Llasus, Ron Arjay S.

CA 101

1.)Commercial Bank - Commercial banks are authorized to provide a variety of financial services which
includes loans, savings accounts, etc.

The primary functions of a commercial bank are accepting deposits and also lending funds. Deposits are
savings, current, or time deposits. Also, a commercial bank lends funds to its customers in the form of
loans and advances, cash credit, overdraft and discounting of bills, etc.
The secondary functions of a commercial bank are acting as an agent to its customers and also providing
general utility services.
Examples: BDO Unibank, Inc., Metropolitan Bank and Trust Company (Metrobank), Bank of the
Philippine Islands (BPI), Land Bank of the Philippines, Philippine National Bank (PNB), Security Bank
Corporation (Security Bank), China Banking Corporation (Chinabank)

2.)Thrift Bank - A thrift bank, or thrift, is a term for a financial service organization that specializes
in offering savings accounts and originating mortgage loans to consumers. Some are mutually owned--
that is, owned by their depositors--while others are owned by stockholders.
Thrifts are generally smaller, local institutions and don't have the reach or resources of a large
national bank.
Examples: Allied Savings Bank, Allied Savings Bank, Allied Savings Bank, Bank of Calape, Bank One
Savings and Trust Corporation, Bataan Development Bank, Bataan Savings and Loan Association, Inc.,
BPI Direct Savings Bank,

3.)Rural Bank – can be defined as rural financial institution/ cooperative/ community bank or deposit

taking MFI that provides customised financial services to rural communities.

Functions;
1. Grant loans and make investments in accordance with existing rules and regulations.
2. Accept savings and time deposits.
3. Sell domestic drafts.
4. Act as correspondent for other financial institutions.
5. Receive in custody funds, documents, and other valuable objects, and rent safety deposit boxes
for the safeguarding of such objects.
6. Act as financial agent, buy and sell, by order of and for the account of its customers, shares,
evidences of indebtedness and all types of securities.
7. Make collections and payments for the account of others and perform such other services for its
customers as are not incompatible with banking business.
Examples: One Network Bank, Inc. (a subsidiary of Banco de Oro), EastWest Rural Bank, Inc. (a
subsidiary of EastWest Bank), CARD Bank, Inc. (a MF RB), Guagua Rural Bank, Inc., First Isabela
Cooperative Bank (FICO Bank), GM Bank of Luzon, Inc. (a rural bank), Quezon Capital Rural Bank, Inc.

4.)Private non-bank financial ins, - Non-bank financial institutions include pawnshops, credit unions,
mutual credit societies, insurance companies, pension funds, finance companies and other types of
activity, depending on the country. Pawnshops are lending institutions, referring to loans secured by
personal property. Pawn shops specialize in providing consumer credit secured by a pledge of movable
property, based on operations of customer's values storage and sale of mortgaged property on a
commission basis.

Examples: Wells Fargo Bank National Association, Shell Employees Savings & Loan Association, Inc.,
SM Savings and Loan Association, Inc., Shell Refinery Employees Savings & Loan Association, Inc.
5.) Government non-bank financial ins. - is a financial institution that does not have a full banking
license and cannot accept deposits from the public. However, NBFIs do facilitate alternative financial
services, such as investment (both collective and individual), risk pooling, financial consulting, brokering,
money transmission, and check cashing.

Examples: Korea Development Bank Representative Office, Bank of Taiwan Representative Office,
Supreme Court Savings & Loan Association, Inc. (SCSLAI), Philippine Coast Guard Savings & Loan
Association, Inc. (PCGSLAI), NBI Savings & Loan Association, Inc.

SOURCE (s);
https://www.toppr.com/guides/business-economics-cs/money-and-banking/functions-of-commercial-
banks/
https://philnews.ph/2019/03/28/philippine-commercial-banks-list-commercial-banks-ph/
https://www.livinginthephilippines.com/live-and-retire/banking/776-list-of-savings-banks-or-thrift-banks
https://philnews.ph/2019/03/30/philippine-rural-banks-list-rural-banks-philippines/
https://www.worldbank.org/en/publication/gfdr/gfdr-2016/background/nonbank-financial-institutional
Llasus,Ron Arjay S.
CA 101

Different types of checks

1. Personal Check - issued by individuals with checking or current account in a bank.

2. Business Check – issued by businesses with checking or current account in a bank.

3. Cashier’s or Manager’s Check – purchased from bank. This is issued by bank against its own
account, ensuring availability of funds.
4. Certified Check – is like a cashier’s check, however, it is issued by the bank certifying that the
account of the person issuing it has available funds (just like ordinary personal check).

5. Traveller’s Check – It is a fixed amount check which is preprinted, allowing the signatory of the
financial institution who is selling the traveller’s check to make an unconditional payment to
whoever has the traveler’s check in his posession.