Podcast
Questions and Answers
The study on banking and financial institutions aims to investigate the pivotal role these entities play in shaping the ______ and financial landscape.
The study on banking and financial institutions aims to investigate the pivotal role these entities play in shaping the ______ and financial landscape.
economic
For BSBA students, gaining deeper insights into the banking sector is invaluable, as it equips them with the knowledge and skills necessary to navigate and contribute effectively to the ______ industry.
For BSBA students, gaining deeper insights into the banking sector is invaluable, as it equips them with the knowledge and skills necessary to navigate and contribute effectively to the ______ industry.
financial
The study highlights the BSP's pivotal role in maintaining the ______ and growth of the Philippine economy.
The study highlights the BSP's pivotal role in maintaining the ______ and growth of the Philippine economy.
stability
By examining the Central Bank's strategies and interventions, this study seeks to provide insights into how it addresses challenges such as ______ control, exchange rate stability, and the modernization of the banking sector.
By examining the Central Bank's strategies and interventions, this study seeks to provide insights into how it addresses challenges such as ______ control, exchange rate stability, and the modernization of the banking sector.
The Central Bank of the Philippines, formally known as the ______, is the country's central monetary authority.
The Central Bank of the Philippines, formally known as the ______, is the country's central monetary authority.
In 1993, the Bangko Sentral ng Pilipinas replaced the original Central Bank through the New Central Bank Act (Republic Act No. ______), which provided greater autonomy in monetary policymaking.
In 1993, the Bangko Sentral ng Pilipinas replaced the original Central Bank through the New Central Bank Act (Republic Act No. ______), which provided greater autonomy in monetary policymaking.
The BSP operates with a primary goal of achieving and maintaining ______ stability to foster economic development.
The BSP operates with a primary goal of achieving and maintaining ______ stability to foster economic development.
The BSP aligns with international monetary and financial standards while adapting them to the unique needs of the Philippine economy. It collaborates with global organizations like the ______ Monetary Fund (IMF) and the World Bank.
The BSP aligns with international monetary and financial standards while adapting them to the unique needs of the Philippine economy. It collaborates with global organizations like the ______ Monetary Fund (IMF) and the World Bank.
The BSP aims to maintain stable prices by controlling inflation and ensuring that the purchasing power of the ______ remains consistent over time.
The BSP aims to maintain stable prices by controlling inflation and ensuring that the purchasing power of the ______ remains consistent over time.
The BSP has the exclusive authority to issue the ______, ensuring that the currency is durable, secure, and reflective of the country's sovereignty.
The BSP has the exclusive authority to issue the ______, ensuring that the currency is durable, secure, and reflective of the country's sovereignty.
The ultimate goal of the BSP is to foster a ______ and sustainable economic environment that supports economic growth, employment generation, public confidence, and financial inclusion.
The ultimate goal of the BSP is to foster a ______ and sustainable economic environment that supports economic growth, employment generation, public confidence, and financial inclusion.
At the top of the BSP's organizational structure is the ______, the governing body that oversees its operations.
At the top of the BSP's organizational structure is the ______, the governing body that oversees its operations.
The BSP operates regional offices and branches to extend its reach and provide banking and currency management services ______.
The BSP operates regional offices and branches to extend its reach and provide banking and currency management services ______.
The Central Bank plays a vital role in economic development by ensuring monetary stability, promoting growth, and fostering a ______ financial system.
The Central Bank plays a vital role in economic development by ensuring monetary stability, promoting growth, and fostering a ______ financial system.
The Central Bank maintains price stability, a critical factor for sustainable ______ growth, by regulating money supply and credit.
The Central Bank maintains price stability, a critical factor for sustainable ______ growth, by regulating money supply and credit.
Central banks set a target ______ rate (often between 2-4%) to ensure price stability, which is essential for long-term economic growth.
Central banks set a target ______ rate (often between 2-4%) to ensure price stability, which is essential for long-term economic growth.
Central banks use tools like the benchmark ______ rate to influence borrowing, lending, and spending behavior in the economy.
Central banks use tools like the benchmark ______ rate to influence borrowing, lending, and spending behavior in the economy.
The Central Bank buys and sells government ______ in the open market to control the money supply, which is a key tool to regulate inflation and manage liquidity.
The Central Bank buys and sells government ______ in the open market to control the money supply, which is a key tool to regulate inflation and manage liquidity.
Central banks impose reserve requirements on ______ banks, which mandates that a certain percentage of deposit liabilities be held in reserve.
Central banks impose reserve requirements on ______ banks, which mandates that a certain percentage of deposit liabilities be held in reserve.
Central banks may implement policies to manage the ______ rate and build foreign exchange reserves to maintain currency stability and support international trade and investment.
Central banks may implement policies to manage the ______ rate and build foreign exchange reserves to maintain currency stability and support international trade and investment.
Many central banks implement a ______ insurance system to protect consumer deposits in case of bank failures, which boosts public confidence in the banking system.
Many central banks implement a ______ insurance system to protect consumer deposits in case of bank failures, which boosts public confidence in the banking system.
The BSP faces the challenge of safeguarding the financial system from cyber threats and data breaches as the financial sector increasingly moves towards ______ platforms.
The BSP faces the challenge of safeguarding the financial system from cyber threats and data breaches as the financial sector increasingly moves towards ______ platforms.
The BSP must adapt its strategies to emerging issues and future needs to remain effective in an ever-evolving global and ______ landscape.
The BSP must adapt its strategies to emerging issues and future needs to remain effective in an ever-evolving global and ______ landscape.
Monitoring and managing the risk of increasing ______loans due to economic disruptions like the COVID-19 pandemic, poses challenges for financial institutions.
Monitoring and managing the risk of increasing ______loans due to economic disruptions like the COVID-19 pandemic, poses challenges for financial institutions.
While adapting to evolving ______ standards presents both a challenge and an opportunity for strengthening the financial system.
While adapting to evolving ______ standards presents both a challenge and an opportunity for strengthening the financial system.
The growing demand for sustainable finance and green bonds requires the BSP to integrate environmental, social, and ______ criteria into its financial oversight and policy framework.
The growing demand for sustainable finance and green bonds requires the BSP to integrate environmental, social, and ______ criteria into its financial oversight and policy framework.
The BSP will continue to refine its inflation ______ approach, adjusting interest rates and using other monetary policy tools to maintain stable prices and a balanced economy.
The BSP will continue to refine its inflation ______ approach, adjusting interest rates and using other monetary policy tools to maintain stable prices and a balanced economy.
Initiatives like QR PH and ______ are part of this strategy to make financial transactions more accessable.
Initiatives like QR PH and ______ are part of this strategy to make financial transactions more accessable.
Governance banking institutions play a pivotal role in ensuring the ______, transparency, and efficiency of the financial system while protecting the interests of depositors, investors, and the general public.
Governance banking institutions play a pivotal role in ensuring the ______, transparency, and efficiency of the financial system while protecting the interests of depositors, investors, and the general public.
This work is inspired by the growing importance of sound banking ______ in fostering trust, preventing financial crises, and driving sustainable economic growth.
This work is inspired by the growing importance of sound banking ______ in fostering trust, preventing financial crises, and driving sustainable economic growth.
The BSP grants licenses to various types of banks, including universal banks, commercial banks, thrift banks, rural banks and ______, ensuring they meet the required qualifications and standards.
The BSP grants licenses to various types of banks, including universal banks, commercial banks, thrift banks, rural banks and ______, ensuring they meet the required qualifications and standards.
Through the setting of key policy rates, the BSP influences the interest rates banks charge, which in turn affects lending and ______ behavior within the economy.
Through the setting of key policy rates, the BSP influences the interest rates banks charge, which in turn affects lending and ______ behavior within the economy.
The BSP enforces regulations to ensure banks adopt proper ______ management frameworks, including credit risk, market risk, operational risk, and liquidity risk, to safeguard the financial system and protect depositors.
The BSP enforces regulations to ensure banks adopt proper ______ management frameworks, including credit risk, market risk, operational risk, and liquidity risk, to safeguard the financial system and protect depositors.
The BSP is committed to ensuring that banks treat consumers fairly and transparently, providing clear information on banking products, services and ______.
The BSP is committed to ensuring that banks treat consumers fairly and transparently, providing clear information on banking products, services and ______.
Banks are required to disclose accurate and timely information on their financial status, operations, and risks, enabling consumers to make ______ decisions.
Banks are required to disclose accurate and timely information on their financial status, operations, and risks, enabling consumers to make ______ decisions.
The BSP ensures that banks adhere to the country's ______and combating the financing of terrorism (CFT) laws.
The BSP ensures that banks adhere to the country's ______and combating the financing of terrorism (CFT) laws.
The BSP monitors the overall stability of the banking system, ensuring that ______ institutions do not pose risks to the broader.
The BSP monitors the overall stability of the banking system, ensuring that ______ institutions do not pose risks to the broader.
The BSP regularly updates it's rules, regulations and ______ to reflect changes in the economy, financial markets, and global standards.
The BSP regularly updates it's rules, regulations and ______ to reflect changes in the economy, financial markets, and global standards.
The AMLC is responsible for implementing the AMLA to to safeguard the financial system from ______ laundering and the financing off terrorism.
The AMLC is responsible for implementing the AMLA to to safeguard the financial system from ______ laundering and the financing off terrorism.
Flashcards
Bangko Sentral ng Pilipinas (BSP)
Bangko Sentral ng Pilipinas (BSP)
The central monetary authority of the Philippines.
Monetary Board
Monetary Board
Oversees monetary and financial stability.
Price Stability
Price Stability
Maintains price stability and manages inflation.
Regulation of Banks
Regulation of Banks
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Foreign Exchange Management
Foreign Exchange Management
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Financial Inclusion
Financial Inclusion
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Sustainable Finance Initiatives
Sustainable Finance Initiatives
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Securities and Exchange Commission (SEC)
Securities and Exchange Commission (SEC)
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Philippine Deposit Insurance Corporation (PDIC)
Philippine Deposit Insurance Corporation (PDIC)
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Anti-Money Laundering Council (AMLC)
Anti-Money Laundering Council (AMLC)
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Department of Finance (DOF)
Department of Finance (DOF)
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National Credit Council (NCC)
National Credit Council (NCC)
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Commercial Banks
Commercial Banks
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Universal Banks
Universal Banks
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Thrift Banks
Thrift Banks
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Rural Banks
Rural Banks
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Digital Banks
Digital Banks
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Cooperative Banks
Cooperative Banks
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Deposit Services
Deposit Services
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Personal Loans
Personal Loans
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Home Loans
Home Loans
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Business Loans
Business Loans
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Cash Management
Cash Management
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Risk Management'
Risk Management'
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Cybersecurity
Cybersecurity
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Outstanding Debt
Outstanding Debt
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Cost Efficiency
Cost Efficiency
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Trade Financing
Trade Financing
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Study Notes
- North Eastern Mindanao State University is located in Rosario, Tandag City, Surigao del Sur
FM3 Banking and Financial Institutions - Preface
- This study seeks to understand the role of financial institutions in shaping the economic and financial landscape
- It aims to provide a comprehensive understanding of banking functions and the impact of financial intermediaries in a technologically advanced and globalized world
- It explores the banking sector's contributions to economic stability and its impact on individuals, businesses, and governments
- It examines the challenges and opportunities arising from digital transformation and the interconnected global economy
Insights for BSBA Students
- Gaining insights equips students with the knowledge and skills to make a positive contribution to the financial industry
- This knowledge supports academic growth and helps students excel in a dynamic professional environment
Author's Inspiration
- The module draws on the author's 11 years of banking, and seeks to promote financial literacy, economic empowerment, and informed decision-making
- The goal is to benefit students, professionals, policymakers, and anyone wanting an understanding of banking and finance
- Completion of the instructional material comes after seven years of teaching at Surigao del Sur State University, now North Eastern Mindanao State University
- The author wants it to foster exploration and innovation in banking and finance, adapting to emerging trends
Chapter 1 - The Central Bank of the Philippines
- Primary focus is on The Bangko Sentral ng Pilipinas (BSP) role in maintaining stability and growth of the Philippine economy
- As the nation's monetary authority, the BSP is backbone of the financial system, ensuring price stability, economic growth, and Philippine peso integrity
- Research aims to explore the BSP's responsibilities, including monetary policies, regulatory functions, and initiatives for financial inclusion and innovation
- Examines the Central Bank's strategies and interventions to address challenges like inflation control, exchange rate stability, and banking sector modernization
- The work recognizes the BSP's critical role in shaping the direction of the economy but also citizen empowerment through financial education and inclusion
Gratitude & Aspiration
- The study was made possible by mentors, experts, institutions, and organizations
- The research aspires to be a useful reference for students, policymakers, and professionals, fostering understanding of the BSP's contributions to progress and stability
Central Bank of the Philippines - Key Points
Overview of the Central Bank:
- Brief history and establishment
- Creation through Republic Act No. 265 in 1949
- Later replaced by the New Central Bank Act of 1993
- The Bangko Sentral ng Pilipinas has its current role under Republic Act No. 11211
Functions and Responsibilities:
- Monetary Policy Implementation is how the BSP manages inflation, money supply, and interest rates
- Issuance of Currency is the role in producing and circulating the Philippine currency
- Supervising and regulating banks and financial institutions to ensure stability
- Foreign Exchange Management maintains exchange rate stability and manages foreign reserves
- Ensuring purchasing power and economic growth
- Bringing banking services to underserved sectors
Organizational Structure:
- Governor, Monetary Board, and their specific functions
- Main responsibilities include supervision, economic research, payments, and currency management
Role in Economic Development:
- Maintaining a stable financial system
- Supporting the government's fiscal and economic programs
- Inclusive growth and financial education through policies and initiatives
Notable Policies and Programs:
- Inflation targeting framework
- Implementation of digital banking and financial technology innovations (e.g., QR PH, InstaPay, PESONet)
- Enforcing anti-money laundering and financial crime prevention
Challenges and Future Directions:
- Adapting to global economic trends and challenges
- Integrating sustainability initiatives, such as green financing
- Strengthening resilience to economic shocks
Overview of the Central Bank:
- The Bangko Sentral ng Pilipinas (BSP) is the country's central monetary authority
- It seeks to maintain price stability, ensure a sound financial system and to facilitate sustainable economic growth.
- Established in 1949 under Republic Act No. 265, the original Central Bank of the Philippines managed the country's monetary and banking systems
- In 1993, the Bangko Sentral ng Pilipinas replaced the original Central Bank through the New Central Bank Act (Republic Act No. 7653), for autonomous monetary policymaking
- Further reforms came 2019 enhancing BSP powers and capacity
Mandate and Purpose:
- The BSP's primary goal is achieving and maintaining price stability fostering economic development
- The BSP aims to preserve stability in the financial system, promote financial system use and efficient payments and settlement system
Core Principles:
- Autonomy for independent monetary policies
- Accountability through transparency
- Stability in managing inflation, exchange rates, and banking operations
- Aligns with international monetary and financial standards, collaborating with organizations like the International Monetary Fund (IMF) and the World Bank
Mandates and Purpose of the Central Bank:
- The Bangko Sentral ng Pilipinas (BSP) operates as the central monetary authority with a mandate to promote price stability and secure a stable financial system
- Responsibilities and purpose are outlined in the New Central Bank Act of 1993 (Republic Act No. 7653) and strengthened by Republic Act No. 11211
Primary Mandates:
- Price Stability is achieved by controlling inflation and ensuring consistent purchasing power
- Monetary policy adjustments (e.g., interest rates) and open market operations
- Sound and stable financial system through overseeing banks and financial institutions to ensure operation is secure and trustworthy
- Regulating liquidity to prevent economic imbalances/crises
- The BSP has the exclusive authority to issue the Philippine Peso ensuring it is durable, secure, and reflective of the country's sovereignty
- Managing the distribution and retirement of damaged/outdated notes and coins
- Monitors and regulates foreign exchange rates and reserves to ensure a balanced exchange rate system that supports trade and investments
- Ensuring availability of sufficient foreign reserves meet to international obligations
- The BSP fosters the development of domestic financial markets, supporting economic growth and encouraging investments
Purpose:
- The goal of the BSP is to foster a stable and sustainable economy that supports economic growth and employment generation
- Building trust through transparency
- The promotion of financial inclusion to reduce inequality
- Balancing mandates to address both short-term challenges and long-term development goals
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