Islamic Banks vs. Commercial Banks: Functions and Services
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Questions and Answers

What is the main function of commercial banks in relation to deposits?

Providing a safe and secure environment for depositors to store their funds

Name three types of loans typically offered by commercial banks.

Personal loans, home loans, business loans, and agricultural loans

What services do commercial banks provide to facilitate international trade?

Letters of credit, export financing, import financing, and other trade-related services

What are some examples of investment avenues offered by commercial banks?

<p>Mutual funds, bonds, stocks, and other financial instruments</p> Signup and view all the answers

What is the role of commercial banks in foreign exchange transactions?

<p>Providing services for converting one currency into another</p> Signup and view all the answers

What is one of the main challenges faced by commercial banks in their operations?

<p>Regulatory compliance</p> Signup and view all the answers

What is the purpose of a Rural Bank?

<p>To offer credit facilities at reasonable terms to farmers, merchants, and their cooperatives, as well as to the general rural populace.</p> Signup and view all the answers

Define Return On Assets (ROA) and its significance.

<p>ROA is an indicator of how profitable a company is relative to its total assets.</p> Signup and view all the answers

List three services that a Rural Bank may offer or perform.

<ol> <li>Grant loans and make investments in accordance with existing rules and regulations. 2. Accept savings and time deposits. 3. Sell domestic drafts.</li> </ol> Signup and view all the answers

What are the characteristics of Rural Banks?

<p>Privately run, mostly privately owned, supported by the government, offer credit facilities in rural areas.</p> Signup and view all the answers

Explain the role of a Rural Bank in financial transactions in rural areas.

<p>Rural Banks facilitate financial transactions where bank branches are too far away to be useful.</p> Signup and view all the answers

What does Regulatory Oversight entail for Thrift Banks?

<p>Regulatory Oversight involves ensuring the security and stability of Thrift Banks.</p> Signup and view all the answers

What are the customer services that a Rural Bank may provide?

<p>Rural Banks may offer services like selling domestic drafts, acting as financial agents, and receiving funds in custody.</p> Signup and view all the answers

What was the first mission of the National Loan and Investment Board?

<p>Coordinate and trust manage funds</p> Signup and view all the answers

When was the Land Bank of the Philippines established?

<p>August 8, 1963</p> Signup and view all the answers

What was the purpose of creating Amanah Bank?

<p>Promoting and accelerating the socio-economic growth of Mindanao</p> Signup and view all the answers

What type of financial services do Universal Banks offer?

<p>Wide range of financial services</p> Signup and view all the answers

What are Thrift Banks also known as?

<p>Savings and mortgage banks</p> Signup and view all the answers

Which type of banks serve the banking needs of rural communities and agricultural sectors?

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

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