EXPLAIN BANKING INSTITUTIONS AND ITS TYPE

Commercial Banks
A commercial bank is a universal or regular bank that performs a wide range of
functions.
• Demand Deposits
A current or checking account that accepts deposits and allows for check
withdrawals.
• Admin of Checking Accounts
Checking your time deposits and verifying your savings. As if it were an ATM.
• Extended Kind of Loans
Loans that are available for Individual, business, financial institution, and
government.
• Foreign Exchange
A currency for money, for example $ dollars.
• Rent Out Deposit Boxes
The bank is where important items like as jewelries, titles, and properties are kept.
• Insurance Agents
International trades, such as stocks, are financed and facilitated.
• Correspondent Banks
Extra cash is stored in other banks to start a business, with a maximum limit of
500,000php.
• Universal Banks
Banking can be either domestic or international.
Thrift Banks
A stock savings or lending company.
Grants Loans

 Marketable Bonds/ Marketable Securities

It is a financial instrument and an investment that can be purchased, sold, or
traded on public exchanges and is considered a liquid asset that can be changed
into cash quickly.
 Commercial Papers
A non-secured, short-term debt instrument.
 Bills of Exchange
Draft, note, check, and certificate of deposit are examples of “letters of credit”
(CD).
 Issue Domestic Letters
Draft, note, check, and deposit certificate (CD).
Rural Banks
Regional Banks
 Grant Short-term Loans
Farmers, merchants, and cooperatives use it.
 Accept Savings & Time Deposits
Used to raise funding for local development.
Serve as Channels

 Disbursement
It is the payment of money from a fund made by a lawyer to a guarantor or co-
maker and subsequently swapped to the client.
 Collection
It was in charge of overseeing credit programs.
  Act as Correspondents
Specialized Gov’t. Banks- A public bank.
 DBP Dev’t Bank of the Philippines (1946)
During WWII, it was known as the "Rehabilitation Finance Corporation." It now has
lending activities that support public services like as agriculture, industry, and
affordable housing.
 LBP Landbank of the Philippines (1963)
Agrarian Reform Program, It has loan activities for farmers who want to buy land
or finance land cultivation.
 PAB Philippine Amanah Bank (1974)
It lends to "Muslim regions" without interest under the Islamic banking concept.