DOLOJO group 4?

agreed to conduct business and divide

the profits among themselves.
ATM (Automated Teller Machine)
5. CORPORATE ACCOUNT
-the use of automated teller machines
for depositing and withdrawing money - this type of account is opened by
opened a new method for banks to corporations in the conduct of its
obtain branches. business.

TYPES OF BANKS ACCOUNTS 6. FIDUCIARY ACCOUNT

1. SINGLE-NAME INDIVIDUAL - this account is opened by a trustee in

ACCOUNT behalf of another person.

-the simplest type of bank account 7. UNINCORPORATED GROUP OF

wherein an individual transacts with the ACCOUNTS
bank under his own name. - an account that is opened by
2. JOINT ACCOUNT associations, social , clubs , civic
oraganizations , professional , and
- this account is opened by two or charitable organizations.
more individuals. There are two or more
depositors under one account. Joint Inactive Deposit Account ( Dormant
account has two forms: Account)

A. Joint "and" account - this is an account which does not

have any activity through deposits or
- where all depositors have to affix withdrawals over a period of time.
their signature in all transactions with
the bank. Insurance on Deposit

B. Joint "or" account - for the protection of the depositors ,

Republic Act No. 3591 was approved.
- where any one of the depositors is This law provides the establishment of
authorized to transact with the bank. the Philippine Deposit Insurance
Corporation (PDIC) which ensures
3. SOLE PROPRIETORSHIP
deposits maintained in member banks.
- an account that is opened by an
B. TRUST FUNCTION
individual for his own business.
- a banking institutions does the trust
4. PARTNERSHIP ACCOUNT
business that is it can be authorized to
- this account is opened by a engaged in the business of a trust
partnership. It is an organization, which company.
is composed of two or more owners who
  Safe Deposit Boxes  Character/ clean loan

- another trust service that a bank offers - short -term type of loan.
is the safe deposit box. The bank rents
out the box to a client who would like to  Collaterized loan
have a safe place to put his important - for loan whose payment is longer than
documents and precious jewelry. one year.
C. COLLECTION AND REMITTENCE  FORECLOSURE
FUNCTION
- process of enforcing the lien on the
- a bank acts a collection agent and in
property pledged by selling the property
return for its services rendered the bank
at auction, in order to recover the money
collects a service fee from its clients.
lent and all the expenses incurred in the
 Concentrating Banking process.

- a system that spreads collection of

company receivables among a number E. ADVISORY FUNCTION
of banks located at strategic areas.
- many distressed enterprises seek the
help of banks with regard to refinancing
D. LOANS AND DISCOUNT their business. The banks employ
FUNCTION experts to assist businessmen in their
needs.
- As a financial intermediary , banks do
not only accepts deposits but also ESOMA group 5?
extends loans.
Classifications of Banks
TYPES OF LOANS GRANTED BY
BANKS Presidential Decree No. 71, Republic
Act 337, now amended Republic act
1. DEMAND or CALLABLE LOAN 1948, states that for purposes of
uniformity, simplicity a equality of
- this is a loan that does not have a
treatment, banking institutions in the
definite maturity date and therefore , is
Philippines shall be classified in the
subject to payment anytime the bank
following general categories.
deems it payable.
Commercial Banks
2. TIME LOAN
Commercial Banking Corporation shall
- this type of loan may be short- term,
be any corporation, which accepts or
medium- term, or long -term which is
creates demand deposits subject to
payable at a specified future time.
withdrawal by check. Only commercial
banks may accept or create demand (b) Open current or checking accounts:
deposits. Any other bank, which has provided, that the thrift bank has
been hereto authorized by the Central
Bank to ac^ t demand deposits, may net assets of at least twenty million
continue accepting demand deposits on pesos (P20 million) and subject to
the discretion of the Monetary Boards Sch guidelines of the Monetary Board.
amended by PD no. 71). A commercial They shall be allowed to
banking corporation in addition tothe
general powers incident to corporations directly clear its demand deposit
shall have all such powers as shallbe operations with the BangkoSentral
necessary to carry on the business of
and the Philippine Clearing House
commercial banking by
Corporation;
accepting(asdrafts and issuing letters of
credit, by discounting and negotiating ( c ) Act as a correspondent for other
promissorynotes, draft. bills of financial institutions;
exchange, and other evidences of
debts; by receivingdeposits: by buying (d) Act as a collection agent for
and selling foreign exchange and gold government entities, including but not
or silver bullion,and by lending money
limited to, the Bureau of Internal
against personal security or against
Revenue (BIR), Social Security
securities consistingof personal property
or mortgages on improved real estate System (SSS), and the Bureau of
and the insuredthereonimprovements Customs;

Thrift Banks (e) Act as official depository of national

agencies and of municipal, city
these are banks established to
encourage thriftiness industry,frugality, or provincial funds in the municipality,
and the accumulation of savings among city or province where the
the people. Thrift banks should be
organized in the form of stock thrift bank is located, subject to
corporations and with a certificate of guidelines as may be established by
authority to operate from the Monetary the Monetary Board;
Board of the Central Banks. It shall be
capitalized as follows: with head office in (f)Rediscount paper with the Land Bank
Metro Manila, P420 million; with head of the Philippines, the
office outside Metro Manila, P64 million.
Development Bank of the Philippines
The powers granted under the General and other government owned
banking Act to thrift banks are asfallows:
and controlled corporations:
(a) Accept savings and time deposits;
(g) issues mortgage and chattel monetary board may determine as
mortgage certificates, buy and sell them necessary in the furtherance of their
economic objectives. Generally, they
8for their own account or for the account specialize in granting industrial loans.
of others or accept and They may also lend money against
receive them in pavement or as security of jewelry, precious stones, and
amortization of its loans; articles of similar nature subject to such
rules and regulations by the monetary
(h) Engage in quasi-banking and money board.
market operations,
Savings and mortgage banks may, with
(i) Open domestic letters of credit; the approval of the Monetary Board,
issue mortgage and chattel mortgage
(j) )Extend credit facilities to private and
certificates, buy and sell them for their
government employees: and
own account or for the account of
(k) Extend credit against security of others, and accept and receive them in
jewelry, precious stones and articles as payment or as amortization of loans.
the of similar nature, subject to such Such mortgage and chattel mortgage
rules and regulations Monetary Board certificates shall be issued exclusively in
may prescribe. national currency and exclusively for the
financing of equipment loans, mortgage
Thrift banks are sub-classified as loans, for the acquisition of machinery
follows: and other fixed installations,
conservation, improvement of
Savings and Mortgage Banks: These
productive properties and real estate
banks are organized for the purpose of
mortgage loans. The bank shall
accumulating the savings of individuals
coordinate the amounts and maturities
and investing them together with their
of their certificates with those of their
capital in readily marketable bonds and
loans so as to ensure adequate cash
debt securities, commercial papers and
receipts for the payment of principal and
account receivables, drafts, bills of
of interest at the time they become due.
exchange, acceptances, or notes arising
out of commercial transactions or in Stock Savings and Loan Associations
loans secured by bonds, mortgage on shall include any corporation engaged in
real estate, and insured improvements the business of accumulating the
thereon, and other forms of security, or savings of depositors and together
in loans for personal or household
finance whether secured or unsecured, with its accumulated capital, give these
and financing for home building and out for loans and for investment in
home development and in such other securities of the government and any of
investments and loans which the its political subdivisions, and
instrumentalities. Stock Savings and
Loan Associations may also issue 1. Accept savings and time deposits.
domestic letters of credit. They shall
primarily be engaged in servicing the 2. It can open current and checking
needs of households by providing accounts provided the rural bank has
personal finance and long-term net assets of at least P5 million, subject
financing for a house and for to such guidelines as may be
development of industries. established by the Monetary Board.

Private Development Bank these are 3. The rural banks act as correspondent
banks organized to expand, develop, bank for other financial institutions.
construct, and rehabilitate our 4. Act as a collection agent.
agriculture and industry. They place
Private Development Banks within the 5. Act as official depository of municipal,
easy reach of the people, medium and city or provincial funds in the
long-term credit facilities at reasonable municipality, city or province where it is
cost. located subject to such guidelines as
may be established by the Monetary
Rural Banks Board.
Rural Banks are organized to promote 6. Rediscount paper with the Land Bank
and expand the rural economy in on of the Philippines, the Development
orderly and effective manner by Bank of the Philippines or any other
providing farmers and small banking institution including its Extend
businessmen with means of facilitating financial assistance to private and public
and improving their productive facilities. employees in accordance With written
It lends out to cooperatives on permission of the Monetary Board of the
reasonable terms. In granting the loans, Central Bank, any branches and
rural banks shall give preference to the agencies.
applications of farmers and merchants
whose cash requirements are small. 7. with Section 5 of RA 3779 as
Loans may be granted by rural banks on amended.
security of land without Torrens Title
8. rural bank may act as trustee over
where the owner of private properties
estates or properties of farmers and
can show five years or more of peaceful,
merchants.
continuous and uninterrupted
possession of the property in the Specialized Government Banks of the
concept of ownership. Rural banks may Philippines
be allowed to accept demand deposits
only with the special approval of the 1. Land Bank of the Philippines
BangkoSentral ng Pilipinas.
The Land Bank of the Philippines is
Services Performed by Rural Banks established as a corporate and
government instrumentality. Its main Islamic banking. The Islamic bank
purpose is to help implement the land isauthorized to accept deposit from
reform in the Philippines known as the government banks. organizations or
Comprehensive Agrarian Reform other entities and individuals from within
Program (CARP). It buys farmlands the Philippines or abroad which shall
under the CARP from the landowners form under any of the following non-
and distributes these to tenants or interest bearing placements:
farmers. These lots are amortized by the
tenant farmer with the Land Bank of the 1. Savings accounts:
Philippines for a certain period of time. 2. Investment participation accounts:
2. Development Bank of the Philippines and

The Development Bank of the 3. Current accounts and other deposit

Philippines is the government counter- liabilities:
part of the private development banks. It INESTOES group 6?
aims to develop, expand, construct, and
rehabilitate our agricultural industry. Offshore Banking Unit- A bank shell
branch located in another international
financial center. -make loans in the
3. Al-Amanah Islamic Investment Bank Eurocurrency markets when they accept
of the Philippines deposits from foreign banks and other
OBUs. FUNCTIONS OF OBUs 1.
The Al-Amanah Islamic Investment Transaction with non-residents or with
Bank, or the Islamic Bank, is primarily other OBU. 2. Transactions with foreign
established to promote and accelerate currency deposit unit. 3. Transaction
the socio-economic development of the with other than FCDU and OBU.
autonomous region of Mindanao by
performing banking, financing and CLASSIFICATION according TO FORM
investment operations and to establish OF ORGANIZATION
and participate in agricultural, 1. UNIT BANK-is a single banking
commercial and industrial ventures corporation which makes and
based on the Islamic conceptof banking, implements its own policies. IT has one
subject to the rules of Islamic shari'a. place of business.
The Islamic Bank has an authorized
capital of P 1 billion divided into ten 2. BRANCH BANKING- Is a multiple
million par value shares of P100.00 office banking system. A bank with
each. The subscription of ownership branches and extention offices located
ofsuch shares including the transfer in the various places.
thereof to third parties shall be limited to
3. GROUP BANKING- these are unit
persons and entities to the concept of
bank or branch banks whose majority
shares of stock are held by a holding 1. SAVINGS DEPOSITS-this is a
company. deposit accepted for safekeeping

4. CHAIN BANKING- these are 2. DEMAND DEPOSIT- this is a

independent unit banks which are deposit that may withdrawn anytime
owned by a group of people. by presenting a check.

TRADITIONAL CLASSIFICATIONS OF (MANUAL OF REGULATIONS FOR

BANKS BANKS ON DEPOSIT AND
BORROWING OPERATION as of
1. PRIVATELY OWNED BANKS- these dec. 31, 1996) Section X201
are banks owned by private individuals. authority to accept or create demand
2. GOVERNMENT OWNED BANKS- deposit EKB/KB- may accept or
these are banks owned by the state or create demand deposits subject to
banks with a minimum private capital withdrawal, without prior authority
like PNB, LBP, DBP, AIIBP, and CBP. from BSP. TB/RB/COOP BANK-
may accept or create demand
ACCORDING TO THE PLACE OF depositsupon prior authority of the
INCORPORATION BSP. Section X202 Temporary over-
drawings; drawings against
1. DOMESTIC BANK- this is a bank
uncollectected deposits Section
incorporated under the laws of the
X203 Checks without sufficient funds
country.
Section X204 Current accounts of
2. FOREIGN BANKS- this bank is bank officers and employees
incorporated under the laws of other
MAGPOSAO – GROUP 7
countries that do business in the
Philippines. CHAPTER 9 COMMITTEES
ASSOCIATED BY THE BOARD OF
FUNCTIONS OF A BANK
DIRECTORS: 1. EXECUTIVE
A. DEPOSITORY- banks accept COMMITTEE- it deals with the
deposits in many forms of administrative matters. It acts as the
checks, cash, money orders, and advisory body to the board in matters
items for collection. pertaining to the general conduct of
the business such as: 1. Hiring of
CLASSIFICATION OF DEPOSIT executive officers and determining
ACCORDING TO DIFFERENT their remuneration 2. Removal of
CRITERION; such officers may be deemed
necessary by the committee 3.
1. deposits from private sector
Discussing and reviewing any
2. Deposits from the government general matter pertaining to
According to the form of withdrawal administration affairs of the bank 4.
Discussing, reviewing and making
recommendations for the adoption in
the major changes of the bank's
procedure 5. Identifying and finding
solutions to tha problems wherein
the area of responsibility 2.LOANS
AND DISCOUNT COMMITTEE- it
reviews , approves or disapproves
loan application submitted to it in line
with the BOD's established policy. It
determines from time to the Rate of
interest to be paid on time and
savings deposits. 3. INVESTMENT
COMMITTEE- it concerns with the
bank's investment portfolio. This
committee determines the amount
and percentages of demands and
time deposits and capital fund of the
bank. It approves the purchase and
sale of securities from the bank's
investment portfolio. 4. TRUST
COMMITTEE- it deals with the
fiduciary function of the bank. The
function of this committee is to
accept or reject all new accounts in
which the bank is to act in a fiduciary
capacity, to approve of disapprove
the investment of all funds in trust
accounts and to see to it that the
bank is performing in accordance
with the terms and conditions of the
trust indentures of the trust
agreement. 5.EXAMINATION
COMMITTEE- in charge of
identifying all problems in connection
with the audit and examination of the
bank, finding solutions and making
recommendations to the board of
directors.