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.
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.
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".
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.
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.
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.
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).
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.
Source: 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.
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.
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.
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).
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.
Demand Deposits deposits payable on demand and
transferable by
check or otherwise usable in making payments.
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.
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.
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.
Equity represents National Government (NG)
subscription payments
to the authorized capital stocks of government-owned or
controlled
corporations.
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.
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.
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.
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.
Loans Granted loans approved by banks, which
had been credited to a
borrowers account or made available to him during a given period
of time. Loans granted are classified by purpose, by debt instrument,
and by industry.
Loans Oustanding - 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.
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)
National Government or the term Government the
central authority of the
country and includes all agencies covered by the national budget.
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).
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.
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.
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.
Non-Money Supply Deposits - total of quasi-money,
marginal deposits
and deposit substitutes of local governments and semi-government
entities and residents with DMBs.
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.
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".
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).
Public Sector - consists of the national
government, local governments,
government-owned or controlled corporations and government
monetary institutions.
Quasi-Money Deposits consists of savings and
time deposits of DMBs.
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.
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).
Savings Deposits interest bearing deposits,
which are withdrawable upon
presentation of properly, accomplished withdrawal slips together
with the corresponding passbook.
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.
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.
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).
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:
a. accept savings and time deposits;
b. grant loans, whether secured or unsecured;
c. 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;
d. issue domestic letters of credit;
e. engage in trust business, with Monetary Board approval;
f. with prior Monetary Board approval, deal in foreign
exchange, and Foreign Currency Deposit Unit deposits
under Circular No. 343;
g. 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
h. with prior approval, deal in government securities or collect
taxes, subsidies and other revenues of the government.
Time Deposits interest bearing deposits with
specific maturity dates and
evidenced by certificates issued by the bank.
Source: Bangko Sentral ng Pilipinas
Benefit Payments disbursements for retirement,
disability, death, maternity,
sickness and funeral benefits.
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).
Expenditures the sum of benefit payments and
operating expenses.
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).
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.
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.
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).
Other Earnings other income such as penalty on
contribution arrearages,
rental, etc.
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.
Revenue sum of contribution collections,
investment earnings and other
income.
Reserve Fund accumulation of all revenues of
the SSS that are not needed
to meet the current benefit obligations, administrative and
operational expenses.
Source: Social Security System
Bonds investments in bond interest bearing
certificates of indebtedness.
Claims and Benefit Payments expenses,
compensation for and indemnity of
losses.
Employees Compensation Insurance Fund amount
set aside for payment of
the Employees Compensation benefits such as disability, sickness,
survivorship, funeral, etc.
General Insurance Fund amount set aside in
payment for losses/damages
under the non-life insurance operations.
Insurance Premium contribution of the account
of the employee whether
made by themselves or their employers for social security reasons.
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.
Medicare Insurance Fund - fund set aside for
payment of claims of members
against hospitalization, surgical and medical expenses.
Operating Expenses and Other Miscellaneous
Disbursements expenses
necessary and incidental to operation.
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.
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.
Real Estate Loans loans secured by real estate
properties mortgaged with
the GSIS.
Repayments of Investments amortization payment
applied to the principal
amount of loan or investments in salary loan, policy loan or real
estate loan.
Reserves amount set aside from net income or
unassigned surplus to
ensure the payment of benefits and other contingencies.
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.
Short Term Notes written promise to pay within
a fixed time at fixed
interest rate issued by the debtor.
Social Insurance Fund amount set aside for the
payment of social
insurance benefits like retirement insurance, disability
retirement,
death and life insurance benefits.
Stocks investments in shares of stocks, common
or preferred, traded
subsidiaries.
Surplus increments in net worth arising from
net earnings, appreciation,
donations, grants, etc.
Source: Government Service Insurance System
Composite Insurance Company an insurance
company authorized to
transact both life and general non-life businesses.
Domestic Non-Philippine National Company
company incorporated in the
Philippines with majority of its stocks being foreign-owned.
Domestic Philippine National Company domestic
company incorporated in
the Philippines with majority of its stocks being Filipino-owned.
Foreign Company a company doing business in one
country but
incorporated in another country.
Licensed Company a company that has been issued
a license or certificate
of authority to provide insurance coverage and services in the
Philippines.
Life Insurance Company a company that insures
lives of persons through
policy issuances, which may include health and accident policies.
Non-Life Insurance Company - an insurance company
concerned with
insuring property and casualty lines of business and other forms of
insurance other than life.
Professional Reinsurer a company whose business
is mainly reinsurance and
related services.
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.
Source: Insurance Commission
Glossary
of Terms
|
