75736681-Banking-Notes.pdf

Banking with Raffy Morales 2nd Semester, 2007-2008

 The Three Regulatory Authorities in the hili!!ines "# Bangko Sentral ng ili!inas $BS% - regulatory authority for &anks - e'er(ises e'er(ises regulator regulatory y authorit authority y o)er non-&ank non-&ank finan(ial finan(ial institut institutions ions $*B+% $*B+% to the the e'te e'tent nt that that the the latt latter er ha)e ha)e uasi-&anking fun(tions - !ro)ides !oli(y dire(tions for money, &anking, and (redit •

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*B.+ / non-& *B.+ on-&a ank finan inan( (ial ial institut institutions ions with uasi-&an uasi-&anking king fun(tions *BB *B BS+ S+ / non-& on-&an ank k &ang angko sent entralral-rregu egulate lated d fin finan( an(ial ial institutions

2# nsuran(e ommission su!er)isional authority insuran(e (om!anies 1# Se(urities ommission •

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and

o)er

'(hange

 The BS is the (entral monetary authority in the (ountry#  The entral Bank of the hili!!ines (ontinues to e'ist as B Board of 3iuidators# 3iuidators#

Banking nstitutions "# ommer(ial Bank $4B% 2# 5ni)ersal Bank $5B% - 4B 6 fun(tions as in)estment house 6 in)ests in non-allied undertaking does away with (om! (om!ar artm tmen enta tali lia ati tion on of &ank &ankin ing g institutions - (an !erform all fun(tions of a &ank 1# '!anded ommer(ial Bank $4B% •

a!i a!ita tali lia ati tion on of 4B and and 5B high higher er than than othe otherr &ank &anks# s# t is h#9 h #9:B :B and h h2# 2# !aid !aid u! (a!ital for 5B and 4B, res!e(ti)ely#

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a!italiation of determined &y reuirements#

&anks Basel

is 

Before "980;  The were no 5Bs &e(ause the e'isting !aradigm was the