10 Questions
The DBP tapped both foreign and local fund sources to complement its ______ resources.
capital
Credits were obtained directly from international ______ institutions.
financial
1963 – Congress broadened DBP’s powers by increasing its ______ to P2-billion.
capitalization
The lion’s share of funding goes to industries in need of ______.
support
The completion of the planned merger between the Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP) is expected to be completed in the first half of ______.
2024
This is a slight delay compared to the end of 2023 original ______.
target
A S S E S S M E N T A S S I G N M E N T Quiz will be given at the end of the ______.
discussion
R E F E R E N C E S provided.
References
DBP’s borrowing capacity increased to 10 times its paid-in capital and ______.
surplus
The DBP tapped both foreign and local fund sources to complement its ______ resources.
capital
Study Notes
Importance of Bank Regulation
- Ensuring banks operate in a safe and sound manner is in the public interest
- Banks manage savings, facilitate fund transfers, and provide credit for entrepreneurs
- Banking authorities define regulatory frameworks to encourage innovation while monitoring governance guidelines
Systemic Risks and Financial Stability
- The Global Financial Crisis (GFC) highlighted the interconnectedness of financial systems
- Interlinked risk choices within the network can lead to societal outcomes differing from private intentions
- Macroprudential policy manages systemic risks to enhance financial stability
Unique Features of Banks
- Banks create money through new bank credit, which Central Banks can curb
- Banks play a pivotal role in bridging the gap between idle savings and investment
Role of Financial Institutions
- Regulated by a central government organization for banking and non-banking financial institutions
- Provide services such as banking, insurance, capital formation, investment advice, brokerage, pension funds, and trust funds
Components of the Financial System
- Financial institutions: corporations dealing with financial and monetary matters
- Divided into banking and non-banking institutions
Philippine Banking History
- Banco Español-Filipino was the first government bank in the Philippines and the third Philippine bank during the Spanish era
- Founded by José Joaquín de Ynchausti in 1851 and had the power to print Philippine currency
- Ayala Corporation became the dominant shareholder of BPI in 1969
- Monte de Piedad and Savings Bank is the oldest savings bank in the Philippines, founded by Fr. Felix Huertas in 1882
- China Banking Corporation was founded by Dee C. Chuan, Don Albino Sycip, and other prominent businessmen in 1920
- Development Bank of the Philippines (DBP) was created in 1935 and reorganized in 1958 to accelerate national development efforts
- DBP is expected to merge with the Land Bank of the Philippines in 2024
Test your knowledge on banking regulatory frameworks that ensure banks operate safely and soundly, managing savings, transferring funds, and providing credit. Explore how banking authorities define regulations, encourage innovation, and monitor governance guidelines.
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