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National Statistical Information Center, Bicol Branch
Regional Statistical Coordination Committee, Region V

Glossary of Terms
Money and Banking

Advances and Subscription to Capital Stock - Private Development Banks/Privately Owned Bank in the Thrift Bank Category/Rural Bank – represents credit accommodations such as conduit lending and rediscounting facilities to private development banks and other privately owned banks in the thrift bank category, as well as rural banks; and equity investments in preferred and common stocks in the said banks, if such investment is in connection with the privatization of certain branches of the Bank. The investment is subject to Monetary Board approval and shall not exceed 30% of the equity in any such bank nor shall total equity investments of the Bank exceed the prescribed aggregate ceiling on such investments. (Development Bank of the Philippines)

Agricultural Loans – represents loans granted to finance the acquisition of work animals, farm equipment and machinery, farm inputs (i.e., seeds, fertilizer, feeds), poultry, livestock and similar items; construction and/or acquisition of facilities for production, processing, storage and marketing; and efficient and effective merchandising of agricultural commodities stored and/or processed by the facilities aforecited in domestic and foreign commerce. (Development Bank of the Philippines)

Balance of Payments (BOP) - statistical statement that systematically summarizes, for a specific period, the economic transactions of a country with the rest of the world. Transactions, for the most part between residents and non-residents, consist of those involving goods, services and income; those involving financial claims on and liabilities to the rest of the world; and those (such as gifts) classified as transfers which are real resources and financial claims provided to, or received from the rest of the world without the corresponding resources and financial claims received or given in exchange. (Bangko Sentral ng Pilipinas)

Bank Lending Rate – weighted average interest rate charged by commercial banks on loans granted during a given period of time. Monthly data is derived as the ratio of actual interest income on their peso-denominated loans (i.e. demand/time loans, bills discounted, mortgage contract receivables, and restructured loans, whether secured or unsecured) to the total outstanding level of these loans. Weekly data refer to the weighted average interest rate on loans granted for all maturities during the reference period. (Bangko Sentral ng Pilipinas)

Benefit Payments – disbursements for retirement, disability, death, maternity, sickness and funeral benefits. (Social Security System)

Bonds – investments in bond interest bearing certificates of indebtedness. (Government Service Insurance System)
  

Claims and Benefit Payments – expenses, compensation for and indemnity of losses. (Government Service Insurance System)

Commercial Banks – these are corporations which in addition to the general powers incident to corporations are authorized to accept drafts and issue letters of credit; discount and negotiate promissory notes, drafts, bills of exchange, and other evidences of debts; receive deposits; buy and sell foreign exchange and gold or silver bullion; and lend money against securities consisting of personal property or first mortgages on improved real estates and the insured improvements thereon. (Bangko Sentral ng Pilipinas)

Composite Insurance Company – an insurance company authorized to transact both life and general non-life businesses. (Insurance Commission)

Contribution – the amount paid to the Social Security System (SSS) by and on behalf of the member in accordance with Section 18 of the SSS Act of 1997 (R.A. 8282). (Social Security System)

Currency in Circulation – currency issue of the BSP (Bangko Sentral ng Pilipinas) less cash on hand of the National Treasury and of the DMBs (Deposit Money Banks). (Bangko Sentral ng Pilipinas)

Currency Issue – this consist of notes and coins issued by BSP, excluding those in the vault of the BSP and its regional offices and units and those in transit to/from regional offices/units. (Bangko Sentral ng Pilipinas)

Demand Deposits – deposits payable on demand and transferable by check or otherwise usable in making payments. (Bangko Sentral ng Pilipinas)

Deposit Money Banks (DMBs) – these are financial institutions other than monetary authorities that have liabilities in the form of deposits payable on demand and transferable by check. (Bangko Sentral ng Pilipinas)

Deposit Substitutes – instruments used as an alternative form of obtaining funds from the public other than deposits, through the issuance, endorsement or acceptance of debt instruments for the borrowers’ own account. These represent all types of money market borrowings by banks like promissory notes, repurchase agreements, commercial papers/securities and certificates of assignment/participation with recourse. (Bangko Sentral ng Pilipinas)

Domestic Liquidity – consists of money supply, peso savings and time deposits and deposit substitutes of money generating banks or DMBs. Also referred to as M3. (Bangko Sentral ng Pilipinas)

Domestic Non-Philippine National Company – company incorporated in the Philippines with majority of its stocks being foreign-owned. (Insurance Commission)

Domestic Philippine National Company – domestic company incorporated in the Philippines with majority of its stocks being Filipino-owned. (Insurance Commission)

Educational Assistance Loans – loans granted to poor but deserving post secondary students enrolling in certain degree or non-degree priority courses implemented under the Educational Assistance Act of 1976 (P.D. No. 932) as well as DBP Board resolution 711, s. 1977, otherwise known as the "Study Now Pay Later Program". (Development Bank of the Philippines)

Employees Compensation Insurance Fund – amount set aside for payment of the Employees Compensation benefits such as disability, sickness, survivorship, funeral, etc. (Government Service Insurance System)

Equity – represents National Government (NG) subscription payments to the authorized capital stocks of government-owned or controlled corporations. (Bangko Sentral ng Pilipinas)

Equities and Other Investments – represents investments in shares of stocks, including any unpaid subscription, in companies/institutions of allied undertaking, as allowed under existing laws, rules and regulations. Other investments include those made for public relations purposes and/or to qualify as member/subscriber of clubs/other non-profit organizations/public utilities, including deposits made therein. (Development Bank of the Philippines)

Expenditures – the sum of benefit payments and operating expenses. (Social Security System)

Financial Rehabilitation Loans – refers to special financing extended to bonafide calamity victims to help reconstruct existing viable projects damaged by natural calamities such as floods, earthquakes, drought. (Development Bank of the Philippines)

Foreign Company – a company doing business in one country but incorporated in another country. (Insurance Commission)

General Insurance Fund – amount set aside in payment for losses/damages under the non-life insurance operations. (Government Service Insurance System)

Government Loans – represents loans to provinces, cities and municipalities to finance the construction of self-liquidating projects and other public improvements such as markets, waterworks systems, public town halls, slaughterhouses and electric plants, and for cadastral surveys and purchase of heavy equipment and machinery. (Development Bank of the Philippines)

Government Securities – bonds, securities, promissory notes or other evidence of indebtedness of the Government of the Philippines (e.g., Treasury Bills, Treasury Notes, Government Bonds). (Social Security System)

Government Service Insurance System (GSIS) – a government-owned and controlled corporation which provides retirement annuities, insurance and other services for government employees, and insurance for government-owned properties. (Bangko Sentral ng Pilipinas)

Gross Domestic Credits – consist of domestic securities, loans and advances of DMBs and the BSP. Credits to BSP include holdings of Central Bank/BSP Certificates of Indebtedness and reverse repurchase loans of DMBs. Domestic credits are subdivided into public and private credits. (Bangko Sentral ng Pilipinas)

Housing Loans – bonds, securities, promissory notes or other evidence of indebtedness of shelter agencies of the National Government of financial intermediaries to finance housing loans of members and in long term direct individual or group housing loans (e.g., releases to NHMFC/HDMF, house repair and/or improvement. (Social Security System)

Industrial Loans – represents loans granted to finance the establishment, rehabilitation, development, expansion and operation of industrial projects, enterprises engaged in the purchase, processing and transformation of raw materials, manufacture of goods, as well as the marketing thereof, including the purchase of industrial machinery, equipment and implements used or to be used therein, and loans granted to Participating Financial Institutions (PFIs). (Development Bank of the Philippines)

Insurance Premium – contribution of the account of the employee whether made by themselves or their employers for social security reasons. (Government Service Insurance System)

Interbank Call Loan(IBCL) Rate – the rate charged by a bank on its loans to other banks for periods not exceeding 24 hours for purposes of covering reserve deficiencies. (Bangko Sentral ng Pilipinas)

Investments – amount of money or other resources measured in terms of money placed on activities or other forms of assets for the purpose of earning profits. (Government Service Insurance System)
  

Liability – an amount owed (i.e. payable) by an individual or entity for items or services received, expenses incurred, assets acquired and amounts received but not yet earned. (Bangko Sentral ng Pilipinas)

Licensed Company – a company that has been issued a license or certificate of authority to provide insurance coverage and services in the Philippines. (Insurance Commission)

Life Insurance Company – a company that insures lives of persons through policy issuances, which may include health and accident policies. (Insurance Commission)

Loans Granted – loans approved by banks, which had been credited to a borrower’s account or made available to him during a given period of time. Loans granted are classified by purpose, by debt instrument, and by industry. (Bangko Sentral ng Pilipinas)

Loans Outstanding - the unpaid balance of loans as of a certain date. All categories (except on type of debt instruments) on loans outstanding of commercial banks do not include past due items, items in litigation, domestic and foreign bills-clean. Loans outstanding are classified by region, by purpose, by debt instrument, and by industry. In addition, they are classified by type of security and by borrower. (Bangko Sentral ng Pilipinas)

Medicare Insurance Fund - fund set aside for payment of claims of members against hospitalization, surgical and medical expenses. (Government Service Insurance System)

Member Loans – short and medium term loans, which could be availed of by the members from the System, e.g., salary, calamity or emergency loans. (Social Security System)

Money Supply – consist of currency in circulation and peso deposits subject to check of the monetary system. Also called Narrow Money. (as defined under M.B. Res. 404 dated 14 February 1975) (Bangko Sentral ng Pilipinas)

National Government or the term Government – the central authority of the country and includes all agencies covered by the national budget. (Bangko Sentral ng Pilipinas)

Net Domestic Credits – consist of domestic credits of the BSP, (net of National Government deposits and loans and advances to DMBs) and domestic credits of DMBs (net of National Government deposits, as well as inter-commercial banks’ loans and advances). (as defined under MB res. 404 dated 14 February 1975) (Bangko Sentral ng Pilipinas)

Net Foreign Assets – these are assets less liabilities denominated in foreign currencies of the Monetary Authorities and DMBs which are either of short term, medium or long term maturities. Short term accounts would fall under net international reserves while the rest would be under medium/long term and non-monetary accounts. (Bangko Sentral ng Pilipinas)

Net Other Accounts – accounts of the BSP and DMBs not classified elsewhere. Basically, this account is the difference between the miscellaneous assets and the miscellaneous liabilities and capital accounts of the BSP and DMBs. (Bangko Sentral ng Pilipinas)

New Manila Reference Rate (New MRR) – the weighted average interest rate announced by BSP which is based on the combined promissory note and time deposit transactions of commercial banks. It replaces the old MRR as reference rate of banks and non-bank financial intermediaries in the pricing of floating rate loans. (Bangko Sentral ng Pilipinas)

Non-Life Insurance Company - an insurance company concerned with insuring property and casualty lines of business and other forms of insurance other than life. (Insurance Commission)

Non-Money Supply Deposits - total of quasi-money, marginal deposits and deposit substitutes of local governments and semi-government entities and residents with DMBs. (Bangko Sentral ng Pilipinas)

Old Manila Reference Rate (Old MRR) – weighted average interest rate announced by the former Central Bank of the Philippines which is based on promissory note transactions of commercial banks. The old MRR is used as reference rate of banks and non-bank financial intermediaries in the pricing of floating rate loans. (Bangko Sentral ng Pilipinas)

Operating Expenses – administrative and operational expenses such as salaries and wages, supplies and materials, depreciation, and the maintenance of offices of the Social Security System (SSS). (Social Security System)

Operating Expenses and Other Miscellaneous Disbursements – expenses necessary and incidental to operation. (Government Service Insurance System)

Optional Life Insurance Fund – fund reserve for payments on unlimited optional life insurance like maturity cash surrender value, death, accidental death or waiver of premiums in case of permanent disability and includes sales redemption insurance, mortgage redemption insurance and group term insurance claims. (Government Service Insurance System)

Other Earnings – other income such as penalty on contribution arrearages, rental, etc. (Social Security System)
  

Peso Deposits Subject to Check (or demand deposits) – includes "managers and cashiers’ checks" as well as deposits automatically transferred from savings to demand deposits, but excludes demand deposits by the National Government and commercial bank holdings of "checks and other cash items". (Bangko Sentral ng Pilipinas)

Policy Loan – loan on the security of policy which shall not exceed 50 percent of the net cash value for regular membership policy, or 90 percent of the net cash value for optional policy. (Government Service Insurance System)

Private Development Banks – banks which cater to the capital needs and demand for investment credit or medium to long term loans for the promotion of growth of industry and agriculture at reasonable costs. Government financial institutions such as the Development Bank of the Philippines (DBP) and the Philippine National Bank (PNB), as well as such other non-bank financial intermediaries like GSIS and SSS and other government agencies and instrumentalities such as the National Economic Development Authority (NEDA) and the Department of Agriculture (DA), provide private development banks with support and assistance whether in the form of savings deposits or with technical know-how. (Private Development Bank Act or RA No. 4093, as amended) (Bangko Sentral ng Pilipinas)

Private Securities – securities in the form of a) bonds, securities, promissory notes or other evidence of indebtedness of the following: i) banks doing business in the Philippines and in good standing with BSP; ii) educational or medical institutions; iii) prime corporations or multilateral institutions; b) domestic or foreign mutual funds in existence for at least three years; c) foreign currency deposits for triple "A" foreign currency-dominated debts, prime and non-speculative equities; or d) loans secured by such collaterals like cash, government securities or guarantees of multilateral institutions. (Social Security System)

Professional Reinsurer – a company whose business is mainly reinsurance and related services. (Insurance Commission)

Public Sector – consists of the national government, local governments, government-owned or controlled corporations and government monetary institutions. (Bangko Sentral ng Pilipinas)

Quasi-Money Deposits – consists of savings and time deposits of DMBs. (Bangko Sentral ng Pilipinas)

Real Estate Loans – represents loans granted for the purchase of lots; construction, repair and/or improvements of home buildings; housing and hotel projects; hospitals; commercial; and school buildings against security of real estate and/or other acceptable assets. (Development Bank of the Philippines)

Real Estate Loans – loans secured by real estate properties mortgaged with the GSIS. (Government Service Insurance System)

Reinsurance – method in which an insurer (by means of a contract) relieves itself of a portion of the liability it has contractually assumed under an original obligation in order to reduce peak liabilities or to distribute the risk, thereby reducing the effect of the law of averages with respect to its net retained liability. (Insurance Commission)

Repayments of Investments – amortization payment applied to the principal amount of loan or investments in salary loan, policy loan or real estate loan. (Government Service Insurance System)

Reserves – amount set aside from net income or unassigned surplus to ensure the payment of benefits and other contingencies. (Government Service Insurance System)

Revenue – sum of contribution collections, investment earnings and other income. (Social Security System)

Reserve Fund – accumulation of all revenues of the SSS that are not needed to meet the current benefit obligations, administrative and operational expenses. (Social Security System)

Rural Banks – mostly government-sponsored/assisted banks which are largely privately-owned that provide credit facilities to farmers and merchants, or to cooperatives of such farmers and merchants under reasonable terms and in general, to the people of rural communities. They are classified into those with and without authority to accept demand deposits. (Bangko Sentral ng Pilipinas)

Salary Loan – loans granted to members in the amounts equivalent to one month salary for those whose membership with the system is 20 months and over; two months salary if membership is 40 months or over; and three months salary if membership is 60 months or over. (Government Service Insurance System)

Savings Bank – banks organized for the purpose of accumulating the savings deposits, and investing them for specified purposes, such as readily marketable bonds and securities, commercial papers and accounts receivables, drafts, bills of exchange, acceptance or notes arising from loans, whether secured or unsecured, mortgages on real financing for home building or home development, and such other investments and loans as allowed by the Monetary Board of the BSP in pursuit of national economic objectives. (General Banking Act or RA No. 337, as amended) (Bangko Sentral ng Pilipinas)

Savings Deposits – interest bearing deposits, which are withdrawable upon presentation of properly, accomplished withdrawal slips together with the corresponding passbook. (Bangko Sentral ng Pilipinas)

Short Term Notes – written promise to pay within a fixed time at fixed interest rate issued by the debtor. (Government Service Insurance System)

Social Insurance Fund – amount set aside for the payment of social insurance benefits like retirement insurance, disability retirement, death and life insurance benefits. (Government Service Insurance System)

Social Security System (SSS) – government-sponsored scheme to provide old age, death, disability and sickness benefits to workers in the private sector. This program is compulsory for all paid employees not over 60 years and for their employers. (Bangko Sentral ng Pilipinas)

Specialized Government Bank – consists of the Al-Amanah Islamic Investment Bank of the Philippines which is a government financial institution established to promote and accelerate the socio-economic development of the Autonomous Region of Muslim Mindanao by performing banking, financing and investment operations and by establishing and participating in agricultural, commercial and industrial ventures based on the Islamic concept of banking. (Bangko Sentral ng Pilipinas)

Stocks – investments in shares of stocks, common or preferred, traded subsidiaries. (Government Service Insurance System)

Stock Savings and Loan Associations – these are banks engaged in the accumulation of savings mainly of stockholders in specified undertakings. They are primarily concerned with servicing the needs of the household by providing personal finance and long term financing for home building and development. (Savings and Loan Association Act or RA No. 3779, as amended) (Bangko Sentral ng Pilipinas)

Surplus – increments in net worth arising from net earnings, appreciation, donations, grants, etc. (Government Service Insurance System)

Thrift Banks – banks primarily mobilize small savings, and provide loans at generally longer and easier terms than do commercial banks as they cater to the lower income groups. Loans are usually for basic economic needs, such as housing. Small producers such as farmers, cottage industry entrepreneurs, and consumers rely on these banks for the financing of their production and consumption requirements. There are three types of banks, which are categorized under the general grouping of thrift banks namely: savings banks, private development banks and stock savings and loan associations. All types of thrift banks may perform any or all of the following:

  1. accept savings and time deposits;
  2. grant loans, whether secured or unsecured;
  3. invest in readily marketable bonds and other debt-securities, commercial papers and accounts receivable, drafts, bills of exchange, acceptances or notes arising out of commercial transactions;
  4. issue domestic letters of credit;
  5. engage in trust business, with Monetary Board approval;
  6. with prior Monetary Board approval, deal in foreign exchange, and Foreign Currency Deposit Unit deposits under Circular No. 343;
  7. with prior Monetary Board approval, and in accordance with specific guidelines with respect to paid-in capital, accept checking accounts, engage in quasi-banking operations (money market); and
  8. with prior approval, deal in government securities or collect taxes, subsidies and other revenues of the government. (Bangko Sentral ng Pilipinas)

Time Deposits – interest bearing deposits with specific maturity dates and evidenced by certificates issued by the bank. (Bangko Sentral ng Pilipinas)

 

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