Republic of the Philippines

Bukidnon State University
School of Graduate Studies

Malaybalay City


The financial system of the Philippines comprised of not just banks but

also all financial institutions herein the country. The Philippine financial system

consists mainly of rural banks, which make up the majority of total banking

institutions. Rural banks provide credit to farmers and agricultural-related

businesses. These banks, along with cooperative banks that provide similar

services, have the lowest asset values and market shares relative to universal

and commercial banks. However, rural and cooperative banks have higher yearly

growth rates than universal and commercial banks combined. The Philippine

financial system is structured by type of bank including universal, commercial,

savings and cooperative banks, according to statistics compiled by from noted bank adviser Paul Sheehan. Although the country’s

banking system primarily consists of rural and thrift banks, universal and

commercial banks account for larger market shares.

As to the Bangko Sentral ng Pilipinas is a financial institution vested by the

State with the function of regulating the supply, cost and use of money with a

view to promoting national and international economic stability and welfare.

Under BSP is the MONETARY BOARD it is the policy making body of the BSP

it exercise the powers and functions of the BSP. It issues rules and regulations it

considers necessary for the effective discharge of the responsibilities and

exercise the powers vested upon it. They also direct the management,

operations and administration of the BSP, establish a human resource

.management system. Insights: Through our growing economy we experience some difficulties in attaining our economic development we are aiming for due to some constraint made from our current government status. Financial system a network that generates. and controls money and credit. As to the current issues we are facing now we have too many instance that we are on the verge of adding up to our credit issues from the reasons of development plans delayed by corruption. On the side of economic development such derivations of economic will can help our nation attain such progress. Such circumstances affect our nation building plan also it affect every stakeholders that the nation should cater. adopt an annual budget for and authorize such expenditures by Bangko Sentral and indemnify its members and other officials of Bangko Sentral. It is an unfortunate circumstances for we have an efficient financial system derived from the world economy nowadays but because we all have our own personal interest that we doesn’t foresee the real need of the nation. The domestic financial system has demonstrated resilience to external and domestic shocks since the 1997 financial crisis. some remaining issues need to be addressed to ensure that the Financial system will remain stable and can fully exploit growth opportunities. We garner service from them in having some investment from other sources that helps our economy. circulates. However. As to the other financial institutions it is also part of our system being that we have been up to having some dependence on private and non-financial institutions.