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Questions and Answers
The Bangko Sentral ng Pilipinas is referred to as BSP and functions as an independent and accountable body corporate in matters concerning ______, banking and credit.
The Bangko Sentral ng Pilipinas is referred to as BSP and functions as an independent and accountable body corporate in matters concerning ______, banking and credit.
money
The New Central Bank Act was approved on ______ 14, 1993.
The New Central Bank Act was approved on ______ 14, 1993.
June
The primary objective of the BSP is to maintain ______ stability conducive to a balanced and sustainable growth of the economy.
The primary objective of the BSP is to maintain ______ stability conducive to a balanced and sustainable growth of the economy.
price
The Act amending the New Central Bank Act was approved on ______ 14, 2019.
The Act amending the New Central Bank Act was approved on ______ 14, 2019.
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The General Banking Law of 2000 primarily governs Universal Banks and Commercial Banks, and also applies to ______ Banks, Rural Banks and Cooperative Banks.
The General Banking Law of 2000 primarily governs Universal Banks and Commercial Banks, and also applies to ______ Banks, Rural Banks and Cooperative Banks.
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The BSP now has regulatory powers over money service businesses, credit granting businesses, and payment system ______.
The BSP now has regulatory powers over money service businesses, credit granting businesses, and payment system ______.
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The Anti-Money Laundering Law was enacted in ______.
The Anti-Money Laundering Law was enacted in ______.
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The scope of the New Central Bank Act includes the Republic Act No. 7653 and Republic Act No. ______ 11211.
The scope of the New Central Bank Act includes the Republic Act No. 7653 and Republic Act No. ______ 11211.
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A bank or quasi-bank cannot be incorporated without authority from the ______.
A bank or quasi-bank cannot be incorporated without authority from the ______.
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An entity performing banking functions cannot operate without a certificate of authority from the ______.
An entity performing banking functions cannot operate without a certificate of authority from the ______.
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No trust entity shall purchase property from or lend money to relatives within the 1st degree of ______.
No trust entity shall purchase property from or lend money to relatives within the 1st degree of ______.
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The Anti-Money Laundering Law of 2001 was passed to implement the global fight against ______.
The Anti-Money Laundering Law of 2001 was passed to implement the global fight against ______.
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The legislation defines money laundering as a criminal ______.
The legislation defines money laundering as a criminal ______.
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The Anti-Money Laundering Council (AMLC) serves as the central monitoring and implementing ______.
The Anti-Money Laundering Council (AMLC) serves as the central monitoring and implementing ______.
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The law imposes requirements on customer identification and reporting of covered and suspicious ______.
The law imposes requirements on customer identification and reporting of covered and suspicious ______.
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The Anti-Money Laundering Law allows for the freezing, seizure, and recovery of ______.
The Anti-Money Laundering Law allows for the freezing, seizure, and recovery of ______.
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The Bangladesh Bank Heist of 2016 resulted in the theft of over $______ million.
The Bangladesh Bank Heist of 2016 resulted in the theft of over $______ million.
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The heist utilized malware, social engineering, and ______ help to infiltrate the bank's systems.
The heist utilized malware, social engineering, and ______ help to infiltrate the bank's systems.
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The National Payment Systems Act was approved on October 30, ______.
The National Payment Systems Act was approved on October 30, ______.
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An efficient payment system reduces the cost of exchanging ______ and services.
An efficient payment system reduces the cost of exchanging ______ and services.
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The primary objective of a payment system is to control systemic ______.
The primary objective of a payment system is to control systemic ______.
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Study Notes
Financial Management - Banking and Finance Institutions
- Banking and finance institutions are a key component of financial management
- Chapter 4 focuses on banking laws
Scope of Banking Laws
- Republic Act No. 7653: The New Central Bank Act
- Republic Act No. 11211: Amending the New Central Bank Act
- The General Banking Law of 2000
- Anti-Money Laundering Law of 2001
- The National Payments Systems Act
The New Central Bank Act (1993)
- Establishes an independent central monetary authority (Bangko Sentral ng Pilipinas)
- Responsible for money, banking, and credit
- Functions as a body corporate
The New Central Bank Act (Continued)
- Bangko Sentral ng Pilipinas (BSP) has supervisory powers over banks and financial institutions
- Also exercises regulatory powers over quasi-banks and similar institutions
- Key objective is to maintain price stability conducive to economic growth and the convertibility of the peso
Amending the New Central Bank Act (2019)
- Strengthens the Bangko Sentral ng Pilipinas' regulatory powers
- Now includes price stability for balanced and sustainable job growth
- Expanded regulatory and examination powers to include money service businesses, credit-granting businesses, and payment system operators
The General Banking Law of 2000
- Primarily governs Universal Banks and Commercial Banks
- Has supplementary application to Thrift Banks, Rural Banks, and Cooperative Banks
- A bank or quasi-bank cannot be incorporated or operate without BSP authorization
- Prohibits trust entities from certain transactions with employees or relatives of their directors, officers, or stockholders
Universal Banks in the Philippines
- A list of specific Universal Banks is provided (e.g., Al-Amanah Islamic Investment Bank, ANZ Banking Group, BPI, BDO Unibank, etc.)
Anti-Money Laundering Law of 2001
- Defines money laundering as a criminal offense
- Establishes the Anti-Money Laundering Council (AMLC) to monitor and implement measures to combat money laundering
- This law sets requirements for customer identification, record keeping, reports on certain transactions
- Relaxes strict bank deposit secrecy laws related to freezing, seizure, or recovery of “dirty money”
- Ensures international cooperation
Bangladesh Bank Heist (2016)
- A highly sophisticated cyberattack targeting the Bangladesh central bank
- Used malware, social engineering, and insider help to steal over $81 million
- Highlighted the need for improved security measures against cybercrime
National Payment Systems Act (2018)
- Provides a comprehensive legal and regulatory framework to support payment systems
- Aims to control systemic risk and encourage economic growth
- A payment system is essential for transferring funds and reducing costs of transactions
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Description
Explore the essential elements of banking laws as outlined in Chapter 4 of Financial Management. This quiz covers important legislations, including the New Central Bank Act and other amendments, as well as the roles of the Bangko Sentral ng Pilipinas. Test your knowledge on banking institutions and their regulatory framework.
