Pamantasan ng Lungsod ng Pasig

College of Business and Accountancy

PHILIPPINE
FINANCIAL MARKETS

FINANCIAL MARKETS
2nd Sem, AY 2022-2023
PHILIPPINE FINANCIAL SYSTEM
Private Banking Institutions

⮚ These companies perform the service of safekeeping funds through the

acceptance of money deposits, and the provision of credit through lending of
money.

Government Banking Institutions

⮚ The role of government in the banking system in the country is to supplement

the credit facilities of private institutions and to establish banks with special
lending programs, to wit:

Philippine National Bank (PNB) aside from granting loans and credit, PNB
is authorized :

1. To purchase, discount or negotiate promissory evidence of indebtedness

, issued or drawn for agricultural, export, industrial, commercial and other
similar purposes with collaterals.

2. To grant loans on, or to discount notes secured by, harvested and stored
crops and for the production of agricultural products.
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PHILIPPINE FINANCIAL SYSTEM
Philippine National Bank (PNB)

3. To grant medium-term and long-term loans and advances against

security of real estate and/or other acceptable asses for the
establishment, rehabilitation or expansion of productive enterprise.

4. To grant loans against personal security, or against security consisting of

personal property of first mortgage on improved real estate and insured
improvement thereon.

5. To make loans to any branch, subdivision, or agency of the government,

including government –owned and/or controlled corporations, which
loans shall be for the productive, revenue, or socio-economic projects as
established in the development programs of the government.

Development Bank of the Philippines (DBP)

⮚ was established in 1946 aimed to attend the requirements of

rehabilitation and development after the World War II. Today, the bank
grants agricultural financing, low cost housing and investment banking.

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PHILIPPINE FINANCIAL SYSTEM
Land Bank of the Philippines
⮚ was established in 1946 aimed to provide lending program to support the
Agrarian Reform Program. It was also given special powers by General
Banking Act to perform the functions of universal bank.

Philippine Amanah Bank

⮚ was established in 1974 to promote and accelerate the socio-economic
development of Mindanao, especially in the predominant Muslim
provinces of Mindanao.
⮚ It provides credit, commercial, development and savings banking facilities
at reasonable terms

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 PHILIPPINE FINANCIAL SYSTEM
PRIVATE NON-BANK FINANCIAL INSTITUTIONS

1. Investment Houses are companies engaged in the underwriting of securities of other

corporations.

2. Investment Companies are financial institutions that raised funds in the capital markets
by selling their own issues of securities to investors.

3. Financing Companies extends credit facilities to consumers and to industrial,

commercial, or agricultural enterprises

4. Securities Dealers/Brokers are intermediaries in the buying and selling of securities .

5. Non-Stock Savings and Loan Association , a non-stock membership, engaged in

granting loans and accepting deposits from its members.

6. Building and Loan Association, also called mutual building and loans association, are
corporations whose capital stock is being paid by the stockholders in regular, equal
periodical payments.

7. Pawnshops are entities engaged in the business of lending money on personal property
delivered as security for loans.
 PHILIPPINE FINANCIAL SYSTEM
PRIVATE NON-BANK FINANCIAL INSTITUTIONS

8. Insurance Companies provide the mechanism for distributing equitably losses among
a large number of persons who are subject to a particular risk.

9. Fund Managers can be a bank or non-bank financial institutions performing quasi-

banking functions engaged in the administration and management of property or money.

10. Lending Investors receive funds from one group of persons, regardless of number,
through traditional deposits, or issuance of debt and equity securities and lend these
funds to another person or entity who can not borrow to banks due to stringent
requirement.

11. Venture Capital Corporation was organized under PD No. 1688 on 1980 to assist
small and medium-scale industries for the purpose of developing, promoting, and
assisting thru debt or equity financing.
PHILIPPINE FINANCIAL SYSTEM
GOVERNMENT NON-BANK FINANCIAL INSTITUTIONS
⮚ Institutions aimed to promote socio-economic development of the people and the
community.

Government Service Insurance System (GSIS) was entrusted with the administration
of a Life Insurance Fund. It then extended life insurance coverage and benefits to
government employees in the country and its members both government and private,
which includes:

o Retirement Insurance Fund

o State Insurance Fund/Employees’ Compensation
o General Insurance Fund/Property Insurance
o Barangay Officials Life Insurance Fund

Social Security System grant to its members, those from the private sector, benefits
such as sickness, disability, death, and old-age pension. Additional benefits have been
incorporated into the scheme, including hospitalization benefits, employees’
compensation benefits, and maternity benefits.
Reference:

Basic Business Finance:

Management Approach
(Second Edition)

by: Ruby F. Alminar-Mutya, DBA