Week 3 Flashcards
What is the Credit Information System Act (CISA) (RA 9510)
It mandates banks to contribute credit information on their borrowers to a centralized credit information system
What is Republic Act No. 265 also known as?
Central Bank Act of 1948
It established the Central Bank of the Philippines, now known as Bangko Sentral ng Pilipinas.
What institution was created by RA 265?
Central Bank of the Philippines (CBP)
This institution later became known as Bangko Sentral ng Pilipinas (BSP).
What is the primary objective of the CBP (now BSP)?
Maintain price stability and promote sustainable economic growth.
Which presidential decree emphasized the maintenance of domestic and international monetary stability as a primary objective of the CBP?
Presidential Decree No. 72.
What did Presidential Decree No. 1771 accomplish?
Increased the capitalization of the CBP.
What act replaced Republic Act No. 265?
Republic Act No. 7653, the New Central Bank Act.
What powers does the BSP hold?
Supervise banks and regulate finance companies and quasi-banks.
What is the role of the Bangko Sentral ng Pilipinas (BSP)?
Central monetary authority overseeing banking operations and ensuring financial stability.
What law outlines the organization, powers, and obligations of banks?
The General Banking Law of 2000 (Republic Act No. 8791).
What is required under the Anti-Money Laundering Act (RA 9160)?
Banks must report suspicious and covered transactions to the Anti-Money Laundering Council (AMLC).
What does the Credit Information System Act (CISA) mandate?
Banks to contribute credit information on borrowers to a centralized credit information system.
Fill in the blank: The Financial Institutions Strategic Transfer (FIST) Act allows financial institutions to transfer their _______.
bad loans or non-performing assets.
What does the National Payment Systems Act (RA 11127) provide?
A legal framework for the development and regulation of payment systems.
What amount does the Philippine Deposit Insurance Corporation (PDIC) insure per depositor per bank?
PHP 500,000.
True or False: The BSP is responsible for monitoring and prosecuting money laundering cases.
True.
What is the corporate income tax rate for banks under the National Internal Revenue Code (NIRC)?
25% (20% for certain small corporations).
What tax do banks pay on their gross receipts from banking activities?
Gross Receipts Tax (GRT).
What is one requirement of banks under the Know-Your-Customer (KYC) policies?
Verify the identity of their clients.
What is the Single Borrower’s Limit (SBL)?
Limits a bank’s lending to a single borrower to 25% of the bank’s net worth.
What does the Financial Consumer Protection Act (RA 11765) strengthen?
The legal framework for financial consumer protection.
What recent trend has the BSP introduced for banks?
A licensing framework for digital banks.
What do BSP guidelines encourage regarding sustainable finance?
Investing in eco-friendly projects and managing climate-related financial risks.
