SPECIAL TOPICS

For Midterm Examination

February 27, 2025

Pag-ibig released their increased interest rate for their MP1.

MP1

Usual deductions from salaries of employees. From 50.00 to 100.00 and finally increased to 200.00. Employer and employee can divide the payment by 50-50 every 15/30.

Interest Rate for MP1

6.60

Interest Rate for MP2

7.1% / 7.10%

Soft Investment

Financial Markets, Financial Wallets, and Bitcoins

Hard Investment

Business Products, Tangible Assets (Cars), and Franchises

MP

Modified Pag-Ibig Housing Loan Program in the Philippines that provides affordable financing options.

PDIC

Philippine Deposit Insurance Corporation is a government agency that protects depositors by insuring deposits in member banks up to a certain limit.

HDMF

Home Development Mutual Fund provides savings and housing loan programs for members in the Philippines.

SC and IE

Service Charge and Interest Rate. Banks only have 1% of IE with added SC.

TD

Time Deposit an interest-earning account held at a financial institution that requires funds to be locked in for a specified term. Usually part of money market.

Bank Book

Bank Recon and Book Recon. Passbook and Checkbook are financial papers. Checkbook is deducted with IM and it wont be deducted immediately in passbook or atm unless withdrawed.

“On Us” Check

From Landbank to Landbank. It is a check that is drawn on and deposited at the same bank.

Manager’s Check / Cashier’s Check

From Landbank to BDO

Cross Check

“Two parallel lines” means it is now prohibited that the check can be negotiated. Therefore, this check can only be deposited in the name stated herein.

No checks with erasures

Folds, Discounting, Endorsed

Outstanding Check

A check that has been written but not yet cashed or deposited. A pending transaction that has not been deducted from the issuer’s account. Since it is not cleared yet, it will go through PCHC.

PCHC

Philippine Clearing House Corporation. They clear the check upon deposit that takes up to 3-5 days but now, it can be cleared immediately.

Bouncing Check

A check that a bank cannot process because there are insufficient funds in the account. It can also be called as “rubber check”

Fraud by withdrawing without sufficient fund

ESTAFA (Article 815 of the Revised Penal Code)

DAIF

Drawn Against Insufficient Funds

DAUF

Drawn Against Uncleared Funds

PDIC Amount

500,000 then increased to 1,000,000

Bank Run

Occurs when large number of depositors withdraw their funds from a bank simultaneously. Whichever the account is ensured, that’s the account that’ll be covered.

Cash Reserve

Minimum amount of cash that banks are required to hold, to meet potential withdrawal demands and ensure stability. Financial safety net

In Bank Run, banks must pay to

Outside Creditors, Inside Creditors, Proportionate to whats left will be paid by company. If company lacks payment, PDIC will pay, 500,000-1,000,000.

PHILHEALTH

Philippine Health Insurance Corporation

UHCL

Universal Health Care Law or known as Universal Health Care Act (UHC Act) of Republic No. 11223. This aims to ensure that all Filipinos have access to quality, affordable health care.

SE

Self Employed. Government will slightly earn but they only deduct tax. Government - BIR - DOF- DOBM - National Gov - Makati - Brgy

GAA

General Appropriations Act. Covers the annual operating requirements of agencies of government.

SSS

Social Security System. Amount for SE is 5,230/month. For employer, 2,000 + / month

Personal Finance

Budgeting with Taxes and Salaries

GOCC

Government Owned and Controlled Corporation. A business entity owned and controlled by the government, operating under its own charter but subject to government oversight.

Maharlika Investment Fund

Sovereign Fund. A bank with the state’s fund / sovereign wealth fund. Acts as surplus reserve.

Types of Finance

Personal Finance, Public Finance, Corporate Finance

AMLA 9160

Anti-Money Laundering Act of 2001

Withdrawal Limit

50,000, if higher, call the banks first.

Null Check

If the check is damaged.

Stale Check

A check if the date is over that limit are considered stale. Over the due date

Post-Dated Check

One that is written with a future date indicated on it.

CIC

Credit Information Corporation. Provides crefit offeri

BIR

Bureau of Internal Revenue. RTB Retail Treasury Bonds. Under DOF (Department of Finance). Located at Intramuros

Types of Insurance Exam (500 pesos)

Life Insurance, Traditional Insurance, General Insurance

ARTA

Anti Red Tape Authority

Chief Finance Officer (CFO)

a senior executive responsible for managing a company's financial operations, including financial planning, risk management, and reporting, ultimately ensuring the company's financial health

Chartered Financial Analyst (CFA)

considered a highly distinguished professional in the world of finance and possesses a deep understanding of investment management and financial

Securities and Exchange Commission (SEC)

oversees securities exchanges, securities brokers and dealers, investment advisors, and mutual funds in an effort to promote fair dealing, the disclosure of important market information, and to prevent fraud.

Philippine Stock Exchange (PSE)

a self-regulatory organization, is the national stock exchange of the Philippines, providing a platform for buying and selling securities, and facilitating capital raising for businesses. 

Chartered Institute for Securities and Investment (CISI)

a professional body for members of the financial and investment profession. It offers qualifications and resources for professional development, as well as setting standards of conduct and ethics for those in the industry.

Maximum Number of Investment/Debt

100,000

Largest Bank

BSP

Types of Market

Money Market and Capital Market and FOREX Market

Types of Banks

Universal, Commercial, Thrift, Retail, Investment

Two Certain Things in the World

Death and Tax

PTR

Professional Tax Receipt

FSO AND DFA

Foreign Service Officer (Exam) then proceed to Department of Foreign Affairs

DILG

Department of Internal and Local Government

Real Estate Brokers

Can take sa PRC, included sa types of exam

Types of Government Owned Banks

Landbank, Developmental Bank, Philippine National Bank

Role of Finance in an Organization

Investment Liberation

Income - Savings = Expense. Ability to have salary and invest

Two Ways of Business

Hard and Soft Investment

FUNDAMENTAL ANALYSIS

Two Ways to analyze the business

Fundamental and Technical