THRIFT BANKS AND RURAL

BANKS
FOUR TYPES OF BANKS
• COMMERCIAL BANKS
• THRIFT BANKS
• SPECIALIZED GOVERNMENT BANKS
• RURAL BANKS
 THRIFT BANKS
• MOBILIZATION OF SMALL SAVINGS
• PROVIDE LOANS GENERALLY
LONGER AND EASIER TERMS
 THREE TYPES OF BANKS
• SAVINGS AND MORTAGAGE BANKS
• PRIVATE DEVELOPMENT BANKS; AND
• STOCK SAVINGS BANKS AND LOAN
ASSOCIATION
a. accept savings and time deposits;
b. Grant loans
c. Invest in readily marketable bonds and other debt-
securities, commercial papers and A/R, drafts
d. Issue domestic letters to credit
e. Engage in trust business with Monetary Board
Approval
f. With prior Monetary approval, deal in foreign exchange
g. With prior Monetary Board approval, and in
accordance with specific guidelines with respect to laid
in capital (P50M), accept checking accts., engage in
quasi-banking operations, and;
h. With prior approval, deal in government securities or
collect taxes, subsidiaries and other revenues of the
govt.
 The First Savings Banks
• August 21, 1881 – First savings bank in the Philippines
was founded by Father Felix Huertas.
• Originally called “ Monte de Piedad y Caja de Aborros de
Manila”
• 1906 – Postal Savings Banks was created as Division of
the Bureau of Posts
• 1908 – Government established the Agricultural Bank
• Philippine National Bank- weathered all strife's and
continues to contribute its share in making the financial
system to what it is today
 Establishments of Savings Bank
Registration
Such certificates shall not be issued unless the Monetary
Board is satisfied from the evidence submitted to it
a. That all the requirements of existing laws and
regulations to engage in the business for which the
applicant is proposed to be incorporated have been
complied with;
b. That the public interest and economic condition both
general and local, justify the authorization; and
c. That the amount of the capital, the financing
organization, direction and administration, as well as
the integrity and responsibility of the organizers and
administrators reasonably assure the safety of the
interest which the public may entrust to them
 Voting Stock
• 70% of the voting stock shall be owned
by citizens of the Philippines
Except:
a. The local incorporation of any of the
existing branches or agencies of any
foreign banks in the Philippines pursuant
to Section 68;
b. The consolidation of existing banks in
any of which there are foreign-owned
voting stocks at the time of consolidation
 Capital Accounts Requirement
BSP Circular No. 156, March 19, 1998 otherwise
known as the combined capital accts. Of each
savings and mortgage bank, shall not be less
than P325M by Dec. 31, 1999 as in total assets
minus the following assets:
• Cash on hand;
• Amounts due from the Central Bank;
• Evidences of indebtedness;
• Other non- risk items as the Monetary Board
may
BSP Circular No. 156, March 19, 1998
Increases the minimum capitalization of new
banks by:
• 20% for universal banks
• 40% for regular commercial banks, and
• 60% for rural and thrift banks from
mandated banks’ capitalization
requirement for 1998