The Philippine Banking System

The Philippines is known as an archipelagic country in the Southeast Asia

Region because of at least 100 million residents. It is branded as a tiger cub
economy since the potential to the tap market is no doubt an option for the
investors. The banks in the country are well-established from liquidity
standpoint. The Bangko Sentral ng Pilipinas (BSP) is the central bank of the
Republic of the Philippines. It was established on July 3, 1993 pursuant to the
provisions of the 1987 Philippine Constitution and the New Central Bank Act
of 1993. The BSP took over from the Central Bank of Philippines, which was
established on January 3, 1949 as the country’s central monetary authority.
The BSP enjoys fiscal and administrative autonomy from the National
Government in the pursuit of its mandated responsibilities. The Philippines
banking system from BSP web site is composed of: Universal and
commercial banks are the core banking system that have a full service
system like accepting deposits, making loans and providing fee-based services
and also a universal banks provides investment in banking function. The top
universal and commercial bank is Banco De Oro Unibank Inc. who is currently
the largest bank in the Philippines in terms of assets. A total asset as of
December 31, 2019 is 3,069,394.98 according to the BSP web site. Thrift
banks it is composed of savings and mortgage banks, private development
banks, stock saving and loan associations and micro finance thrift banks. This
institution generally helps small and medium enterprises and individuals with
working capital and business products. The top thrift bank is the BPI Family
Savings Bank Inc.. Their total asset as of December 31, 2019 is 284,212.91
according to the BSP website. Rural and cooperative banks differ by
ownership. The rural banks are privately owned and managed while
cooperative banks are organized and owned by the cooperatives. Small
institutions that mainly assist farmers during farming cycle to sell their goods
to market. The top rural and cooperative bank is the One Network Bank Inc.
which is their total assets as March 31, 2018 is 27,219.54 according to the BSP
website. Non-banks with quasi-banking system is an institution that
borrows funds from 20 or more lenders for the purposes of relending or
purchasing receivables and other obligations. Some institutions that are non-
banks are the Cebu International Finance Corporation, RCBC Capital
Corporations, Toyota Financial Services Philippines Corporation and
Philippines Depository and Trust Corporation. In terms of ownership, they
have foreign bank branches and subsidiaries including a commercial and thrift
banks, most importantly government banks. Our banking system is
fundamental healthy and properly functioning economy. For the locals that
attentive in business, they go to the banks that would provide them capital.
And for depositors, depositing in bank would be the best option where to keep
their money. Our country’s majority of consumers prefer to pay bills over the
counter while other countries consumers are most prefer to use banks.

Sources:

http://www.bsp.gov.ph/banking/directory.asp?
InstitutionTypeID=14&submit=Find

http://www.bsp.gov.ph/banking/psoc_rb/Rank%20(Total%20Assets).htm

http://www.bsp.gov.ph/banking/psoc/by_ranks/assets.htm

http://www.bsp.gov.ph/banking/psoc_tb/assets.htm

http://www.bsp.gov.ph/banking/bspsup.asp