TOPIC-2_BANK-ORGANIZATION (1) BANFIN.pptx

BANKING AND FINANCIAL INSTITUTION

1. CHAPTER 2 BANK ORGANIZATION

2. GROUP MEMBERS: Arsenio, Regene Bantayan, Kyla Hicayen, Kyla Janolino, Shandenel Roma, Gemma Rose D.

3. Any business whether big or small must be formed under the accepted principle of financing and banking. - means an insured state member bank, bank holding company, or savings and loan holding company that obtains audit services that are used to satisfy requirements. BANK ORGANIZATION

4. Economic Justification for banks > In determining this particular aspects, the organizers must be armed with facts and figures which they have to analyze carefully before they can proceed with their project. In establishing banks It is important to: Accertain the degree of competition in the business and the degree of risk, Potential costumers, Availability of manpower, The business and products within the locale, The habbits and custom of people and such other matters which will contribute to the banks successful operation. 01 02 Selection of Stockholders > They have to content themselve with the selection of stockholders. This is an essential consideration in setting up a bank beacuse on such choice may depend its success or failure. In selecting the stockholders you should accertain that they have a good moral character, adequate knowledge in the business of banking, equipped with necessary capital, known in the community as honest, righteous citizenz, also who are willing and able to contribute the banks success. GENERAL ASPECT IN ESTABLISHING BANK

5. > It is depends upon economic survey. The survey will include the level of income in the community, the business and industries, the population of the place, the number of banks or financial institutions, and factor which will lead to a decision on the size of the organization to be set up. 03 04 > The organizers will find easier to determine the amount of capital to be raised after they have agreed on the type of bank. They must be aware that at least the minimum requirements shoud be met. * These are to cover organizational expenses * To carry on operations which wil require current capital and, * To provide for acquisition of fixed assets and include enough room for the initial cost of operation. The determination of the kind of bank to be formed Determination of the amount of capital to be raised GENERAL ASPECT IN ESTABLISHING BANK

6. (AN ACT PROVIDING FOR THE REGULATION OF THE ORGANIZATION AND OPERATIONS OF BANKS, QUASI-BANKS, TRUST ENTITIES AND FOR OTHER PURPOSES) REPUBLIC ACT NO. 8791

7. "ORGANIZATION, MANAGEMENT AND ADMINISTRATION OF BANKS. QUASI-BANKS AND TRUST ENTITIES" SECTION 8 - 22

8. "ORGANIZATION, MANAGEMENT AND ADMINISTRATION OF BANKS. QUASI-BANKS AND TRUST ENTITIES" Sec. 8 Organization Sec. 9 Issuance of Stocks Sec. 10 Treasury Stocks Sec. 12 Stockholdings of Family Groups or Related Interests Sec. 13 Corporate Stockholdings Sec. 14 Certificate of Authority to Register Sec. 15 Board of Directors Sec. 16 Fit and Proper Rule

9. "ORGANIZATION, MANAGEMENT AND ADMINISTRATION OF BANKS. QUASI-BANKS AND TRUST ENTITIES" Sec. 17 Directors of Merged or Consolidated Banks Sec. 18 Compensation and Other Benefits of Directors and Officers Sec, 19 Prohibition on Public Officials Sec. 20 Bank Branches Sec. 21 Banking Days and Hours Sec. 22 Strikes and Lockouts

10. LICENSING OF FOREIGN BANKS Sec. 72 Transacting Business in the Philippines Sec. 73 Acquisition of Voting Stock in a Domestic Bank Sec. 74 Local Branches of Foreign Banks Sec. 75 Head Office Guarantee Sec. 76 Summons and Legal Process Sec. 77 Laws Applicable Sec. 78 Revocation of License of a Foreign Bank

11. WHY BANKS ARE ESTABLISHED AS CORPORATIONS A corporation is formed by a number of persons who pool in their resources to enter a business for profit. Bank, which by their very nature, deal in large amounts of capital. Furthermore, loans are given out for a long durations in some instances and only an entity with a long tenure could be beneficial in such a case. The delegation of management to a few who compose the board of directors, will allow flexible management, expansion, as well as departmentalization. This method of administration leads to specialization and division of labor which favor's bank's function.

12. BANK LOCATION Anyone imbued with business sense will perhaps know that a poor location will be deterrent to an otherwise profitable venture. Customers always look for places which offer a wide variety of conveniences in meeting their needs. There are many factors which will influence the choice of the bank's location. To fulfill the needs of strategic sites, the organizers must have in mind the availability of transportation. Whether the location is within the commercial district or not, the accessibility of the place both to human and vehicular traffic should be considered. This will enhance the chances of the bank attract the greatest number of potential depositors and customers.

13. ROLE OF REGULATORY GOVERNMENT BODIES IN BANK ORGANIZATION The role of the regulatory government bodies in the bank organization is to facilitate the processing and approval of pertinent documents to make the organization legal. THE SECURITIES AND EXCHANGE COMMISSION For its part, also duly examines the paper to see it that all requirements are met before issuing the certificate of Incorporation. SEC prote fair dealing, the disclosure importan information and to prevent fraud.

14. THANK YOU & GOD BLESS