Night Depository

A night depository is a bank drop box where merchants can deposit their daily cash, checks and
credit card slips outside of normal banking hours (usually between 9 AM and 5 PM). The bank
will collects the deposits and credit them to the merchant's account on the following business
day.
Night depositories provide additional security for merchants, since they don't have to keep this
money at their business location overnight, where it might be vulnerable to theft. Night
depositories can lower risk in this regard.

Instead of the envelopes that individual customers use to make bank deposits
at ATMs (automatic teller machines), merchants often use lockable zippered bags, which are
more secure and hold a larger volume of paper.

For example, Pittsburg-based PNC Bank offers its night depository service, PNC DepositEasy,
as an "envelope-free" way to make cash or check deposits, anytime of day or night. This
includes both weekends and holidays.

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Post-Dated Checks Warehousing

Our Post-Dated Check Warehousing facility allows you to remit your post-dated check (PDC)
collections to BPI prior to maturity/posting date. The check amount is automatically credited to
your deposit account upon maturity.
Secure and timely handling of post-dated checks. Since the checks are already with us,
safekeeping and negotiation of the checks upon maturity date is assured.
Maximized funds float. Automatic and immediate credit of the check amount upon maturity to
your account means that you can do more with the funds that you have.

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warehousing

Payroll

Payroll is the sum total of all compensation a business must pay to its employees for a set
period of time or on a given date. It is usually managed by the accounting or human resources
department of a business; small-business payrolls may be handled directly by the owner or an
associate. Increasingly, payroll is outsourced to specialized firms that handle paycheck
processing, employee benefits and insurance, and accounting tasks such as tax withholding.

Payroll can also refer to the list of employees of a business and the amount of compensation
due to each of them. It is a major expense for most businesses and is almost
always deductible as such. Payroll can differ from one pay period to another because of
overtime, sick pay and other variables.

Many medium- and large-size companies contract outside payroll services to streamline the
process. Employers keep track of the number of hours each employee worked and relay this
information to the payroll service. On payday, the payroll service calculates the gross amount
the employee is owed based on the number of hours or weeks he worked during the pay period
and his pay rate. The service deducts taxes and other withholdings from earnings, and then
provides a direct deposit to the employee's bank account or a paper check.

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Deposits Pick-Up

As it becomes a security concern to transport cash collections from your location to the branch,
the option to have the bank personnel visit you becomes a wiser choice. BPI offers a solution
where you do not have to leave the confines of your business to deposit your cash. With this
facility, our bank personnel will pick-up your cash collections and safely transport these to the
branch for deposit. We make sure that every centavo you have is deposited to your account.
Safe transport of your cash collections. Your cash collections are transported by an armoured
car service. Any risk of losing funds on the way is significantly minimized.

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Asymmetric Information

Asymmetric information, also known as information failure, occurs when one party to an
economic transaction possesses greater material knowledge than the other party. This
normally manifests when the seller of a good or service has greater knowledge than the buyer,
although the reverse is possible. Almost all economic transactions involve information
asymmetries.

Asymmetric information is the specialization and division of knowledge in society as applied to

economic trade. For example, medical doctors typically know more about medical practice
than their patients. After all, through extensive education and training, doctors specialize in
medicine, whereas most patients do not. The same principle applies to architects, teachers,
police officers, attorneys, engineers, fitness instructors, and other specially trained
professionals.

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Adverse Selection

Adverse selection refers generally to a situation where sellers have information that buyers do
not have, or vice versa, about some aspect of product quality. In the case of insurance, adverse
selection is the tendency of those in dangerous jobs or high-risk lifestyles to get life insurance.
To fight adverse selection, insurance companies reduce exposure to large claims by limiting
coverage or raising premiums.

Adverse selection occurs when one party in a negotiation has relevant information the other
party lacks. The asymmetry of information often leads to making bad decisions, such as doing
more business with less-profitable or riskier market segments.

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Free Rider Problem

The free rider problem is a situation where some individuals consume more than their fair
share or pay less than their fair share of the cost of a shared resource. It is a market failure that
occurs when people take advantage of being able to use a common resource, or collective
good, without paying for it, as is the case when citizens of a country utilize public goods
without paying their fair share in taxes. The free rider problem only arises in a market in which
supply is not diminished by the number of people consuming it and consumption cannot be
restricted. Goods and services such as national defense, metropolitan police presence, flood
control systems, access to clean water, sanitation infrastructure, libraries and public
broadcasting services can be obtained through free riding.

Free riding depletes from a tax base, can be the cause of natural resource exploitation and can
even lead to the disappearance of a good's supply if enough people jump on board with the
mentality. For some people, a free ride means there is little incentive to expend money or time
toward the production of a collective good when they stand to enjoy its benefits even if they
expend none at all.
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Moral Hazard

Moral hazard is the risk that a party to a transaction has not entered into the contract in good
faith, has provided misleading information about its assets, liabilities or credit capacity. In
addition, moral hazard may also mean a party has an incentive to take unusual risks in a
desperate attempt to earn a profit before the contract settles. Moral hazards can be present
any time two parties come into agreement with one another. Each party in a contract may
have the opportunity to gain from acting contrary to the principles laid out by the agreement.

A moral hazard occurs when one party in a transaction has the opportunity to assume
additional risks that negatively affect the other party. The decision is based not on what is
considered right, but what provides the highest level of benefit, hence the reference to
morality. This can apply to activities within the financial industry, such as with the contract
between a borrower or lender, as well as the insurance industry. For example, when a property
owner obtains insurance on a property, the contract is based on the idea that the property
owner will avoid situations that may damage the property. The moral hazard exists that the
property owner, because of the availability of the insurance, may be less inclined to protect the
property, since the payment from an insurance company lessens the burden on the property
owner in the case of a disaster.

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Principal-Agent Problem

The principal-agent problem occurs when a principal creates an environment in which an

agent's incentives don't align with those of the principle. Generally, the onus is on the principal
to create incentives for the agent to ensure they act as the principal wants. This includes
everything from financial incentives to avoidance of information asymmetry.

The principal-agent problem was first written about in the 1970s by theorists from the fields of
economics and institutional theory. Michael Jensen of Harvard Business School and William
Meckling of the University of Rochester published a paper in 1976 outlining a theory of
ownership structure that would be designed in such a way as to avoid what they defined as
agency cost and its relationship to the issue of separation and control.
These issues are central to the principal-agent problem. The separation of control occurs when
a principal hires an agent, and the costs that the principal incurs while dealing with an agent
can be defined as agency costs. These agency costs can come from setting up monetary or
moral incentives set up to encourage the agent to act in a particular way.

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