Similar to credit unions because they are owned by

members (or customers) instead of outside investors.

Also like credit unions, they tend to be active only in a Answer 1
single community. Mutual banks
 

It is negotiation between granters of credit and

grantees of credit.  Only those who lend the money of Answer 2
others are bankers; those who merely lend their own Banking
 
capital are capitalists, but not bankers.
Holds that banks are merely financial intermediaries,
not different from other non-bank financial institutions:
Answer 3
they gather deposits and lend these out.
Financial intermediation theory
 

An emerging trend in the financial industry today.  This

technology, which is still at an early stage of
development, is seen as an effective tool in reducing Answer 4
information and transaction costs. Electronic banking
 

May provide financial services such as wealth Answer 5

management, currency exchange, and safe deposit Banks
boxes.  
 It measures the borrower’s ability to pay, including
borrower’s payment source and amount of income
Answer 6
relative to debt.
Capacity
 

Are called business banks or corporate banks, manage

payments for customers, provide lines of credit to
manage cash flow, and offer foreign exchange services Answer 7
for companies that do business overseas. Commercial banks
 

Help businesses raise capital in financial markets. If a Answer 8

company wants to go public or sell debt to investors, it Investment banks
often uses this banks.  
 Means capital adequacy, asset quality, management,
earnings, liquidity and sensitivity to market risk. Answer 9
CAMELS
 

 It was signed into law on 23 May 2000, amending the Answer 10
country's 52-year-old General Banking Act. The General Banking Law of 2000 (GBL)
 
REVIEWER BFI

It is the policy of the government to encourage people to deposit money in banks.

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False

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Question 2
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Banks shall issue par value stocks only.
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Question 3
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Attendance of the Board of Directors at Board meetings through teleconference is allowed.

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Question 4
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Foreign individuals may own up to forty (40%) percent of the voting stock of a domestic bank.

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Question 5
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Investment banks does not play a vital role in the corporate system.
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Question 6
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Single Borrower’s Limit shall not exceed twenty (20%) of the bank’s net worth.
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No person or entity shall engage in banking operations without authority from Central Bank.
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Question 8
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An Independent Director should always be in attendance in every Board Meeting.
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Question 9
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Central Bank has the authority to examine an enterprise owned and controlled by banks.
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Question 10
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Universal banks may open branches within or outside the Philippines.
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Question 11
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The loanable amount of collateral imposed by Bangko Sentral ng Pilipinas is 50%.
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Question 12
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Question text
All deposits of whatever nature with banks are considered confidential in nature.
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Question 13
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Universal banks shall have the authority to sell insurance.
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It is the Board of Director’s responsibility to foster the long-term success of the company.

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Maximum deposit insurance may be not increased by law.
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