Activity # 11

BRIEFLY DISCUSSED THE FOLLOWING QUESTIONS BELOW:

1. History of Philippine Banking.
History of the Philippine Banking
● Obra Pias (Pious works)– banking in the Philippines began in the
16thCentury by establishment of this organization composing of layman
associated with religious order.
● Rodriquez Bank was among the first bank that emerged in the early
19thcentury which was more of a loan association than a regular bank.
● Banco Espanol-Filipino de Isabel II was the first state bank in the
Philippines that was established on August 1, 1851 by the Board of
Authorities (Junta de Autoridades) in Manila because of the need for more
extensive bank services and facilities. In January 1, 1912 the named was
changed to Bank of the Philippine Islands.
● In 1906 Postal Savings Bank was put up and it was the first agricultural
bank. Later on its assets and liabilities was transferred in 1916 to the
Philippine National Bank.
● Three years after the American Regime ended, the Central Bank of the
Philippines was created, establishing a managed monetary system in the
Philippines. It was given the sole authority to issue the republic’s new
paper money and regulate and supervise the country’s banking system. In
1873, British-Oriented banks opened branches in the country as a result of
the expanded Philippine European trade following the opening of the Suez
Canal in 1869.
● In 1872, the chartered bank of India, Australia and China opened
branches in Manila and la8terin Iloilo and Cebu.
● In 1875 the Hong Kong and Shanghai Banking Corporation establish a
branch in Manila

2. What is banking.
Banking- is the service performed by the financial institution known as a bank,
which is primarily concerned with the safekeeping of funds through the
 acceptance of deposits of money, and the provision of credit through lending of
money.
Bank covered a wide range of services:
● Receiving, collecting, transferring, paying, lending, investing, dealing,
exchanging, and handling money (safe deposit, custodianship, agency,
trusteeship) and money claims both domestically and internationally.
● Other financial institutions also perform fund mobilization and credit
functions. These reinvestment houses, financing companies, non-stock
savings and loan associations, building and loan associations, pawnshops
and mutual funds

3. Briefly discussed the following banking institutions and give at least 3 examples
of each banking institutions that are existing in our country:

a. Commercial banks
Commercial banks are financial institutions that accept deposits, offer
checking account services, and make various loans. They also have
products like savings accounts for individuals and small businesses as
well as certificates of deposit (CDs).
Examples:
1. Metrobank
2. LANDBANK
3. BPI

b. Thrift banks
Thrifts bank can also be called as a saving and mortgage loan
associations. These are often termed as a type of savings bank that
offers specialized services in the real estate sector. It offers savings
accounts facilities and home mortgage loan facilities to local people.
Examples:
1. RCBC Savings Bank
2. China Bank Savings
3. Philippine Business Bank
 c. Rural Banks
Rural banks are private, unit banking institutions based in the rural
areas which mobilize financial resources and control and extend
credits to farmers, cottage industrialists and other rural-based
economic operators in their defined area of operation.
Examples:
1. One Network Bank, Inc. (a subsidiary of Banco de Oro)
2. EastWest Rural Bank, Inc. (a subsidiary of EastWest Bank)
3. CARD Bank, Inc. (a MF RB)

d. Specialized Government banks

These are completely government-owned institutions
established mainly to provide medium and long-term credits to the
industrial, agricultural and real estate sectors of the economy.
Examples:
1. Development Bank of the Philippines
2. Land Bank of the Philippines
3. Philippine Amanah Bank.

Thank you & keep safe!