RICAMORA, PATRICK LAWRENCE S.

BSBA LM-3

Assignment No. 2

1. Give examples of a universal bank, commercial bank, thrift bank, rural

bank, cooperative bank and Islamic bank.

Examples of a Universal Bank:

1. Bangko De Oro (BDO)
2. MetroBank
3. LandBank
4. Bank of the Philippines (BPI)
5. Philippine National Bank (PNB)

Examples of a Commercial Bank:

1. East West Bank
2. ChinaBank
3. Security Bank
4. Union Bank
5. Rizal Commercial Bank Corporation (RCBC)

Examples of a Thrift Bank:

1. Allied Savings Bank
2. City Savings Bank
3. Citystate Savings Bank
4. Bank One Savings and Trust Corporation
5. Luzon Development Bank

Examples of a Cooperative Bank:

1. Bataan Cooperative Bank
2. Consolidated Cooperative Bank
3. Cooperative Bank of Cagayan
4. National Teachers & Employees Cooperative Bank
5. Metro South Cooperative Bank

Examples of a Islamic Bank:

1. Al-Amanah Islamic Bank
2. Maybank
2. Distinguish bank from quasi bank and trust entities.

A quasi-bank is defined as borrowing funds for the borrower's own

account from twenty or more lenders at any one time, for the purpose of lending
or purchasing receivables and other similar obligations, through the issuance,
endorsement, or acceptance of debt instruments of any kind other than deposits,
or through the issuance of participations, certificates of assignments, or similar
instrument with recourse, trust certificates, or repurchase agreements.

While the definition of trust entity under the Bangko Sentral Manual of
Regulations for banks, does not state the definition of a trust entity rather it
enumerates instead what are trust entities.

Trust entity (TE) shall refer to a:

1. Bank or an NBFI, through its specifically designated business unit
to perform trust functions; or

2. trust corporation, authorized by the Bangko Sentral to engage in

trust and other fiduciary business under Section 79 of R.A. No.
8791 (The General Banking Law of 2000) or to perform investment
management services under Section 53 of R.A. No. 8791.

However, based from jurisprudence the court states that “A trust is the
legal relationship between one person having an equitable ownership of property
and another person owning the legal title to such property, the equitable
ownership of the former entitling him to the performance of certain duties and the
exercise of certain powers by the latter.” It can be inferred that a trust entity holds
in trust properties belonging to the trustor in which the trust entity has the duty
whilst the property is in its possession.

3. What is the degree of diligence required of banks in handling deposits?

The fiduciary nature of banking, previously imposed by case law is now

enshrined in Republic Act No. 8791 or the General Banking Law of 2000. Section
2 of the law specifically says that the State recognizes the "fiduciary nature of
banking that requires high standards of integrity and performance."