Regulation of the Financial System

Flashcards covering key terms and definitions related to the regulation of the financial system, with a focus on consumer protection, banking regulations, and crisis responses.

Regulation of Financial System

The oversight and management of banks, insurance companies, capital markets, and other financial institutions to ensure stability and protect consumers.

Bangko Sentral ng Pilipinas (BSP)

The central bank of the Philippines responsible for monetary policy, bank supervision, and ensuring financial stability.

Capital Adequacy Ratio (CAR)

A measure of a bank's capital as a percentage of its risk-weighted assets; the minimum CAR is set at 10% by the BSP.

Liquidity Management

The process by which banks ensure they have enough cash or easily accessible funds to meet short-term obligations.

Consumer Protection

Regulations and measures to safeguard consumers from unfair practices in financial transactions.

Truth in Lending Act

A law that ensures consumers are aware of all terms and costs associated with financial products.

Philippine Deposit Insurance Corporation (PDIC)

An agency that insures bank deposits up to ₱500,000 per depositor per bank in the Philippines.

Anti-Money Laundering (AML)

Regulations that prevent the use of banks for hiding illegally obtained money.

Dodd-Frank Act

A US law enacted in response to the 2008 financial crisis, designed to increase transparency and reduce risks in the financial system.

Basel III

An international regulatory framework that sets standards for bank capital adequacy, stress testing, and liquidity.

Federal Reserve System

The central banking system of the United States that implements monetary policy and regulates banks.

Consumer Financial Protection Bureau (CFPB)

A US agency created by the Dodd-Frank Act to oversee financial products and protect consumers.

Volcker Rule

A provision of the Dodd-Frank Act that limits banks' ability to engage in proprietary trading.

Electronic Wallets

Digital systems that allow individuals to make transactions electronically, often used in cashless payments.