Digital Banking in the Philippines
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Questions and Answers

Which type of bank is primarily owned and managed by private individuals?

  • Rural Bank (correct)
  • Commercial Bank
  • Savings Bank
  • Cooperative Bank

    • Which type of bank is organized or owned by cooperatives or federation of cooperatives?

  • Rural Bank
  • Commercial Bank
  • Savings Bank
  • Cooperative Bank (correct)

    • What is the primary purpose of a cooperative bank?

  • To provide financial services to rural areas only
  • To provide financial services to non-members or the general public
  • To provide financial services to farmers only
  • To provide financial services to cooperatives and their members (correct)

    • Which type of bank is allowed to accept current or checking accounts with a minimum net asset requirement?

    <p>Rural Bank</p> Signup and view all the answers

    Which bank offers a Digital Onboarding System with Artificial Intelligence (DOBSAI)?

    <p>Overseas Filipino Bank</p> Signup and view all the answers

    Which digital bank offers savings with up to 6% per annum interest?

    <p>Tonik Bank</p> Signup and view all the answers

    Which digital bank uses AI with machine learning for its face recognition onboarding and authentication?

    <p>UNO Digital Bank</p> Signup and view all the answers

    Which digital bank is a partnership between the Gokongwei Group and the Singapore-headquartered digital banking group Tyme?

    <p>GoTyme</p> Signup and view all the answers

    Which type of bank follows the principles of the Shari'a and does not involve interest (riba) in its operations?

    <p>Islamic Bank</p> Signup and view all the answers

    What is the rank of the COOP BANK OF BENGUET (CBB) based on assets as of March 31, 2023?

    <p>5</p> Signup and view all the answers

    What is the total assets of the COOPERATIVE BANK OF NUEVA VIZCAYA?

    <p>778.11</p> Signup and view all the answers

    What type of banking business aims and operations do not involve interest (riba) according to RA 6848?

    <p>Islamic Bank</p> Signup and view all the answers

    Which of the following is a primary goal of rural banks?

    <p>To expand the local economy in an orderly and effective manner</p> Signup and view all the answers

    What is the main purpose of loans or advances extended by rural banks under RA 7353?

    <p>To meet the credit needs of farmers, fishermen, and farm families</p> Signup and view all the answers

    According to the 2020 Manual of Regulations for Banks, what are the powers of a rural bank?

    <p>Act as correspondent of other Financial Institutions</p> Signup and view all the answers

    Under what condition can a rural bank accept current or checking accounts?

    <p>If it has net assets of at least P5</p> Signup and view all the answers

    Which of the following is NOT a classification of Electronic Money Issuers (EMI) according to the Bangko Sentral ng Pilipinas (BSP)?

    <p>EMI-Non-Bank</p> Signup and view all the answers

    What is the deadline for new applications for digital bank licenses according to the BSP?

    <p>September 1</p> Signup and view all the answers

    Which of the following is NOT considered an Electronic Instrument or Device according to the BSP?

    <p>Credit cards</p> Signup and view all the answers

    What is the purpose of closing the application window for digital bank licenses according to the BSP?

    <p>To monitor the performance and impact of digital banks</p> Signup and view all the answers

    According to RA 10753, rural banks can grant loans on the security of lands without Torrens Title if the owner can show five (5) years or more of peaceful, continuous and uninterrupted possession in concept of owner.

    <p>True</p> Signup and view all the answers

    According to RA 10753, rural banks can foreclose lands mortgaged to them, including lands covered by the Comprehensive Agrarian Reform Law of 1988 (RA No. 6657), as amended.

    <p>True</p> Signup and view all the answers

    According to RA 10753, rural banks are allowed to bid and take part in foreclosure sales of real property mortgaged to them, but they cannot transfer the title of the property to themselves.

    <p>True</p> Signup and view all the answers

    According to RA 10753, rural banks are exempt from the requirement of publishing foreclosure notices in newspapers if the total amount of the loan, excluding interest due and unpaid, does not exceed One hundred thousand pesos (P100,000) or such amount as the Monetary Board may prescribe.

    <p>True</p> Signup and view all the answers

    Which of the following is a key feature of a microinsurance product?

    <p>The amount of premiums does not exceed five percent of the current daily minimum wage rate</p> Signup and view all the answers

    What does the term 'contingent event' refer to in the context of insurance?

    <p>An event that may or may not happen</p> Signup and view all the answers

    What is the maximum sum of guaranteed benefits for a microinsurance product?

    <p>Less than the daily minimum wage rate</p> Signup and view all the answers

    What does it mean for premiums, contributions, fees, or charges to be collected/deducted prior to the occurrence of a contingent event?

    <p>They are collected before the occurrence of a contingent event</p> Signup and view all the answers

    What is the maximum percentage of the current daily minimum wage rate for non-agricultural workers that a microinsurance product's premiums can exceed?

    <p>5%</p> Signup and view all the answers

    Does the maximum amount of premium and guaranteed benefits apply on a per product or per policy basis for bundled products?

    <p>Yes, it applies on a per product basis</p> Signup and view all the answers

    Study Notes

    Types of Banks

    • Private banks are primarily owned and managed by private individuals.
    • Cooperative banks are organized or owned by cooperatives or federations of cooperatives.
    • The primary purpose of a cooperative bank is to provide financial services to its members with an emphasis on community development.

    Banking Regulations

    • Banks that can accept current or checking accounts must meet a minimum net asset requirement.
    • The deadline for new applications for digital bank licenses is set by the Bangko Sentral ng Pilipinas (BSP).
    • Electronic Money Issuers (EMI) are classified according to BSP guidelines, with certain entities not qualifying under these classifications.

    Digital Banking Innovations

    • The Digital Onboarding System with Artificial Intelligence (DOBSAI) is offered by a specific bank.
    • One digital bank provides savings accounts with interest rates up to 6% per annum.
    • AI with machine learning for face recognition onboarding and authentication is utilized by another digital bank.
    • A partnership between the Gokongwei Group and Singapore's digital banking Tyme has resulted in a new digital bank offering.

    Islamic Banking

    • Islamic banks operate under the principles of Shari'a law and do not involve interest (riba) in their transactions.

    Cooperative and Rural Banks

    • The COOP BANK OF BENGUET (CBB) ranks based on assets as of March 31, 2023.
    • The total assets of the COOPERATIVE BANK OF NUEVA VIZCAYA are a key financial metric.
    • Banking businesses as per RA 6848 must operate without involving interest (riba).
    • A primary goal of rural banks includes catering to the financial needs of local farmers and businesses.

    Rural Banking Functions

    • The main purpose of loans or advances from rural banks under RA 7353 is to support agriculture and rural development.
    • According to the 2020 Manual of Regulations for Banks, rural banks hold specified powers to enhance their operations.
    • Rural banks may accept current or checking accounts under determined conditions set by regulations.

    Lending and Foreclosure Regulations

    • Rural banks can grant loans secured by lands without Torrens Title given certain possession criteria is met.
    • They can foreclose lands mortgaged to them and participate in foreclosure sales, though they cannot transfer property title to themselves.
    • Rural banks are exempt from publishing foreclosure notices in newspapers for loans that do not exceed P100,000.

    Microinsurance

    • Key features of microinsurance products often include low premiums and simple terms.
    • The term 'contingent event' in insurance refers to events like death or disability that activate a claim.
    • The maximum guaranteed benefits for a microinsurance product are defined within specific limits.
    • Premiums collected prior to a contingent event imply financial commitments made ahead of insurance activation.
    • Microinsurance product premiums cannot exceed a certain percentage of the current daily minimum wage rate for non-agricultural workers.
    • Maximum premium and guaranteed benefits limits apply on a per policy basis rather than individually for each bundled product.

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    Description

    Quiz: Digital Banking in the Philippines - Impact and Regulations Test your knowledge on the latest developments in digital banking in the Philippines. Learn about the recent decision by the BSP to close the application window for new digital banks and the implications for the banking system. Explore the regulations governing digital banking and assess their contribution to the financial sector.

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