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Principles of Money and Banking

Course Name Principles of Money and Banking
Banking Series

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Price: Php 16,200

This module introduces the participant to the basic principles of why banks exist. It discusses in comprehensive detail the principle of financial intermediation, banks' as well as other financial intermediaries' primary and ancillary functions, the important role they play in the country's economic development, and the regulatory environment in which they operate. The module likewise presents the structure of the Philippine banking system, including highlights of the relevant laws, rules and regulations that govern the system participants.

The module provides an excellent venue for those wishing to “learn the ropes” in banking. The anatomy of a bank as gleaned from its financial reports, where the success or failure of each of its functions, activities or services is measured and reflected, is dissected, laid bare and analyzed. The concepts of performing vs. non-performing assets, “spread” vs. “margin,” “cost of funds” vs. “cost of capital,” among other things, are defined, discussed and illustrated.

Capping the module is a comprehensive discussion of the activities on the “right and the left sides of the accounting equation” or, more specifically, the various ways by which banks source and utilize funds, i.e., from liabilities and equity to lending and investments. The module likewise examines the underlying regulations affecting these activities and, as necessary, illustrates all relevant calculations. 


Successful completion of the module enables the participant to:

  • Understand the structure of the financial system, the legal and regulatory framework within which banks operate, and the crucial role banks play in the financial intermediation process and in the proper functioning and wellbeing of the economy;
  • Learn and understand how banks operate and how their various activities, products and services are functionally linked to generate earnings that ensure their continuing viability;
  • Identify the risks, problems and issues banks wrestle with daily and the management tools employed to effectively deal with these;
  • Learn and understand the basic concepts and principles of money and interest rates, including all relevant formulas, calculations and banking applications; 
  • Discuss the various ways banks most efficiently source and utilize funds within the confines of regulations; 
  • Demystify and explain the fundamental bases and operational frameworks of the Basel Accords governing bank risks and capital requirements; and
  • Cite and discuss the more germane regulations affecting banks' key functions, activities and services.
Who should attend

This module is designed for bank personnel wishing to gain an insight on other functional areas in the bank to which they have not been previously exposed, bank management/officer trainees, business graduates aiming for a career in banking, and those in the legal profession in search of an “immersion” course in banking.

This is a required module for those enrolling in the Center's Diploma Program in Banking.


The module, which employs lectures, interactive discussions and practical exercises, is divided into four sub-modules with details as follows:

     - Financial intermediation: an overview and introduction
     - Philippine banking: historical highlights
     - Role of banks in economic development
     - Major controls the BSP uses to control money and credit
     - Structure of the Philippine banking system
     - Highlights of banking laws and regulations


     - Bank vs. non-bank financial statements: an analysis
     - How do banks make/lose money?


     - Sources of bank funds
     - Bank capital: (Basel Accord) mandatory requirements, regulatory measures 
     - Deposits: types, reserve requirements, interest calculation
     - Interbank call loans: requirements, advantages
     - BSP rediscounting facility: concept, importance, advantages


     - Uses of bank funds
     - Loans: types, pricing, interest calculation, statutory provisions
     - Investments: objectives, classifications, risks, pricing
     - Correspondent bank accounts

Resource Speakers
Mr. Larry S. Esguerra IV

is Director for Credit Programs at the Ateneo-BAP Institute of Banking, Program Director for Finance and Accounting at the Ateneo Center for Continuing Education and a Professor of Finance at the Ateneo Graduate School of Business. He is also Chief Financial Officer of a multinational construction and engineering firm and a diversified group of companies.

Mr. Esguerra has spent the greater part of his professional career in the financial services industry in the United States. Prior to his return to the Philippines, he was President and Chief Executive Officer of Golden Bay Federal Credit Union, a California-based, federally chartered credit union servicing the financial needs of military personnel and federal employees of the United States government. He also served as Vice President and Controller of Franklin Bank in Menlo Park, California; Associate Director of Capital Strategies Limited, a Hong Kong-based investment banking firm; and Resident Auditor of Citibank, N.A. in the Philippines.

Mr. Esguerra holds a Bachelors degree in accounting from the University of the Philippines and a Masters degree in Business Administration from the University of Phoenix. He is a Certified Public Accountant.