STRUCTURE OF THE PHILIPPINE

FINANCIAL SYSTEM
A. Bangko Sentral ng Pilipinas
The central bank of the
Republic of the Philippines
It maintains the country’s
international reserves,
performs credit
operations, engages in
open market operations
acts as a banker of the
government, and has the
sole power and authority
to issue currency
 B. Banking Institutions
• 1. Private Banking Institutions
• A. Expanded Commercial Banks/Universal Banks
• * Universal Bank or Expanded Commercial Bank
• * Commercial Bank or Domestic Bank
• B. Commercial Banks
• C. Thrift Banks
*Savings and Mortgage Banks
* Private Development Banks
* Stock Savings and Loan Association
• D. Rural Banks
• E. Cooperative Banks
 B. Banking Institutions
• 2. Government Banking
Institutions
• A. Development Bank of the
Philippines
• B. Land Bank of the Philippines
• C. Philippine Al-Amanah Islamic
Investment Bank
 C. Non-Bank Financial
Institution
• 1. Private non-bank • 2. Government
financial institution Non-bank financial
 Investment houses institutions
 Investment  Government Service
companies Insurance System
 Finaning companies (GSIS)
 Securities  Social Security
dealers/brokers System (SSS)
 Non-stock savings  Pag-ibig
and loans institutions
 Pawnshops
 Commercial Bank
• -any corporation that accepts or creates
demand deposits to withdrawal by means
of checks

• 1. Universal Bank or Expanded

Commercial Bank

• 2. Commercial Bank or Domestic Bank

 Thrift Banks
• The functions of thrift banks is to
accumulate the savings of depositors
and investing them together with capital
loans secured by bonds, mortgages in real
estate

• 1. Stock Savings and Mortgage Bank

(SSMB)
• any corporations organized for the
purpose of accumulating the savings of
depositors and investing them, together
 Thrift Banks
• 2. Savings and Loan Association (SLA)
• - any corporation engaged in the business
of accumulating the savings of its
members or stockholders and using
such accumulation for loans and
investment securities

• 3. Private Development Bank

• - bank that exercise all the powers and
shall assume all the obligations of the
savings and mortgages bank as provided
 Rural Bank
• -any bank authorized by the Central Bank
to make credit available to farmers,
businessmen and cottage industries in the
rural areas.
 Cooperative Bank
• -banks established to assist the various
cooperatives by lending those funds at
reasonable interest rates
 Land Bank of the Philippines
• - a government bank which
provides financial support in the
implementation of the Agrarian
Reform Program of the
government
 Al-Amanah Islamic
Development Bank
• According to R.A. No. 6048 authorizes
the bank authorizes the bank to
promote and accelerate the socio-
economic development of
Autonomous Region of Muslim
Mindanao
 Development Bank of the
Philippines
• -provides loans for developmental
purposes, gives loans to the
agricultural sector, commercial sector
and the industrial sector
Non- banking financial
institutions
Investment House
• Any enterprise which engages in
underwriting securities of other
corporations
Financing Company
• Any business enterprise where the
primary purpose is to extend credit
facilities to consumers and to
industrial. Commercial or agricultural
entities either by discounting or
factoring commercial paper accounts
Securities Dealer
• Any person engaged in the
business of buying and selling
securities for his own account
thereby making a profit from the
difference between his buying
and selling securities
Securities Broker
• Any person engaged in the business
of effecting securities transactions
and earns through commission basis
Non-Stock Savings and Loan
Association and Cooperative Credit
• Corporations engaged in the business
of accumulating the saving of the
savings of its members and uses
such accumulated funds to lend to its
own member-depositors
Building and Loan Association
• Any corporation whose Capital Stock
is periodically paid by its stock
members
Pawnshop
• a person or entity engaged in the business in the
business of lending money or personal property,
jewellery, television as a security for a loan
Government Non-bank Financial
Institutions
Social Security System
• Provides retire benefits, funeral
benefits, housing loans and calamity
loans to employees who are working
in private companies and officers
Government Service Insurance
System (GSIS)
• Provides retirement benefits, housing
loans, personal loans, emergency
loans to government employees
PAG-IBIG Fund
• Provides housing loans to both
government and private employees