Professional Documents
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Banking Institutions History Classifications and Functions
Banking Institutions History Classifications and Functions
• THRIFT BANKS
- these are banks established to encourage thriftiness, industry, frugality, and the accumulation of savings
among the people.
POWERS GRANTED UNDER THE GENERAL BANKING ACT TO THRIFT BANKS
a) Accepts savings and time deposits.
b) Open current or checking accounts.
c) Act as a correspondent for other financial institutions.
d) Act as a collection agent for government entities.
e) Act as a official depository of national agencies and of municipal city, or provincial funds in the
municipality.
f) Rediscount paper with the Land Bank of the Philippines the Development Bank of the Philippines and
other government owned and controlled corporations.
g) Issue mortgage and chattel mortgage certificates, buy and sell them for their accounts.
h) Engage in quasi-banking and money market operations.
i) Open domestic letters of credit.
j) Extend credit facilities to private and government employees.
k) Extend credit against security of jewelry, precious stones and articles of similar nature.
THRIFT BANKS MAY INVEST IN ALLIED UNDERTSKINGS SUBJECT TO THE GUIDELINES ESTABLISHED BY THE MONETARY
BOARD OF THE CENTRAL BANK PROVIDED THAT:
a) The total investment in equities shall not exceed 25% on the net worth of the
bank;
b) The equity investment in any single enterprise shall be limited to 15% on the
networth of the thrift bank;
c) The equity investment of the thrift bank in any single enterprise shall remain a
minority holding in that enterprise; and
d) The equity investment in other banks shall be subject to the same provisions
governing similar investments of commercial banks and shall be deducted from
the investing bank.
INVESTMENT IN ALLIED UNDERTAKING SHALL INCLUDE INSTITUTIONS ENGAGED IN THE FOLLOWING ACTIVITIES;