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Classification of Banks
Classification of Banks
30/01/24
LGM2A LGM208 - Banking Laws
1. The different classifications of banks in the Philippines are as follows: a.) Universal Bank that
is defined as a commercial bank with the additional authority to exercise the powers of an
investment house; b.) Commercial Banks which are the ones that offer services such as loans,
lines of credit, and other financial products specifically designed for businesses. These services
are critical to supporting the growth and development of businesses and the broader economy;
c.) Thrift Banks is the type of financial institution that specializes in offering savings accounts
and originating home mortgages for consumers; d.) Rural Banks which are traditional banks that
serve farmers, fishermen, workers or communities away from the highly-dense metropolitan
cities in a country; e. ) Cooperative Banks the kind of bank that is organized, owned and
controlled by cooperative organizations, for the purpose of providing financial and credit
services to cooperatives and their members. Its members are either regular or associate; f.)
Islamic Banks that is defined as a banking system which is in consonance with the spirit, ethos
and value system of Islam and governed by the principles laid down by Islamic Shariah. Interest
free banking is a narrow concept denoting a number of banking instruments or operations which
avoid interest; and g.) Digital Banks which refers to o a bank which offers financial products and
services that are processed end-to-end through a digital platform and/or electronic channels
with no physical branch/sub-branch or branch-lite unit offering the same.
2.
Universal Banks 1. Bank of the Philippine Islands (BPI)
2. Security Bank
3. Metrobank