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Casco, Malamion, Rama 2
Philippine Banking SystemHistory of Banks in the PhilippinesHistory of Bank of the Philippine Islands
INTRODUCTION
December 10, 2013
Casco, Malamion, Rama 3
PHILIPPINE BANKING SYSTEM
The Philippine banking system continued to deliver a remarkable performance in 2012 amid the ongoing fragilities in the global financial landscape on sustained implementation of deep reforms particularly on ensuring greater stability of the domestic banking system.
December 10, 2013
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PHILIPPINE BANKING SYSTEM During 2012, there were 9,410 operating
banks consisting of 696 head offices and 8,714 branches and other offices.
Banks accounted for 34.7% (unchanged) of all financial institution under the effective supervision of the Bangko Sentral ng Pilipinas. The slight increase in share was due to the increase in the number of bank branches during the year.
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BANKING HISTORY
Obras Pias - first organized credit institutions.
1869 opening of the Suez Canal facilitated trade
between the Philippines and Europe. Chartered Bank of India, Australia and China
(now known as the Standard Chartered Bank) and the Hong Kong and Shanghai Banking Corporation (HSBC) opened their respective branches in Manila.
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BANKING HISTORY 1883
Madrid-based Banco Peninsular Ultamarino also established a branch in the country; but ceased operations after four years.
End of the Spanish regime El Banco Español Filipino de Isabel (now the Bank
of Philippine Islands or BPI), which was given the sole mandate under a Spanish Royal Decree of 1854 to issue banknotes called Pesos Fuertes;
the Chartered Bank of India, a branch of the HSBC;
the Monte de Piedad;and the Banco Peninsular Ultamarino de Madrid.
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BANKING HISTORY During the American colonial period
American Bank was first to open a branch in 1901.
20th century the Americans established the Guaranty
Trust Corporation (GTC) and International Banking Corporation (IBC)
1918 Manila branch of the Yokohama Specie
Bank was given a license to do business in the Philippines.
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BANKING HISTORY 1919 – 1930
Asia Banking Corporation, the Chinese-American Bank of Commerce of Peking, China, and the National City Bank of New York opened branches in the Philippines.
Bank of the Philippine Islands was the only significant bank controlled by local interests.
Philippine National Bank (PNB) was established in 1916 with the Philippine Government as the majority stockholder. It empowered the PNB to issue bank notes and act as a depositary of government funds.
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BANKING HISTORY During the Commonwealth period (1935-
1946) Bank of Taiwan and the Nederlandsche Indische
Handelsbanks were established in the Philippines.
1939 government created the Agricultural and
Industrial Bank Philippine Bank of Communications: first bank
with genuine Filipino private capital; temporarily closed at the outbreak of the Second World War.
only Filipino-owned and Japanese banks were allowed to operate during World War II.
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BANKING HISTORY 1942
Nampo Kaihatsu Kinko (or the Southern Development Bank) opened a Manila branch
1945 National City Bank of New York: granted
the first license to reopen. Chartered Bank of India, Australia, and
China, HSBC, and Nederlandsche Indische Handelsbanks were likewise granted the license to reopen.
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BANKING HISTORY 1947
Bank of America, NT & SA (Bank of America) of San Francisco, California, was allowed to establish a branch in Manila.
1949 Central Bank of the Philippines started its
operations, the banking system consisted of seven commercial banks, three thrift banks, the sole government specialized bank, the Agricultural and Industrial Bank, and seven foreign bank branches.
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BANKING HISTORY General Banking Act (GBA) became
effective on January 3, 1949. 1952
Rural Banks Act was enacted. 1954
Agricultural and Industrial Bank merged with the Reconstruction and Rehabilitation Fund to form the Development Bank of the Philippines (DBP).
Law on Secrecy of Bank Deposits which discouraged private hoarding by encouraging the public to deposit their money in banking institutions.
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BANKING HISTORY 1963
created the Philippine Deposit Insurance Commission (PDIC).
1971 Joint International Monetary Fund-Central
Bank of the Philippines Banking Survey Commission was created. The Commission studied the banking system and proposed several measures that resulted in the promulgation of Presidential Decree Nos. 71 (amending the General Banking Act) and 72 (amending the Central Bank Act).
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BANKING HISTORY 1980s
significant circular issued by the Central Bank was Circular No. 905 (issued in 1983), which lifted the interest rate ceilings imposed by the Usury Law.
1990s classified into foreign exchange
liberalization, financial liberalization, and the passage of the General Banking Law of 2000.
2000s Republic Act 8791, the General Banking Law
of 2000, was enacted.
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BANK OF THE PHILIPPINE ISLANDS HISTORY
1828 A first attempt to establish a colonial
bank when King Ferdinand VII called for the creation of a public bank in the Philippines.
1829 Urbiztondo established the bank in the
Royal Custom House in the fortress town of Intramuros.
Named the bank El Banco Español Filipino de Isabel 2 in honor of the reigning queen of Spain.
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BANK OF THE PHILIPPINE ISLANDS HISTORY
1852 granted the authority to issue pesos
fuertes, or 'strong pesos,’ the first paper money in the Philippines.
Bank changed its name after Isabel II was dethroned in 1869, becoming more simply El Banco Español Filipino.
1897 Banco Español Filipino opened its first
branch office, Iloilo. December 10, 2013
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BANK OF THE PHILIPPINE ISLANDS HISTORY
1912 While the change in the company's
name--authorized in 1907--came only this year, it nevertheless adopted the name of Bank of the Philippine Islands (BPI).
opened its second branch office in Zamboanga.
1949 BPI lost its money-issuing privileges
altogether. BPI was converted to a private bank.
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BANK OF THE PHILIPPINE ISLANDS HISTORY
1969 Bank's relationship with the Ayala family
and businesses strengthened after Ayala Corporation took a majority share in BPI.
1974 Much of BPI's growth came through a
stream of acquisitions with its purchase of the Peoples Bank and Trust Company.
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BANK OF THE PHILIPPINE ISLANDS HISTORY
1982 BPI acquired Commercial Bank and Trust
Company, which specialized in the middle market, in 1981.
Purchase of Ayala Investment and Development Corporation.
acquired Philsec, boosting its new investment banking wing, and Makati Leasing and Financing. The latter purchase helped strengthen its own leasing arm, which was launched in 1980 and made BPI the first Philippine bank to offer leasing facilities.
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BANK OF THE PHILIPPINE ISLANDS HISTORY
1984 The People's Development Bank
acquisition formed the basis of BPI's new subsidiary, BPI Agricultural Bank.
1985 Company added Family Bank, at the
time a major mortgage and savings bank in the Philippines.
Purchase of Asian International Bank, based in New York.
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BANK OF THE PHILIPPINE ISLANDS HISTORY
1981 first in the country to offer access
via Automated Teller Machines (ATM). 1983
Express Teller system, the first in the country to provide 24-hour access to banking services.
1987 introduced the Philippines first debit-
card system.December 10, 2013
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BANK OF THE PHILIPPINE ISLANDS HISTORY
1991 introduced its Express Banking Centers.
1995 purchase of First Cavite Savings.
1996 adding CityTrust Banking Corporation.
1998 launched a 24-hour call center providing
a broad range of banking services over the telephone.
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BANK OF THE PHILIPPINE ISLANDS HISTORY 1999
BPI began talks for a three-way merger with two other prominent Filipino banks, FarEast Bank and Trust Company and Union Bank.
In November 1999 FarEast agreed to be acquired by BPI for $1.2 billion.
2000 first Filipino bank to launch its own online bank,
BPI Direct. acquired FGU Insurance Corporation, Universal
Reinsurance Corporation, Ayala Life Assurance, Ayala Health Care and Ayala Plans.
Philippines' first "bancassurance" company.
December 10, 2013
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BANK OF THE PHILIPPINE ISLANDS HISTORY
2001 FGU merged with FEB Mitsui Marine,
creating BPI/MS Insurance Corporation. 2003
BPI spun off its re-insurance operations into a merger with Malayan Reinsurance Corporation, forming Universal Malayan Reinsurance Corporation.
Bought up DBS Bank Philippines.
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BANK OF THE PHILIPPINE ISLANDS HISTORY
One of the most financially sound of all Philippine banks, posting steady increases in its net earnings despite the Asian economic crisis that occurred in the early 2000s.
After more than 150 years in existence, BPI remained a top player in the Philippines banking market.
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Entities that Introduce Funds into the Economy
Bank Organization and Operation
Classification of Banks
Number and Types of Banks Supervised by BSP
Functions of a Bank
Minimum Capitalization Requirement
List of Banks
Laws and Circulations
Bangko Sentral ng Pilipinas (BSP)
Monetary Board
Philippine Depository Insurance Corporation
“Close Now, Hear Later” Scheme
Reserves
Bank of the Philippine Islands Products and Services
Bank of the Philippine Islands Subsidiaries
OVERVIEW OF PHILIPPINE BANKING INDUSTRY
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ENTITIES THAT INTRODUCE FUNDS INTO THE ECONOMY
Banks Entities engaged in the lending of funds obtained in
the form of deposits. Quasi – Banks
Entities engaged in the borrowing of funds through the issuance, endorsement or assignment with recourse or acceptance of deposit substitutes.
Financial Intermediaries Persons or entities whose principal functions include
the lending, investing or placement of funds on evidences of indebtedness or equity deposited with them, acquired by them or otherwise coursed through them, either for their own account or for the account of others.
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BANK ORGANIZATION AND OPERATION The SEC shall not
register the articles of incorporation of any bank or any amendment thereto unless accompanied by a certificate of authority issued by the Monetary Board under its seal.
Requirements for organization of a Bank or Quasi – Bank The entity is a stock
corporation; Its funds are obtained
from the public (i.e. 20 or more persons); and
The minimum capital requirements prescribed by the Monetary Board are satisfied
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CLASSIFICATION OF BANKS Universal Banks
Primarily governed by the General Banking Law (GBL), can exercise the powers of an investment house and invest in non-allied enterprises and have the highest capitalization requirement.
Commercial Banks Ordinary banks
governed by the GBL which have a lower capitalization requirement than universal banks and can neither exercise the powers of an investment house nor invest in non-allied enterprises.December 10, 2013
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CLASSIFICATION OF BANKS Thrift Banks
These are a) Savings and
mortgage banks; b) Stock savings and
loan associations; c) Private
development banks, which are primarily governed by the Thrift Banks Act
Rural Banks Mandated to make
needed credit available and readily accessible in the rural areas on reasonable terms and which are primarily governed by the Rural Banks Act of 1992.
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CLASSIFICATION OF BANKS Cooperative
Banks majority shares are
owned and controlled by cooperatives primarily to provide financial and credit services to cooperatives. It shall include cooperative rural banks. They are governed primarily by the Cooperative Code.
Islamic Banks Banks whose
business dealings and activities are subject to the basic principles and rulings of Islamic Shari’ a, such as the Al Amanah Islamic Investment Bank of the Philippines which was created by RA 6848.December 10, 2013
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FUNCTIONS OF A BANK Deposit Loan and Discount Exchange Trust Advisory
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LIST OF BANKS
Universal Banks Commercial Banks Bank of the Philippine Islands BDO Unibank, Inc. Deutsche Bank AG Development Bank of the
Philippines East West Banking
Corporation Land Bank of the Philippines Philippine National Bank Security Bank Corporation Standard Chartered Bank The Hongkong & Shanghai
Banking Corporation
Asia United Bank Corporation
Bank of America, N. A. Bank of Commerce BDO Private Bank, Inc. Citibank, N. A. JP Morgan Chase Bank, N.
A. Korea Exchange Bank Maybank Philippines, Inc. Philippine Bank of
Communications Philippine Veterans Bank
December 10, 2013
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LIST OF BANKS
Thrift Banks Rural Banks Allied Savings Bank Bataan Development Bank BDO Elite Savings Bank, Inc. BPI Direct Savings Bank, Inc. BPI Family Savings Bank, Inc. BPI Globe BanKo, Inc., A
Savings Bank China Bank Savings, Inc. Citibank Savings, Inc. City Savings Bank, Inc. Equicom Savings Bank, Inc.
Liberty Bank (A Rural Bank), Inc.
Lipa Bank, Inc. (A Rural Bank)
Maharlika Rural Bank, Inc. Malaybalay Rural Bank,
Inc. Rural Bank of Bustos, Inc.
December 10, 2013
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LIST OF BANKS
Cooperative Banks Offshore Banking Units in the Philippines
Bataan Cooperative Bank Bukidnon Cooperative
Bank Cooperative Bank of
Aurora Cooperative Bank of
Cagayan Cooperative Bank of Cebu
BNP Paribas J. P. Morgan International
Finance, Limited Taiwan Cooperative Bank
December 10, 2013
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LAWS AND CIRCULATIONS
General Banking Laws
Special Banking Laws
General Banking Law (R.A. No. 8791)
New Central Bank Act (R.A. No. 7653)
New Rural Banks Act (R.A. No. 7353)
Private Development Banks Act (R.A. No. 4093)
Savings and Loan Association Act (R.A. No. 3779)
Thrift Banks Act (R.A. No. 7906)
December 10, 2013
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LAWS AND CIRCULATIONS
Secrecy of Bank Deposits Law (R.A. No. 1405)
Unclaimed Balances Law (Act No. 3936)
Philippine Deposit Insurance Corporation Act (R.A. No. 3591)
Anti – Money Laundering (RA 9194)
Foreign Currency Deposit Act (R.A. No. 6426) December 10, 2013
Casco, Malamion, Rama 42
BANGKO SENTRAL NG PILIPINAS (BSP) It is the central bank of the Republic
of the Philippines. Established on 3 July 1993 pursuant to
the provisions of the 1987 Philippine Constitution and the New Central Bank Act of 1993.
The BSP enjoys fiscal and administrative autonomy from the National Government in the pursuit of its mandated responsibilities.
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BANGKO SENTRAL NG PILIPINAS (BSP) Primary objectives:
To maintain price stability conducive to a balanced and sustainable growth of the economy.
To promote and maintain monetary stability and the convertibility of the peso.
Responsibilities: To provide policy directions in the areas of money,
banking, and credit To supervise bank operations To regulate the operations of finance companies and
non-bank financial institutions performing quasi-banking functions, and similar institutions (Sec. 3)
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BANGKO SENTRAL NG PILIPINAS (BSP) Powers/functions:
Issuer of currency (Sec. 49-60) Custodian of reserves (Secs. 64-66, 94, 103) Clearing channel or house; especially where the PCHC does not
operate (Sec. 102) Banker of the government – the BSP shall be the official depository
of the Government and shall represent it in all monetary fund dealings (Secs. 110- 116)
Financial advisor of the government (Secs. 123-124) – Under Article VII, Sec. 20 of the 1987 Constitution, the President may contract or guarantee foreign loans but with the prior concurrence of the Monetary Board.
Source of credit (Secs. 61-63, 81-89, 109) Supervisor of the banking system (Sec. 25) – shall include the
power to: Examine, extending to enterprises wholly or majority-owned or
controlled by the bank (Sec. 7, RA 8791); this power may not be restrained by a writ of injunction unless there is convincing proof that the action of the BSP is plainly arbitrary (Sec. 25)
Place a bank under receivership or liquidation (Sec. 30) Initiate criminal prosecution of erring officers of banks
Government agent (Secs. 117-122)
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MONETARY BOARD The body by which the powers and functions
of the Bangko Sentral are exercised.
Composition: Seven (7) members consisting of:
Chairman: Governor of the BSP A member of the cabinet to be designated
by the President of the Philippines Five (5) members who shall come from the
private sector, all of whom shall serve full-time.
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PHILIPPINE DEPOSITORY INSURANCE CORPORATION
PDIC is a government – run Philippine insurance fund. It was established on June 22, 1963 by Republic Act 3591. It guarantees increasing maximum deposit insurance coverage to P500, 000.
December 10, 2013
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“Close Now, Hear Later” Scheme Sec. 29 of the Central Bank Act does not
contemplate prior notice and hearing before a bank is placed under receivership. It is enough that such action is made the subject of a subsequent judicial review. The purpose of the scheme is to protect the depositors, creditors, stockholders and general public (Central Bank vs. CA, 220 SCRA 536).
Only stockholders representing the majority of the capital stock of a bank have the personality to file a petition for certiorari to be filed within 10 days from receipt by the board of directors of the institution of the order directing receivership, liquidation or conservatorship.
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RESERVES any part of stockholders' equity,
except for basic share capital. Reserves are amounts that are retained in the business and not distributed to the owners.
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RESERVES
Primary reserves Secondary reserves
The minimum amount of cash required to operate a bank. Primary reserves also include the legal reserves that are housed in a Federal Reserve or other correspondent bank. Checks that have not been collected are included in this amount as well.
Assets that are invested in safe, marketable, short-term securities such as Treasury bills when the demand for loans is low. Secondary reserves provide a supplemental measure of low-risk liquidity. They earn interest and can be useful in adjusting a bank's reserve totals.
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RESERVES
Investment reserves It is used to identify any assets that an
investor or a company have held in check to cover losses incurred when certain investments contained in the portfolio experience some sort of downturn in value. One of the more common examples of an investor making use of an investment reserve is an insurance company.
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BANK OF THE PHILIPPINE ISLANDS PRODUCTS AND SERVICES
PRODUCTS SERVICES
Deposit Loans Credit Cards ATM/ Debit Cards Prepaid and Gift Cards Remittance Asset Management Insurance Pre – need
Online Banking Phone Banking Mobile Banking Branch Banking ATM Banking Express Deposit
Machines Bills Payment Foreign Exchange
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Financial Reporting RequirementsManual of AccountsAccounting Entries
ACCOUNTING OF BANKING INSTITUTIONS
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BANK OF THE PHILIPPINE ISLANDS ACCOUNTING STANDARDS/ GUIDELINES
The BPI Group adopted the following amendments to existing standards and interpretations approved by the FRSC which are effective for the BPI Group beginning January 1, 2012:
PAS 12 (Amendment), Income Taxes - Deferred Tax (effective January 1, 2012)
PFRS 7 (Amendment), Financial Instruments: Disclosures - Derecognition (effective July 1, 2011)
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BANK OF THE PHILIPPINE ISLANDS ACCOUNTING STANDARDS/ GUIDELINES
New standards, amendments and interpretations to existing standards that are not yet effective and not early adopted by the BPI Group PAS 1 (Amendment), Financial Statement Presentation
- Other Comprehensive Income (effective July 1, 2012) PAS 19 (Amendment), Employee Benefits (effective
January 1, 2013) PAS 28 (Revised), Investments in Associates and Joint
Ventures (effective January 1, 2013) PAS 32 (Amendment), Financial Instruments:
Presentation – Asset and Liability Offsetting (effective January 1, 2014).
December 10, 2013
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BANK OF THE PHILIPPINE ISLANDS ACCOUNTING STANDARDS/ GUIDELINES
New standards, amendments and interpretations to existing standards that are not yet effective and not early adopted by the BPI Group PFRS 9, Financial Instruments (effective January
1, 2015). PFRS 10, Consolidated Financial Statements
(effective January 1, 2013) PFRS 12, Disclosures of Interests in Other
Entities (effective January 1, 2013) PFRS 13, Fair Value Measurement (effective
January 1, 2013)
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IAS 30 - Disclosures in the Financial Statements of Banks and Similar Financial Institutions
Objective of IAS 30
The objective of IAS 30 is to prescribe appropriate presentation and disclosure standards for banks and similar financial institutions (hereafter called 'banks'), which supplement the requirements of other Standards. The intention is to provide users with appropriate information to assist them in evaluating the financial position and performance of banks, and to enable them to obtain a better understanding of the special characteristics of the operations of banks.
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IAS 30 - Disclosures in the Financial Statements of Banks and Similar Financial Institutions Presentation and disclosure
A bank's income statement should group income and expenses by nature. [IAS 30.9]
A bank's income statement or notes should report the following specific amounts: [IAS 30.10] interest income interest expense dividend income fee and commission income fee and commission expense net gains/losses from securities dealing net gains/losses from investment securities net gains/losses from foreign currency dealing other operating income loan losses general administrative expenses other operating expenses.
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IAS 30 - Disclosures in the Financial Statements of Banks and Similar Financial Institutions
A bank's balance sheet should group assets and liabilities by nature and list them in liquidity sequence. [IAS 30.18] IAS 30.19 sets out the specific line items requiring disclosure.
IAS 30.13 and IAS 30.23 include guidelines for the limited circumstances in which income and expense items or asset and liability items are offset.
A bank must disclose the fair values of each class of its financial assets and financial liabilities as required by IAS 32 and IAS 39. [IAS 30.24]
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IAS 30 - Disclosures in the Financial Statements of Banks and Similar Financial Institutions
Disclosures are also required about: specific contingencies and commitments
(including off-balance sheet items) requiring disclosure [IAS 30.26]
specified disclosures for the maturity of assets and liabilities [IAS 30.30]
concentrations of assets, liabilities and off-balance sheet items [IAS 30.40]
losses on loans and advances [IAS 30.43] general banking risks [IAS 30.50] assets pledged as security [IAS 30.53].
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MANUAL OF ACCOUNTS – Statement of Financial Position
Asset Accounts Cash on hand Checks and other cash
items (COCI) Due from Bangko Sentral ng
Pilipinas (BSP) Due from Other Banks Financial Assets Held for
Trading (HFT) Financial Assets Designated
at Fair Value through Profit or Loss (DFVPL)
Available-for-Sale (AFS) Financial Assets
Held-to-Maturity (HTM) Financial Assets
Investments in Non-Marketable Equity Securities (INMES)
Loans and Receivables Sales Contract Receivable (SCR) Equity Investment in
Subsidiaries, Associates and Joint Venture
Bank Premises, Furniture, Fixture and Equipment
Real and Other Properties Acquired (ROPA)
Non-Current Assets Held for Sale
Goodwill Deferred Tax Asset Other Assets
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MANUAL OF ACCOUNTS – Statement of Financial Position
Liability Accounts
Deposit Liabilities Financial Liabilities Held
for Trading Financial Liabilities
Designated at Fair Value through Profit or Loss (DFVPL)
Due to Other Banks Bills Payable Bonds Payable Derivatives Liabilities Unsecured Subordinated
Debt (USD)
Margin Deposits on Letters of Credit
Due to Bangko Sentral ng Pilipinas (BSP)
Due to Philippine Deposit Insurance Corporation (PDIC)
Income Tax Payable Other Taxes and Licenses
Payable Accrued Other Expenses Unearned Income Other LiabilitiesDecember 10, 2013
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MANUAL OF ACCOUNTS – Statement of Financial PositionEquity Accounts
Paid-In Capital Stock Additional Paid-In Capital Other Equity Instruments Retained Earnings Stock Dividends
Distributable Appraisal Increment Reserve Treasury Stock Minority Interest in
SubsidiariesDecember 10, 2013
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MANUAL OF ACCOUNTS – Statement of Financial Performance Interest Income Interest Expense Provision for Losses on
Accrued Interest Income from Financial Assets
Dividend Income Fees and Commissions Income Gains/(Losses) on Financial
Assets and Liabilities Held for Trading (HFT)
Gains/(Losses) on Financial Assets and Liabilities Designated at Fair Value through Profit or Loss (DFVPL)
Foreign Exchange Profit/(Loss) Gains/(Losses) from Fair Value
Adjustment in Hedge Accounting
Gains/(Losses) from Sale/Derecognition of Non-Financial Assets
Other Income Compensation/Fringe Benefits Taxes and Licenses Fees and Commissions
Expenses Other Administrative
Expenses Depreciation/Amortization Recovery on Charged-Off
Assets Share in the Profit/(Loss) of
Unconsolidated Subsidiaries Share in the Profit/(Loss) of
Joint Ventures Income Tax Expense
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BANK’S CAPITAL IS DIVIDED INTO:TIER 1 CAPITAL TIER 2 CAPITAL A term used to
describe the capital adequacy of a bank.
It is a core capital, this includes equity capital and disclosed reserves.
Includes instruments that can't be redeemed at the option of the holder.
It is a supplementary bank capital that includes items such as revaluation reserves, undisclosed reserves, hybrid instruments and subordinated term debt.
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Computation:
Tier 1 Capital = Permanent shareholders’ equity + Disclosed reserves (including retained earnings) – Goodwill
Tier 2 Capital = General provisions/general loan-loss reserves + Revaluation reserves + Hybrid (debt/equity) capital instruments + Subordinated term debt+ Undisclosed reserves – Investments in unconsolidated financial subsidiaries – Investments in the capital of other financial institutions
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ACCOUNTING ENTRIESDEPOSIT (Liability Account)
Cash DepositCash
XXXDeposit Account
XXX
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ACCOUNTING ENTRIES Check Deposit Due from BSP XXX
Deposit AccountXXX
Deposit Account (issuer) XXXDeposit Account (depositor)
XXX
Manager’s Check XXXDeposit AccountXXX
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ACCOUNTING ENTRIESLOANS / RECEIVABLES
In CashLoan Account Receivable
XXXManager’s Check
XXX
Credited in the Current AccountLoan Account Receivable
XXXDeposit Account – Manager
XXX
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ACCOUNTING ENTRIES Interbank Loans
Interbank Loan Receivable XXXDue from BSP XXX
Collections for Payment of LoansCash (Deposit Account) XXX
Loan Account Receivable XXX
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ACCOUNTING ENTRIES Inward
Due from Foreign Bank XXXDeposit Account (remitter) XXX
OutwardDeposit Account (remitter) XXX
Due from Foreign Bank XXX
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ACCOUNTING ENTRIESPAYMENT MADE BY CREDITOR TO
SETTLE HIS ACCOUNT
Other Banks’ Checks Due from BSP XXX
Accounts Payable XXX
Due from BSP XXXDeposit Account XXX
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ACCOUNTING ENTRIES On-us Checks Deposit Account (issuer) XXX
Accounts PayableXXX
Deposit Account (issuer) XXXDeposit AccountXXX
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ACCOUNTING ENTRIESINTEREST EARNED ON THE DEPOSIT
Interest Expense XXXDeposit Account
XXX
December 10, 2013