A. Answer the following questions correctly.

1. How BSP examine and supervised banks?

In the conduct of consolidated supervision, it is necessary for the BSP to understand the banking
group’s organizational and management structure, nature and lines of businesses, financial strength
and risk exposures. Generally, this information is obtained by the BSP prior to the grant of a license to
establish a bank.
2. What are the importance of bank to you?
As a student, although banks do a variety of tasks, their main responsibility is to collect money from
those who have money—known as deposits—pool them, and then lend them to others who need
money. Banks act as middlemen between depositors (who provide the bank with funds) and
borrowers (to whom the bank lends money).
3. Why bank's are formed as corporation?
 Is to establish capital requirements, assess mergers, and oversee any subsidiaries it may hold.
Numerous bank organizations provide its directors and officers the power to incorporate
smaller banks as subsidiary businesses.

 A corporation is formed by a number of persons who pool in their resources to enter a business
for profit.

 Banks, which by their very nature, deal in large amounts of capital. Furthermore, loans are
given out for a long duration 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 to
specialization and division of labor which favor's bank's function.

 The General Banking Act (Republic Act 8791) requires that all banks shall be established as
corporations. With the exception of building and loan associations, all banking institutions shall
be stock corporations, and shall be without exception issue par value stocks.
B. Prepare sample of simple bank balance sheet.
BANCO LIM’S CORPORATION
BALANCE SHEET

AS OF DECEMBER 31, 2022