14 Questions
What is the term 'Bank' and 'Banking Institution' synonymous with according to the Act?
All types of banks and banking institutions in the Philippines
What is the primary duty of a receiver as defined in the Act?
To take charge of the assets and liabilities of a bank
What is an 'insured bank' as defined in the Act?
A bank the deposits of which are insured in accordance with the Act
What is the difference between an 'insured bank' and a 'non-insured bank'?
The former has insured deposits, while the latter does not
What is the term for the Board of Directors of the Corporation as defined in the Act?
Board of Directors
What type of banks are included in the term 'Bank' and 'Banking Institution'?
All banks, including cooperative banks, stock savings and loan associations, and branches of foreign banks
What is the definition of a deposit in the context of banking?
The unpaid balance of money or its equivalent received by a bank in the usual course of business
What is not considered a deposit for the purpose of this Act?
Funds received by a bank branch outside of the Philippines, if the bank has not elected to include it for insurance
Which of the following is not a type of deposit account or transaction that is excluded from deposit insurance?
Funded deposit accounts
What is the consequence of a bank's deposit accounts or transactions being determined to be unsafe and unsound banking practice?
The Corporation will publish a cease and desist order
What is the time limit for filing a petition for certiorari on the ground that the Corporation's action was taken in excess of jurisdiction or with grave abuse of discretion?
30 days
What is the purpose of the Corporation's action to determine deposit accounts or transactions that are unfunded or fictitious?
To exclude them from deposit insurance
What is the requirement for an insured bank to include its deposit obligations payable only at a branch outside the Philippines for insurance?
The bank must obtain approval from the Board of Directors
What is the consequence of a deposit being determined to be the proceeds of an unlawful activity?
The deposit will be excluded from deposit insurance
Study Notes
Definitions
- "Board of Directors" refers to the Board of Directors of the Corporation.
- "Bank" and "Banking Institution" are interchangeable and include banks, commercial banks, savings banks, mortgage banks, rural banks, development banks, cooperative banks, stock savings and loan associations, and branches and agencies of foreign banks in the Philippines.
- "Receiver" includes a receiver, commission, person, or agency responsible for taking charge of a bank's assets and liabilities when it is forbidden from doing business in the Philippines.
Types of Banks
- "Insured bank" refers to a bank with insured deposits according to this Act.
- "Non-insured bank" refers to a bank with uninsured deposits.
Deposits
- A "deposit" is the unpaid balance of money or its equivalent received by a bank in the usual course of business, including commercial, checking, savings, time, or thrift accounts.
- Exclusions from deposits include investment products, unfunded or fictitious accounts, transactions from unsafe banking practices, and deposits from unlawful activities.
Deposit Insurance
- The Corporation does not provide deposit insurance for certain accounts or transactions, including investment products, unfunded or fictitious accounts, and those resulting from unsafe banking practices or unlawful activities.
- Actions taken by the Corporation regarding deposit insurance are final and executory, unless a petition for certiorari is filed within 30 days.
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