Bank Operations, Management and Marketing (FIMA 40063) PDF

Republic of the Philippines POLYTECHNIC UNIVERSITY OF THE PHILIPPINES COLLEGE OF ACCOUNTANCY AND FINANCE DEPARTMENT OF FINANCIAL MANAGEMENT Learning Material FIMA 40063 (Bank Operations, Managem...

Republic of the Philippines POLYTECHNIC UNIVERSITY OF THE PHILIPPINES COLLEGE OF ACCOUNTANCY AND FINANCE DEPARTMENT OF FINANCIAL MANAGEMENT Learning Material FIMA 40063 (Bank Operations, Management and Marketing) Prof. Gem B. Galupar, CLSSGB Welcome Welcome to the Class BASIC GUIDELINES IN ESTABLISHING DOMESTIC BANKS.. must have.. suitable/fit shareholders, including Checklist and Requirements the ultimate beneficial owners under BSP’s MORB (UBOs)  Appendix 33 - for all banks adequate financial strength  Appendix 2 - applicable a legal structure in line with its for foreign banks only operational structure  Appendix 34 - for all banks a board of directors and senior  Appendix 139 - for Islamic management with sufficient Banks and Islamic Banking expertise and integrity to operate Units the bank in a safe and sound manner Property and Material of Gem B. Galupar BASIC GUIDELINES IN ESTABLISHING DOMESTIC BANKS The minimum capitalization of UBs, KBs, TBs shall be as follows Property and Material of Gem B. Galupar BASIC GUIDELINES IN ESTABLISHING DOMESTIC BANKS The minimum capitalization of RBs and Coops Property and Material of Gem B. Galupar BASIC GUIDELINES IN ESTABLISHING DOMESTIC BANKS The minimum capitalization of Digital Bank Minimum of P1.0 billion Property and Material of Gem B. Galupar BASIC GUIDELINES IN ESTABLISHING DOMESTIC BANKS Application and license fees for new domestic banks. Applications for new domestic banking licenses, except for applications to establish a bank with head office located in cities or municipalities where there are no existing banking offices as well as to merge and acquire a distressed bank, shall be subject to both application and license fees below: Property and Material of Gem B. Galupar BASIC GUIDELINES IN ESTABLISHING DOMESTIC BANKS The Board of Directors It is the thrust of the Bangko Sentral to continuously strengthen The corporate powers of an institution shall be exercised, its business corporate governance in its supervised financial institutions cognizant conducted, and all its resources controlled through its board of directors. The that this is central in sustaining the resiliency and stability of the financial system. In this light, the Bangko Sentral is aligning its existing powers of the board of directors as conferred by law are original and cannot be regulations with the Code of Corporate Governance for Publicly‐Listed revoked by the stockholders. The directors shall hold their office charged with the Companies issued by the SEC as well as with best practices and duty to exercise sound and objective judgment for the best interest of the standards issued by globally recognized standard setting bodies. institution. Composition of the Board of Directors  Pursuant to Sections 15 and 17 of R.A. No. 8791, there shall be at least five (5), and a maximum of fifteen (15)  in case of a bank merger or consolidation, shall not exceed to exceed twenty‐one (21)  (1/3) but not less than two (2) members of the board of directors shall be independent directors (in the case of RBs, at least one (1) independent director shall be elected to the board of directors  Non‐Filipino citizens may become members of the board of directors of a BSFI to the extent of the foreign participation in the equity of said BSFI. Property and Material of Gem B. Galupar BASIC GUIDELINES IN ESTABLISHING DOMESTIC BANKS The Board of Directors It is the thrust of the Bangko Sentral to continuously strengthen The corporate powers of an institution shall be exercised, its business corporate governance in its supervised financial institutions cognizant conducted, and all its resources controlled through its board of directors. The that this is central in sustaining the resiliency and stability of the financial system. In this light, the Bangko Sentral is aligning its existing powers of the board of directors as conferred by law are original and cannot be regulations with the Code of Corporate Governance for Publicly‐Listed revoked by the stockholders. The directors shall hold their office charged with the Companies issued by the SEC as well as with best practices and duty to exercise sound and objective judgment for the best interest of the standards issued by globally recognized standard setting bodies. institution. Qualification of Directors  Must be fit and proper for the position of a director  Must have sufficiency of time to fully carry out responsibilities  Must have integrity/probity  Must have NO concurrent positions in the same BSFI and  Must have physical/mental fitness interlocking positions in other entities that may pose conflict of  Must have relevant education/financial literacy/training interest.  Must have attended a seminar on corporate  A non‐executive director may concurrently serve as director in a governance for board of directors. maximum of five (5) publicly listed companies  Must have possession of competencies relevant to the  An independent director of a BSFI may only serve as such for a job maximum cumulative term of nine (9) years. Provided, That in the  Must have knowledge and experience, skills, diligence case of cooperative banks, the maximum cumulative term for and independence of mind independent directors shall be eight (8) years. Property and Material of Gem B. Galupar BASIC GUIDELINES IN ESTABLISHING DOMESTIC BANKS The Board of Directors It is the thrust of the Bangko Sentral to continuously strengthen The corporate powers of an institution shall be exercised, its business corporate governance in its supervised financial institutions cognizant conducted, and all its resources controlled through its board of directors. The that this is central in sustaining the resiliency and stability of the financial system. In this light, the Bangko Sentral is aligning its existing powers of the board of directors as conferred by law are original and cannot be regulations with the Code of Corporate Governance for Publicly‐Listed revoked by the stockholders. The directors shall hold their office charged with the Companies issued by the SEC as well as with best practices and duty to exercise sound and objective judgment for the best interest of the standards issued by globally recognized standard setting bodies. institution. Chairperson of the Board of Directors  provide leadership in the board of directors  ensure that dissenting views can be expressed and  ensure effective functioning of the board of discussed within the decision‐making process directors  ensure that members of the board of directors receive  ensure that the meeting agenda focuses on accurate, timely, and relevant information strategic matters including discussion on risk  ensure the conduct of proper orientation for first‐time appetites, and key governance concerns directors and provide training opportunities for all directors  ensure a sound decision‐making process  ensure conduct of performance evaluation of the board of  encourage and promote critical discussion directors at least once a year Property and Material of Gem B. Galupar BASIC GUIDELINES IN ESTABLISHING DOMESTIC BANKS The Board of Directors It is the thrust of the Bangko Sentral to continuously strengthen The corporate powers of an institution shall be exercised, its business corporate governance in its supervised financial institutions cognizant conducted, and all its resources controlled through its board of directors. The that this is central in sustaining the resiliency and stability of the financial system. In this light, the Bangko Sentral is aligning its existing powers of the board of directors as conferred by law are original and cannot be regulations with the Code of Corporate Governance for Publicly‐Listed revoked by the stockholders. The directors shall hold their office charged with the Companies issued by the SEC as well as with best practices and duty to exercise sound and objective judgment for the best interest of the standards issued by globally recognized standard setting bodies. institution. Specific duties and responsibilities of the Board of Directors define the responsible for responsible for responsible of responsible for responsible for BSFI’s approving the approval of a approving and approving and corporate BSFI’s appointment/ sound overseeing overseeing its culture and objectives and selection of key remuneration implementation management’s values strategies and in members of and other of the BSFI’s implementation overseeing its senior incentives policy corporate of the BSFI’s management’s management and for personnel governance risk governance heads of control implementation framework framework functions Property and Material of Gem B. Galupar Let’s watch the video about the concept of Corporate Leadership Property and Material of Gem B. Galupar Now, it’s your turn. What the video tells about Corporate Leadership?.. that governance of the company starts with the Board of Directors.... and extended to every part of the company.. in practical terms, governance is the system of the company to control and operate.. a mechanism of responsibility and accountability Property and Material of Gem B. Galupar Still, your turn. Integrate Corporate Leadership to Bank Management Answer this, what are the areas of a BANK’s responsibilities and accountabilities, based on below specific duties and responsibilities of a BANK’s Board of Directors?  Customer  Financial/  Organizational  Salaries,  Bank Policies  Risk Service Income Targets Structure/ Staffing Benefits and and Procedures Management  Financial  Market Share  Target Operation Compensation  Compliance to  Control Inclusivity & Coverage Model or Work  Employee Regulatory Mechanisms Literacy  Industry Design Training & Bodies  Safe and Sound  Corporate Social Leadership  Execution of Development Environment Responsibility  Strategic & Targets, Policies  Career Business Plan and Procedures Development Property and Material of Gem B. Galupar Bank Management Preface That is BANK MANAGEMENT In the coming weeks, we will tackle Bank Management with: Liquidity Liability Asset Capital Adequacy Management Management Management Management Property and Material of Gem B. Galupar  Any question? 15-mins break Then, next is Bank Functions and Services Property and Material of Gem B. Galupar Bank Functions and Services 17 Deposit Function 1 2 Loan Facility Corporate or Institutional Retail and Non-OTC Banking 3 4 Banking Payment and Settlement Credit Facility 5 6 Service Wealth Management and Advisory Services 7 8 Investment Banking Services Trust and Fiduciary Services / Risk Management and Custody and Safekeeping 9 10 Insurance Services Service Property and Material of Gem B. Galupar  Bank Functions and Services: Deposit Acceptance 18 We discussed the general definition of deposit last week. Today, let’s define it further. Bank deposits are funds placed into a financial institution by individuals, businesses, or other entities. These deposits can be made into various types of accounts, such as savings accounts, checking accounts, or fixed deposits. When you deposit money into a bank, it becomes a liability for the bank as it holds your money with the promise to return it on demand or at the end of a specified term. References 1. Reserve Bank of India. (2023). Understanding Bank Deposits | https://rbi.org.in 2. Federal Deposit Insurance Corporation. (2023). The Importance of Bank Deposits | https://www.fdic.gov 3. Investopedia. (2023). How Bank Deposits Work | https://www.investopedia.com 4. Bank of England. (2023). The Role of Deposits in the Banking System |https://www.bankofengland.co.uk Property and Material of Gem B. Galupar  Bank Functions and Services: Deposit Acceptance 19 Use and Importance of Bank Deposits LIQUIDITY: Deposits provide individuals and businesses ECONOMIC STABILITY: A large volume of deposits 01 with easy access to their funds, which is essential for 05 strengthens the banking system, providing the liquidity managing daily financial activities. needed to meet withdrawal demands and contributing to financial stability. SAVINGS & INTEREST: Deposits, especially in savings INCOME FOR BANKS: Banks generate income by 02 accounts, offer a secure way for people to save money while earning interest. This encourages saving, which is 06 lending deposited funds at a higher interest rate than what they pay to depositors, making deposits a critical source crucial for financial stability. of revenue TRANSACTION FACILITATION: Bank deposits allow SECURITY: Deposits in banks are often insured, offering 03 for the smooth functioning of financial transactions, such 07 depositors protection in the event of a bank failure. This as bill payments, money transfers, and purchases. security builds trust in the banking system CREDIT CREATION: Banks use the deposits to lend INVESTMENT IN ECONOMIC DEVT: Deposits enable 04 money to borrowers, which is a fundamental process in the economy. This lending supports consumer spending, 08 banks to fund sectors such as infrastructure, industry, and agriculture, which are vital for economic business investments, and overall economic growth. development References 1. Reserve Bank of India. (2023). Understanding Bank Deposits | https://rbi.org.in 2. Federal Deposit Insurance Corporation. (2023). The Importance of Bank Deposits | https://www.fdic.gov 3. Investopedia. (2023). How Bank Deposits Work | https://www.investopedia.com 4. Bank of England. (2023). The Role of Deposits in the Banking System |https://www.bankofengland.co.uk Property and Material of Gem B. Galupar Bank Functions and Services: Deposit Acceptance 20 Roles and Responsibilities in Opening and Accepting Deposits Clients and Banks POV Account Opening Bank Client Deposit Taking Property and Material of Gem B. Galupar Bank Functions and Services: Deposit Acceptance 21 Roles and Responsibilities in Opening and Accepting Deposits Clients and Banks POV 1. Customer Service 2. Account Managers 3. Compliance Officers Representatives (CSRs) (for high-value clients or  Regulatory Compliance Account Opening  Initial Interaction business)  Validate requirements against  Assistance with Forms  Customer (AML) and Know Your  Document Verification Relationship Customer (KYC) regulations  Data Entry in the System  Customized Solutions  Risk Assessment  Approval Process 5. Operations Personnel 6. KYC/AML Officers 4. IT Support  Account Setup  Due Diligence for KYC (Know  System Integrity  Card Your Customer) and AML (Anti-  Troubleshooting PrintingCheckbook Money Laundering) regulations Printing  Monitoring of post-opening to  Document Storage detect any suspicious activities or discrepancies 7. Financial Advisors 8. Branch Managers  Financial Guidance  Oversight and Approval  Product Bundling  Customer Escalations Each of these roles is vital to ensuring that the account opening process is efficient, compliant with regulations, and provides a positive experience for the customer. The collaboration between these personnel helps maintain the integrity and security of the bank’s operations. Property and Material of Gem B. Galupar Bank Functions and Services: Deposit Acceptance 22 Roles and Responsibilities in Opening and Accepting Deposits Clients and Banks POV 7. KYC/AML Officers 4. IT and Security 1. Bank Teller 3. Compliance Officers  Due Diligence for KYC Support  Customer Interaction  Regulatory Compliance (Know Your Customer)  System Integrity  Verification of Deposits Deposit Taking  Validate requirements against and AML (Anti-Money  Troubleshooting  Data Entry and Processing (AML) and Know Your Laundering) regulations in the System Customer (KYC) regulations  Monitoring of deposit  Balancing Transactions  Risk Assessment patterns 5. Operations Personnel  Security and Compliance  Approval Process / Accounting  Backend Processing 6. KYC/AML Officers 2. Customer Service  Accounting, Balancing,  Due Diligence for KYC (Know Representatives (CSRs) Reconciliation and Your Customer) and AML (Anti-  Assistance and Guidance Reporting Money Laundering) regulations  Handling Complex Queries  Monitoring of post-opening to  Customer Relationship detect any suspicious activities Management 6. Compliance Officer or discrepancies  Risk Assessment  Fraud Prevention 3. Branch Managers Accepting deposits at a bank involves multiple  Decision Makingx  Oversight and Approval personnel working together to ensure that deposits are handled accurately, securely, and  Approval and in full compliance with regulatory requirements Escalation  Compliance and Risk Property and Material of Gem B. Galupar Management Bank Functions and Services: Deposit Acceptance 23 Roles and Responsibilities in Opening and Accepting Deposits Clients and Banks POV Account Opening Bank Client Deposit Taking The GOAL: Make your client happy and secured Property and Material of Gem B. Galupar Bank Functions and Services: Deposit Acceptance 24 We discussed the general definition of deposit last week.. in the US.... in the Ph.. Checkable Deposits are bank accounts that allow the F. DEPOSIT SUBSTITUTE owner of the account to write checks to third parties. Checkable A. DEMAND DEPOSITS OPERATIONS QUASI‐BANKING deposits include all accounts on which checks can be drawn. (Section 201 - 204) FUNCTIONS (Section 241 - 246) Checkable deposits accounts for 11% of bank liabilities of ALL Commercial Banks in US in 2017, but more than 60% of bank liabilities in 1960. B. SAVING DEPOSITS G. RESERVES AGAINST DEPOSIT (Section 211 - 213) AND DEPOSIT SUBTITUTES LIABILITIES (Section 251 - 256) Checkable deposits are payable on demand; that is, if a depositor shows up at the bank and requests payment by making a withdrawal, the bank must pay the depositor immediately C. TIME DEPOSITS (Section 216 - 218) H. INTEREST AND FEES (Section 261 - 263) Non-transaction Deposits Nontransaction deposits are D. NEGOTIABLE ORDER OF the primary source of bank funds, 61% of bank liabilities. Owners WITHDRAWAL (NOW) ACCOUNTS cannot write checks on non-transaction deposits, but the interest (Section 221 - 223) I. DEPOSIT OPERATIONS rates paid on these deposits are usually higher than those on (Section 271 - 276) checkable deposits. There are two basic types of non-transaction deposits: savings accounts and time deposits (also called E. GOVERNMENT DEPOSIT certificates of deposit, or CDs). (Section 231) BSP’s MORB as of December 2021 The Economics of Money,Banking, and Financial Markets, TWELFTH EDITION, Frederic S. Mishkin Property and Material of Gem B. Galupar Bank Functions and Services: Deposit Acceptance 25 Today, we will focus on the perspective of MORB A. DEMAND D. NEGOTIABLE ORDER OF E. GOVERNMENT B. SAVING DEPOSITS C. TIME DEPOSITS WITHDRAWAL (NOW) DEPOSIT DEPOSITS (Section 216 - 218) (Section 201 - 204) (Section 211 - 213) ACCOUNTS (Section 221 - 223) (Section 231) MORB PART 2: DEPOSITS, BORROWINGS AND Features and Offerings: 204 DEMAND DEPOSITS OF BANK OTHER LIABILITIES OFFICERS AND EMPLOYEES  Comes in a passbook, A. DEMAND DEPOSITS As a general rule, officers and employees 201 AUTHORITY TO ACCEPT OR CREATE DEMAND checkbook, and a of banks, their spouses and relatives within DEPOSITS debit card the second degree of consanguinity and  It has global access affinity, including partnerships, Banks may accept or create demand deposits, an to POS and associations or corporations in which such interest bearing account, that can be subject to Merchant terminals officers and employees, their spouses and withdrawal by check. relatives within the second degree of  Initial Deposit consanguinity and affinity, individually or  A UB/KB may accept or create demand  Maintaining Balance as a group, own or control at least a deposits subject to withdrawal by check,  The checks issued majorityof the capital are prohibited from without prior authority from the Bangko Sentral. are subject to maintaining demand deposits or current accounts with the banking office in  A TB/RB/Coop Bank may accept or create clearing of PCHC which they are assigned. demand deposits upon prior authority of the Bangko Sentral. Property and Material of Gem B. Galupar Bank Functions and Services: Deposit Acceptance 26 Today, we will focus on the perspective of MORB A. DEMAND D. NEGOTIABLE ORDER OF E. GOVERNMENT B. SAVING DEPOSITS C. TIME DEPOSITS WITHDRAWAL (NOW) DEPOSIT DEPOSITS (Section 216 - 218) (Section 201 - 204) (Section 211 - 213) ACCOUNTS (Section 221 - 223) (Section 231) MORB PART 2: DEPOSITS, BORROWINGS AND OTHER LIABILITIES B. SAVINGS DEPOSITS 213 BASIC DEPOSIT ACCOUNT A basic deposit account refers to interest‐ or non‐interest‐bearing account designed to promote financial inclusion. This account will enable Filipinos, especially the unserved and underserved, to receive and make payments, as well as have a facility for store of value. It will have the basic functionalities that will characterize ease, accessibility, convenience, and reasonable cost for both banks and 211 SAVINGS DEPOSIT TRANSACTIONS customers. Banks are prohibited from issuing/accepting withdrawal slips or any other similar instruments designed to effect withdrawals of savings deposits without requiring the Banks shall be given the liberty to customize their product depositors concerned to present their passbooks and accomplishing the necessary offerings based on the needs of the identified market: withdrawal slips, except for banks authorized by the Bangko Sentral to adopt the no passbook Provided, That banks adopt the following minimum key withdrawal system. features of a basic deposit account. Property and Material of Gem B. Galupar Bank Functions and Services: Deposit Acceptance 27 Today, we will focus on the perspective of MORB A. DEMAND D. NEGOTIABLE ORDER OF E. GOVERNMENT B. SAVING DEPOSITS C. TIME DEPOSITS WITHDRAWAL (NOW) DEPOSIT DEPOSITS (Section 216 - 218) (Section 201 - 204) (Section 211 - 213) ACCOUNTS (Section 221 - 223) (Section 231) MORB PART 2: DEPOSITS, Features and Offerings: Note: Unless authorized by BSP, TBs/ BORROWINGS AND OTHER  Form; denomination ‐ NCTDs may LIABILITIES RBs/ Coop Banks with outstanding NCTDs be issued in bearer or other form denoting negotiability and shall have shall immediately desist from issuing C. TIME DEPOSITS a standard format to be prescribed new NCTDs. 217 CERTIFICATES OF TIME DEPOSIT by BSP which shall be prenumbered serially a. Negotiable Certificates of Time  Term ‐ The minimum maturity of the certificates shall be 731 days. Deposits (NCTDs)  Manner of issuance ‐ The Long‐term negotiable certificates of time certificates shall be printed on deposit (LTNCTDs) minimum maturity 5 years: (1) UBs/KBs may issue NCTDs security paper. without approval of the Bangko  Manner of printing ‐ NCTDs shall Pre‐termination is subject to income tax Sentral. be printed on security paper by the  5% - 4 years to < 5 years Security Plant Complex (SPC) of  12% - 3 years to < 4 years BSP (2) TBs/RBs/Coop Banks may issue  20% - < 3years  All outstanding NCTDs shall not be NCTDs upon the prior approval of subject to renewal when maturity is the Bangko Sentral. reached. Property and Material of Gem B. Galupar Bank Functions and Services: Deposit Acceptance 28 Today, we will focus on the perspective of MORB A. DEMAND D. NEGOTIABLE ORDER OF E. GOVERNMENT B. SAVING DEPOSITS C. TIME DEPOSITS WITHDRAWAL (NOW) DEPOSIT DEPOSITS (Section 216 - 218) (Section 201 - 204) (Section 211 - 213) ACCOUNTS (Section 221 - 223) (Section 231) MORB PART 2: DEPOSITS, BORROWINGS AND OTHER LIABILITIES D. NEGOTIABLE ORDER OF WITHDRAWAL (NOW) ACCOUNTS NOW accounts are interest‐bearing deposit accounts that combine the payable on demand feature of checks and investment feature of savings accounts. (1) UBs/KBs may issue NOW Accounts without approval of BSP. Features and Offerings: (2) TBs/RBs/Coop Banks may issue  Format and Design‐ shall conform to PCHC if negotiated as check / NOW forms are prenumbered NOW Accounts upon the prior approval  Instructions ‐ shall be accepted by banks with 2 signatures from depositors of BSP  Maintenance - NOW accounts shall be kept and maintained separately from the regular savings deposits; Property and Material of Gem B. Galupar Bank Functions and Services: Deposit Acceptance 29 Today, we will focus on the perspective of MORB A. DEMAND D. NEGOTIABLE ORDER OF E. GOVERNMENT B. SAVING DEPOSITS C. TIME DEPOSITS WITHDRAWAL (NOW) DEPOSIT DEPOSITS (Section 216 - 218) (Section 201 - 204) (Section 211 - 213) ACCOUNTS (Section 221 - 223) (Section 231) MORB PART 2: DEPOSITS, BORROWINGS AND OTHER Deposits maintained by the Government, its subdivisions and instrumentalities LIABILITIES and GOCCs shall be supported by the following documents whenever applicable: E. GOVERNMENT DEPOSITS a) A copy of the resolution of the barangay, municipal or city council (Sangguniang Bayan/Panglunsod) or the provincial board (Sangguniang Panlalawigan) authorizing the deposit of municipal, city or provincial funds; As a general policy, cash balances of the Government, its political b) A copy of the resolution of the board of directors of the GOCCs authorizing the deposit of subdivisions and instrumentalities as well as of government‐owned funds of said corporations; or or controlled corporations (GOCCs) shall be deposited with BSP, c) In case of the National Government, its unincorporated branches, agencies and with only minimum working balances to be held by instrumentalities, a written authority to open deposit accounts and/or deposit government funds signed by the duly authorized official of the Department of Finance/Bureau of the government‐owned banks and such other banks incorporated in the Treasury (DOF/BTr) and of the department, bureau, agency, or office making the deposit. Philippines as the Monetary Board may designate  Private banks incorporated in the Philippines may act as depository of government funds only with the prior approval of Government, , its subdivisions and instrumentalities and the Bangko Sentral. GOCCs is not obliged to deposit to any authorized banks  TB/RB/Coop Bank may only act as official depository of (that accept government deposits) government funds Property and Material of Gem B. Galupar Bank Functions and Services: Deposit Acceptance 30 Today, we will focus on the perspective of MORB A. DEMAND D. NEGOTIABLE ORDER OF E. GOVERNMENT B. SAVING DEPOSITS C. TIME DEPOSITS WITHDRAWAL (NOW) DEPOSIT DEPOSITS (Section 216 - 218) (Section 201 - 204) (Section 211 - 213) ACCOUNTS (Section 221 - 223) (Section 231) F. DEPOSIT SUBSTITUTE OPERATIONS QUASI‐BANKING Deposit substitutes are alternative forms of obtaining funds FUNCTIONS (Section 241 - 246) from the public, other than deposits. MORB PART 2: DEPOSITS, BORROWINGS AND OTHER 242 DEPOSIT SUBSTITUTE INSTRUMENTS LIABILITIES F. DEPOSIT SUBSTITUTES Any deposit substitute transaction by a bank performing quasi‐banking functions shall be Elements of quasi‐banking. The essential elements of quasi‐banking are: a) Borrowing funds for the borrower’s own account; limited to its; b) Twenty (20) or more lenders at any one (1) time; c) Methods of borrowing are issuance, endorsement, or acceptance of debt instruments of any kind, other than deposits, such as acceptances, 1.own promissory notes promissory notes, participations, certificates of assignments or similar instruments with recourse, trust certificates, repurchase agreements, and 2.repurchase agreements such other instruments as the Monetary Board may determine; and d) dThe purpose of which is (1) relending, or (2) purchasing receivables or 3.certificates of assignment/participation with other obligations. recourse. Property and Material of Gem B. Galupar Bank Functions and Services: Deposit Acceptance Today, we will focus on the perspective of MORB Important Note on Clients Requirements for Account Opening: In offering deposit account, banks shall adopt clearly‐defined written policies, procedures and controls to ensure due diligence and compliance with applicable rules and regulations. Property and Material of Gem B. Galupar