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Bank of the Philippine Islands (BPI)

BANKING INSTITUTIONS

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INTRODUCTION

Philippine Banking System History of Banks in the Philippines History of Bank of the Philippine Islands
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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.

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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 Espaol 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 Espaol 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 Espaol Filipino. 1897


Banco Espaol Filipino opened its first branch

office, Iloilo.
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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.

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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.
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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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OVERVIEW OF PHILIPPINE BANKING INDUSTRY


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

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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 Requirements for organization of a Bank or Quasi Bank
The entity is a stock

unless accompanied by a certificate of authority issued by the Monetary Board under its seal.

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

Commercial Banks
Ordinary banks

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.

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 nonallied enterprises.
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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

Islamic Banks
Banks whose business

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.

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.

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NUMBER AND TYPES OF BANKS SUPERVISED BY BSP

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NUMBER AND TYPES OF BANKS SUPERVISED BY BSP

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FUNCTIONS OF A BANK
Deposit Loan and Discount Exchange Trust Advisory

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MINIMUM CAPITALIZATION REQUIREMENT

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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
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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.

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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

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LAWS AND CIRCULATIONS


General Banking Laws
General Banking Law

Special Banking Laws


New Rural Banks Act (R.A.

(R.A. No. 8791) New Central Bank Act (R.A. No. 7653)

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)
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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)

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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 nonbank 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.

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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
The minimum amount of

Secondary reserves
Assets that are invested in

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.

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
Online Banking
Phone Banking Mobile Banking

Deposit Loans Credit Cards ATM/ Debit Cards Prepaid and Gift Cards Remittance Asset Management Insurance Pre need

Branch Banking
ATM Banking Express Deposit Machines Bills Payment Foreign Exchange
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BANK OF THE PHILIPPINE ISLANDS SUBSIDIARIES

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ACCOUNTING OF BANKING INSTITUTIONS

Financial Reporting Requirements Manual of Accounts Accounting Entries


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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).
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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 Investments in Non-Marketable

(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

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 Margin Deposits on Letters of

Credit
Due to Bangko Sentral ng

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)

Pilipinas (BSP)
Due to Philippine Deposit

Insurance Corporation (PDIC)


Income Tax Payable Other Taxes and Licenses

Payable
Accrued Other Expenses Unearned Income Other Liabilities
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MANUAL OF ACCOUNTS Statement of Financial Position


Equity 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 Subsidiaries

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MANUAL OF ACCOUNTS Statement of Financial Performance


Interest Income Interest Expense Provision for Losses on Accrued Gains/(Losses) from

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

Sale/Derecognition of NonFinancial 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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BANKS CAPITAL IS DIVIDED INTO:


TIER 1 CAPITAL
A term used to describe

TIER 2 CAPITAL
It is a supplementary bank

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.

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 ENTRIES
DEPOSIT (Liability Account)
Cash Deposit

Cash Deposit Account

XXX

XXX

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ACCOUNTING ENTRIES
Check Deposit
Due from BSP

XXX
XXX XXX XXX XXX
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Deposit Account
Deposit Account (issuer)

Deposit Account (depositor)


Managers Check

Deposit Account

XXX

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ACCOUNTING ENTRIES
LOANS / RECEIVABLES
In Cash

Loan Account Receivable Managers Check


Credited in the Current Account

XXX XXX

Loan Account Receivable XXX Deposit Account Manager XXX


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ACCOUNTING ENTRIES
Interbank Loans

Interbank Loan Receivable Due from BSP


Collections for Payment of Loans

XXX XXX

Cash (Deposit Account) XXX Loan Account Receivable XXX


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ACCOUNTING ENTRIES
Inward

Due from Foreign Bank XXX Deposit Account (remitter) XXX


Outward

Deposit Account (remitter) Due from Foreign Bank


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XXX XXX
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ACCOUNTING ENTRIES
PAYMENT MADE BY CREDITOR TO SETTLE HIS ACCOUNT
Other Banks Checks
Due from BSP

XXX XXX XXX XXX


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Accounts Payable
Due from BSP

Deposit Account

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ACCOUNTING ENTRIES
On-us Checks
Deposit Account (issuer)

XXX XXX XXX

Accounts Payable
Deposit Account (issuer)

Deposit Account

XXX

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ACCOUNTING ENTRIES
INTEREST EARNED ON THE DEPOSIT
Interest Expense Deposit Account XXX XXX

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ACCOUNTING ENTRIES
LOANS GRANTED BY A FOREIGN CURRENCY DEPOSIT UNIT TO THE BSP Loans to BSP Cash on Hand XXX XXX

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