FINALS BFI

serve as a set of laws and guidelines that govern the banking industry, ensuring its stability, safety, and transparency.

Banking regulations

Banks must maintain a minimum level of capital level to absorb potential losses, as defined by international standards such as Basel III.

Capital Adequacy

Banking regulations are essential for

protecting consumers
maintaining public confidence in the financial system
mitigating systemic risks

These laws safeguard consumers against unfair practices, ensuring transparency and fairness in financial transactions.

Consumer Protection Law

Requires banks to hold sufficient liquid assets to meet short-term obligations.

Liquidity Requirements Regulations

Banks must implement measures to detect and prevent money laundering and financing of terrorism.

Anti-Money Laundering (AML ) Regulations

play a pivotal role in a nation’s economy and banking system.

Central banks

They are responsible for implementing monetary policy, overseeing the banking sector, and ensuring financial stability.

Central banks

Key Functions of Central Banks

Monetary Policy Implementation
Lender of Last Resort
Financial Stability
Regulatory Oversight

Central banks control inflation a influence economic activity through interest rate adjustments and open market operations.

Monetary Policy Implementation

They provide liquidity to financial institutions in distress, preventing bank runs and promoting stability in the banking system.

Lender of Last Resort

They monitor and assess risks to the financial system, taking action to mitigate potential threats.

Financial Stability

Central banks supervise commercial banks to ensure compliance with regulations and sound banking practices.

Regulatory Oversight

Bangko Sentral ng Pilipinas (BSP) The central bank of the Philippines, responsible for

monetary policy
regulation
supervision of banks and financial institutions

Functions of BSP

• Implements monetary policy to maintain price stability.

• Regulates banks and non-bank financial institutions.

• Ensures the stability of the financial system.

• Manages the country's foreign reserves and oversees payment systems.

Regulates the securities industry and enforces securities laws to protect investors.

Securities and Exchange Commission (SEC)

Securities and Exchange Commission (SEC) functions

• Oversees the registration of securities and regulates stock exchanges.
• Monitors corporate governance and compliance among publicly listed companies.
• Conducts investigations into violations of securities laws.

in the Philippines plays a crucial role in combating money laundering and terrorist financing

Anti-Money Laundering Council (AMLC)

Anti-Money Laundering Council (AMLC) functions

• Monitors and investigates suspicious financial transactions.
• Implements policies to prevent money laundering and terrorist financing.
• Works with financial institutions to enhance compliance with AML regulations.

Key elements of corporate governance

Board of Directors
Transparency and Disclosure
Risk Management Framework
Regulatory Compliance

Responsible for setting the bank’s strategic direction and overseeing risk management practices.

Board of Directors

Banks are required to provide accurate and timely information to stakeholders to promote accountability and trust.

Transparency and Disclosure

Establishes policies to identify, assess, and mitigate financial risks, ensuring long-term sustainability.

Risk Management Framework

Adherence to laws and regulations is critical to prevent legal issues and protect the institution's reputation

Regulatory Compliance

is a network of various institution and market which generates, circulates and controls money and credit. It provides intermediation between the suppliers and users of credit.

Financial System

KEY COMPONENTS OF PHILIPPINE FINANCIAL SYSTEM

Financial Institutions
Financial Markets
Financial Instruments
Financial Services
Financial Practices
Financial Transactions

The Bangko Sentral ng Pilipinas (BSP) was created by the Republic Act No. __________, otherwise known as the New Central Bank Act of ______.

7653, 1993

Enjoys fiscal and administrative autonomy from the National Government in the pursuit of its mandated responsibilities.

Bangko Sentral ng Pilipinas (BSP)

BANGKO SENTRAL NG PILIPINAS FUNCTIONS

Liquidity Management
Currency Issue
Lender of Last Resort
Financial Supervision
Management of Foreign Currency Reserves
Determination of Exchange Rate Policy

The Thrift Banks:

The Savings and Mortgage Banks
The Savings and Loan Association
The Private Development Banks
The Rural Banks

Private Non-Bank Institutions

Investment HouseBanks
Securities Broker/Dealer
Building and Loan Assocations
Credit Union
Private Insurance
Pawnshop
Non-Stock Savings and Loans Association
Trust Companies
Financing Companies
Other Non-Bank Financial Institutions