PDIC

The PDIC is also authorized to conduct independent special examination of banks and may inquire into or examine deposit accounts of ailing banks in the event

• there is a finding of unsafe and unsound banking

  practices

• The bank is in the verge of insolvency

• The bank is in the liquidation proceeding

• The bank is under receivership

S1 – The Bangko Sentral ng Pilipinas is composed of 7 members in the board.

S2 – The PDIC is composed of 5 members of the board.

• All are correct

• All are wrong

• Only S1 is incorrect

• Only S2 is incorrect

The following are functions of PDIC, except:

• Deposit Insurer

• Co-regulator of Banks

• Receiver and Liquidator of Closed Banks

• Administrator of Banks

S1 - Examination involves an evaluation of the current status of a bank and determines its compliance with the set standards regarding solvency, liquidity, asset valuation, operations, systems, management, and compliance with banking laws, rules and regulations. Such a process then involves an intrusion into a bank’s records.

S2 - Investigation is conducted based on specific findings of certain acts or omissions which are subjectof a complaint or a Final Report of Examination made by PDIC

• All are correct

• All are wrong

• Only S1 is incorrect

• Only S2 is incorrect

The maximum deposit insurance coverage under the

PDIC Law is ________________. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together.

• P100,000 per depositor

• P500,000 per depositor

• P1million per depositor

• P2million per depositor

The PDIC may propose to adjust the minimum deposit insurance coverage, subject to the approval of the President of the Philippines, in case of _________________________ that may have systemic consequences.

• exercise of the police power of the State

• exercise of eminent domain

• bankruptcy of the majority of banks in the Philippines

• a condition that threatens the monetary and financial stability of the banking system

It means a deposit in an insured bank made available to a depositor by the Corporation as payment of insured deposit of such depositor in a closed bank and assumed by another insured bank.

• Deposit substitutes

• Demand deposit

• Trust deposit

• Transfer deposit

S1 - A joint account regardless of whether the conjunction ‘and,’ ‘or,’ ‘and/or’ is used, shall be insured separately from any individually-owned deposit account.

S2 - If the account is held jointly by two or more natural persons, or by two or more juridical persons or entities, the maximum insured deposit shall be divided into as many equal shares as there are individuals, juridical persons or entities.

S3 - If the account is held by a juridical person or entity jointly with one or more natural persons, the maximum insured deposit shall be presumed to belong entirely to such natural person.

• Only S1 is incorrect

• Only S2 is incorrect

• Only S3 is incorrect

• Both S1 and S2 are incorrect

• Both S2 and S3 are incorrect

R.A. No. 9576 stipulates that PDIC will pay deposit insurance for the following accounts or transactions, except:

• Investment products such as bonds, securities and trust accounts;

• Deposit accounts which are unfunded, fictitious or fraudulent;

• Deposit products constituting or emanating from unsafe and unsound banking practices;

• Deposits that are determined to be proceeds of an unlawful activity as defined under the Anti-Money Laundering Law.

• All of the above

S1 - Membership of banks to PDIC is mandatory.

S2 - As for Philippine banks with branches outside the country, RA 9576 stipulates that subject to the approval of the Board of Directors, any insured bank with branch outside the Philippines may elect to include for insurance its deposit obligations payable at such branch.

S3 - Foreign currency deposits are also insured by PDIC.

• Only S1 is incorrect

• Only S2 is incorrect

• Only S3 is incorrect

• All are correct