BFI FINALZ M1

deposits

the money placed by individuals or institutions into a bank account. These

funds are entrusted to the bank with the understanding that they can be withdrawn on demand or

after a specified term, depending on the account type.

deposits

primary source of funding for

banks, which they use to issue loans and make investments.

demand deposits

funds that can be withdrawn at any time without prior notice. They are primarily used for daily transactions and

rarely earn interest.

time deposits

the funds be held in the bank for a fixed term, such as 30,

60, 90 days, or even up to 5 years. In return, the bank pays a higher interest rate.

short-term time deposits

Typically have maturities ranging from 30 to 180 days.

long-term time deposits

May extend beyond a year and often come with higher

returns.

primary deposits

May extend beyond a year and often come with higher

returns.

derivative deposits

created indirectly when a bank grants a loan and credits the

amount to the borrower’s account.

safety

Banks provide a secure environment for storing money, significantly reducing the risk

of theft or loss.

convenience

Banking services such as ATMs, debit cards, and mobile apps make fund

management and transactions easier and faster.

earnings or income

Time and high-yield savings deposits provide opportunities to earn

passive income through interest.

accommodation

Having a bank account is often necessary for receiving salaries, loans, or

participating in financial activities such as investing or online shopping.

Receiving Teller

responsible for accepting cash and check deposits,

validating transactions, and issuing receipts.

Paying Teller

Handles withdrawal transactions, ensuring that requests are legitimate and

that the account has sufficient funds. They verify the identity of the client and manage the

secure disbursement of cash.

Fake Money

Tellers use UV lights, watermark verification, and feel tests to identify

counterfeit bills.

Laundered Money

refers to funds that have been acquired through illegal means

stale check

check presented more than six months after its date.

postdated check

check with a future date, not yet valid for encashment.

bounced check

check returned due to insufficient funds or closed accounts.

savings accounts

intended for personal or household savings. They usually offer interest on

deposits and are often accompanied by an ATM card or passbook.

current accounts

designed for frequent and large transactions. They are

commonly used by businesses and professionals. rarely earn interest and often

include features like overdraft facilities and check issuance.

line of credit

a flexible loan arrangement where the bank allows a borrower to access funds up to

a certain limit, as needed.

regular line of credit

A renewable agreement where the borrower may draw and repay

funds continuously within the credit limit.

maximum loan commitment

A fixed ceiling amount that the borrower may draw from over

a period. Once fully utilized, the account is closed or must be restructured.

overdraft line

Linked to a current account, allowing the borrower to issue checks beyond

the account balance up to a pre-approved limit.

loan portfolio

represents the total amount of loans granted by the bank. It is an essential asset

and revenue source.

regulatory bodies

monitor loan portfolios to ensure

stability and prudent lending.

loans and discounts department

This department is responsible for evaluating loan applications, processing documentation,

conducting credit investigations, and approving disbursements. It works closely with other

departments such as legal and compliance to ensure all procedures adhere to banking regulations.

investigation

Gathering data about the applicant's character, capacity, capital, collateral, and

conditions (5Cs of credit).

analysis

Reviewing financial statements, income sources, and credit history.

filing

Organizing the findings into a structured report for reference during the loan approval

and monitoring process.

credit investigation report

consolidates all findings about a borrower’s credit standing. It includes

personal or corporate background, income sources, outstanding debts, payment behavior, and risk

rating.

follow-up

Regular communication with borrowers to remind them of due dates and ensure

they are financially capable of paying.

collection

Employing strategies like auto-debit arrangements, collection agents, or legal

measures in case of default.

General Banking Law of 2000 (Republic Act No. 8791)

Governs the organization and

operations of banks, including limits on loans and lending practices.

The Truth in Lending Act (Republic Act No. 3765)

Requires full disclosure of interest rates

and charges to borrowers.

Credit Information System Act (Republic Act No. 9510)

Mandates the creation of a

centralized credit information system.

Agri-Agra Reform Credit Act of 2009 (Republic Act No. 10000)

Requires banks to allocate a

portion of their loan portfolio to agriculture and agrarian reform beneficiaries.