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Savings and Mortgage Banking

This document discusses savings and mortgage banking. It defines a savings and mortgage bank as a corporation organized primarily to accumulate small savings from depositors and invest them, along with capital, in bonds, real estate mortgages, and other securities. Savings deposits can be withdrawn by depositors under conditions set by the bank's board of directors and monetary board regulations. Savings and mortgage banks reduce risk by specializing in secured loans like mortgages, allowing higher savings interest rates. The monetary board oversees bank capital levels and can limit profit distributions until minimum capital requirements are met.

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1K views21 pages

Savings and Mortgage Banking

This document discusses savings and mortgage banking. It defines a savings and mortgage bank as a corporation organized primarily to accumulate small savings from depositors and invest them, along with capital, in bonds, real estate mortgages, and other securities. Savings deposits can be withdrawn by depositors under conditions set by the bank's board of directors and monetary board regulations. Savings and mortgage banks reduce risk by specializing in secured loans like mortgages, allowing higher savings interest rates. The monetary board oversees bank capital levels and can limit profit distributions until minimum capital requirements are met.

Uploaded by

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  • Introduction
  • Learning Objectives
  • What is Savings and Mortgage?
  • Classification of Thrift Banks
  • Banking Examples
  • Savings and Mortgage Bank Definition
  • Example: Malayan Bank
  • Deposit Regulations
  • Advantages of Savings and Mortgage Banking
  • Combined Capital Accounts
  • Parties in Mortgage Transactions
  • Loans and Investments
  • Role of Monetary Board
  • Reporters

SAVINGS AND

MORTGAGE
BANKING
LEARNING OBJECTIVES:
• To identify the definition of Savings and
Mortgage Bank
• To determine the Advantage of Savings
and Mortgage Banking
• To know the role of Monetary Board in
S&M banking
What is savings?
What is mortgage?
Classification of Thrift Banks
Thrift
Banks

Private Stock Savings


Savings and Cooperative
Development and Loan
Mortgage banks Rural Banks
Banks Association
AMONG US
SAVINGS AND MORTGAGE BANK
-any corporation organized primarily for the
purpose of accumulating the small savings of
depositors and investing them, together with its
capital, in bonds or in loans secured by bonds,
real estate mortgages, and other forms of
security, as hereinafter provided.  
Example:
02

04
Savings deposits shall be returned to the
depositors or to their legal representatives upon
their petition in the manner and at the time and
under the conditions which shall be determined
by the board of directors and stipulated in
regulations which shall be in conformity with law
and with such regulations as the Monetary Board
may prescribe.
The Advantage of Savings and Mortgage
Banking
Most banks offer both secured loans,
which are backed by property, and
unsecured loans, which aren’t tied to any
sort of collateral. Savings and loans reduce
risk by specializing in mortgages and other
loans secured by land, which allows them
to offer higher interest rates on savings
deposits than most traditional banks.
The Combined Capital Accounts of each
savings and mortgage bank
The combined capital
accounts of each savings and
mortgage bank shall not be
less than an amount equal to
fifteen per cent (15%) of its
total assets, after deducting
the following assets:
(a)    Cash on hands;
(b)    Amounts due from banks, both at home and
abroad, including all deposits with the Central
Bank; and
(c)    Evidences of indebtedness of the Republic of
the Philippines and of the Central Bank, and any
other evidences of indebtedness or obligations the
servicing and repayment of which are fully
guaranteed by the Republic of the Philippines.
Two Parties in Mortgage
Transaction

a.) MORTGAGE
b.) MORTGAGEE
The loans and investments of
savings and mortgage bank
1). Loans with the security of their
own savings deposit obligations ,
or with the security of savings
deposit obligations of other banks
doing business in the Philippines:
2.) Real Estate Mortgage

- a contract whereby the


debtor secures to the creditor
the fulfilment of a principal
obligation.
3.) Chattel Mortgage

- is a loan extended to an
individual or a company on a
movable property.
4. Medium term loans
-are loans with a repayment
period between two and five years.

5. Loans secured by the pledge to


the corporation of gold or silver
bullion.
The Role of Monetary Board in Savings and
Mortgage Banking
  Whenever the capital accounts of a bank are
deficient the Monetary Board, after considering a
report of the Superintendent of Banks on the state
of solvency of the institution concerned, shall limit
or prohibit the distribution of net profits and shall
require that part or all of net profits be used to
increase the capital accounts of the institution until
the minimum requirement has been met. 
 Savings and mortgage banks
may purchase, hold and convey
real estate under the same
conditions as those governing
commercial banks as specified in
section twenty-five of this Act.
REPORTERS:
Andong, Yolanda K.
Quiam, Renan C.
BSA-2

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