MIDTERM EXAM - BFI

CENTRAL BANKS

banks of all banks

CENTRAL BANKS

they are the one who is responsible to and has the capability to increase or decrease interest rates

maintain price stability

What is the PRIMARY OBJECTIVE of the BSP?

REPUBLIC ACT NO. 7653

The New Central Bank Act

Republic Act No. 265

The Central Bank Act

Promotion of economic development

Maintenance of internal and external monetary stability

What are the objectives of the RA 265?

July 3, 1993

Republic Act No. 7653 was passed establishing the Bangko Sentral ng Pilipinas, replacing CBP as country’s central monetary authority

PHILIPPINE NATIONAL BANK

Before the establishment of the Central Bank of the Philippines, what institution functioned as de facto central bank?

SEVEN

How many members constitute the Monetary Board?

5

How many full-time members from the private sector are part of the Monetary Board?

PRESIDENT OF THE PHILIPPINES

Who appoints the members of the Monetary Board?

MONEY

anything authorized by law

MONEY

accepted as a medium of exchange

MONEY

one form in which we keep our wealth

MONEY

is a currency and a coin

MONEY

guaranteed as a legal tender by the government

GENERAL ACCEPTABILITY

DURABILITY

PORTABILITY

DIVISIBILITY

STABILITY OF MONEY VALUE

What are the CHARACTERISTICS OF GOOD MONEY?

MEDIUM OF EXCHANGE

UNIT OF ACCOUNT

STORE OF VALUE

STANDARD OF DEFERRED PAYMENT

State the 4 functions of Money

GOVERNMENT BANKS

owned and managed by government

public banks

LANDBANK

DEVELOPMENT BANK OF THE PHILIPPINES

OVERSEAS FILIPINO BANK

AL-AMANAH ISLAMIC INVESTMENT BANK

GIVE THE FOUR KEY GOVNT BANKS

GLASS-STEAGAL ACT, 1933

What Act and what year does the commercial and investment banking got separated?

GRAMM-LEACH-BLILEY ACT, 1999

What Act and what year does the universal bank allowed broader services?

DODD-FRANK ACT, 2010

this is an act where they imposed limits on speculative trading

RURAL BANKS ACT OF 1952 (RA 720)

Rural Bank was established under ____________ act of 1952

PHILIPPINE DEPOSIT INSURANCE CORPORATION

PDIC Stands for?

savings and loan association

Thrift banks is also known as

MSMEs

Households

Underbanked populations

ENUMERATE THE PRIMARY TARGET MARKETS OF THRIFT BANKS

Capital Limitation - rural banks are hard to expand because of capital limitation

Need for Consolidations - some rural banks merge to achieve compliance with BSP

Enumerate TWO LIMITATIONS of RURAL BANKS

Bangko Sentral ng Pilipinas

Securities and Exchange Commission

Philippine Deposit Insurance Corporation

ENUMERATE THE AGENCIES THAT SUPERVISE OR REGULATE BANKS IN THE PHILIPPINES

Savings accounts

Checking accounts

Enumerate the DEPOSIT PRODUCTS usually offered by banks

In times of economic crisis, banks, financial institutions, and Philippine Deposit Insurance Bank play an important role in maintaining financial stability and protecting the public’s trust. Government banks like Landbank of the Philippines and Development Bank of the Philippines help provide lendings to agricultural sectors and MSMEs, commercial banks adjust credit conditions and liquidity, thrift and rural banks keep finance accessible to local communities, and PDIC provide deposit insurance and resolve failed banks to prevent panic. However, these banks still have limitations and not crisis-ready incase something happens. Their targeted reforms must be rearranged so that in case of major crisis, they are well-prepared and not cause panic.

In times of economic crisis (high inflation, recession, or banking industry) , what role do banking and financial institutions such as government banks, commercial banks, thrift banks, and rural banks, and the PDIC play in maintaining financial stability and protecting the public’s trust? Site specific examples and critically analyze whether current mechanisms in the Philippine banking system are sufficient, or if reforms are needed.

June 15, 1948

When was Central Bank Act was signed into law?

January 3, 1949

Date where CBP inaugurated