Gelyn D.

Baldrias
MKA22

The Philippine Financial System Structure

Financial Institutions
Financial Institutions are the intermediaries that mobilize savings and facilitate the allocations of
funds in an efficient manner.
a. Central Bank
The BANGKO SENTRAL NG PILIPINAS (BSP) is the Central bank of the
Republic of the Philippines. It was established on 3 July 1993 pursuant to the
provisions of the 1987 Philippines Constitution and the New Central Bank Act of
1993.The BSP took over from the Central Bank of Philippines, which was
established on 3 January 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.
b. Banking Institutions
Private Banking
 Commercial banks
An institution which accepts deposits, makes business loans, and offers related services.
Commercial banks also allow for a variety of deposit accounts, such as checking, savings, and time
deposit. These institutions are run to make a profit and owned by a group of individuals, yet some
may be members of the Federal Reserve System. While commercial banks offer services to
individuals, they are primarily concerned with receiving deposits and lending to businesses.
An institution which accepts deposits, makes business loans, and offers related services.
Commercial banks also allow for a variety of deposit accounts, such as checking, savings, and time
deposit. These institutions are run to make a profit and owned by a group of individuals, yet some
may be members of the Federal Reserve System. While commercial banks offer services to
individuals, they are primarily concerned with receiving deposits and lending to businesses.
 Universal Banks
refers to those banks that offer a wide range of financial services, beyond commercial
banking and investment banking, insurance etc. Universal banking is a combination of
commercial banking, investment banking and various other activities including insurance.
 Ordinary Commercial Banks
Thrift Banks
Mobilization of small savings, provide loans generally longer and easier terms.

Rural Banks
Banks entrenched to ensure sufficient institutional credit for agriculture and other rural sectors.
‡mobilize financial resources from rural / semi-urban areas ,grant loans small farmers.

Cooperative Banks
is a business organization owned and operated by a group of individuals for their mutual
benefit. Cooperatives are defined by the International Co-operative Alliance's Statement
on the Co-operative Identity as autonomous associations of persons united voluntarily to
meet their common economic, social, and cultural needs and aspirations through jointly
owned and democratically controlled enterprises. A cooperative may also be defined as a
business owned and controlled equally by the people who use its services or by the people
who work there. Cooperative enterprises are the focus of study in the field of cooperative
economics.

Microfinance banks
is the provision of financial services to low-income clients, including consumers and the self-
employed, who traditionally lack access to banking and related services. More broadly, it is
a movement whose object is "a world in which as many poor and near-poor households as
possible have permanent access to an appropriate range of high quality financial services,
including not just credit but also savings, insurance, and fund transfers.  Those who promote
microfinance generally believe that such access will help poor people out of poverty.