVINGS ACCOUNT
lowest liquidity, highest interest rate, depositor selects the duration, term, or maturity of the deposit; reinvestment for interest to compound
CERTIFICATE OF DEPOSIT
GENERAL CLASSIFICATION OF INSURANCE
- life insurance
- non-life insurance
TYPES OF INSURANCE
marine
fire
casualty
life
micro
bank deposit
agricultural