SION, KRISTY LYN E.

BSA 2A

Financial Market

TOP 5 COMMERCIAL BANKS IN THE PHILIPPINES

BDO UNIBANK INC

BRIEF HISTORY

BDO Unibank was established on January 2, 1968, as Acme Savings Bank, a thrift bank with

just two branches in the area before Metro Manila was formed. In November 1976, Acme was

acquired by the SM Group, the group of companies owned by retail magnate Henry Sy, and renamed

Banco de Oro Savings and Mortgage Bank.

In December 1994, BDO became a commercial bank and was renamed Banco de Oro

Commercial Bank. In September 1996, BDO became a universal bank, which led to the bank's name

being changed to the current Banco de Oro Universal Bank (BDO Unibank).
 BDO Unibank eventually became involved in insurance services in 1997 (it is a bancassurance

firm) by establishing a subsidiary called BDO Insurance Brokers. In 1999, BDO Unibank expanded its

insurance services through partnerships with Zamora Assurance and Assicurazoni Generali s.p.a.

(Generali), one of the world's largest insurance firms, and Jerneh Asia Berhad, a member of

Malaysia's Kuok Group. Later, BDO Unibank partnered up with its insurance affiliates, which are

Generali Pilipinas Life Assurance Company and Generali Pilipinas Insurance Company, in March

2000.

FOUNDER : Henry Tan Chi Sieng Sy Sr

Born : December 25, 1924

Birthplace : South-eastern Chinese city of Xiamen, in Fujian province.

Nationality: Filipino

SERVICES: BDO is a full-service universal bank in the Philippines. It provides a complete array of

industry-leading products and services including Lending (corporate and consumer), Deposit-taking,

Foreign Exchange, Brokering, Trust and Investments, Credit Cards, Retail Cash Cards, Corporate

Cash Management and Remittances in the Philippines. Through its local subsidiaries, the Bank offers

Investment Banking, Private Banking, Leasing and Finance, Rural Banking, Life Insurance, Insurance

Brokerage and Online and Non-Online Brokerage services.

 LAND BANK OF THE PHILIPPINES

HISTORY

LandBank was established on August 8, 1963, as part of the

Agricultural Land Reform Code as part of a program of land reform

in the Philippines. It was to help with the purchase of agricultural

estates for division and resale to small landholders and the

purchase of land by the agricultural lessee. In 1965, LandBank's by-laws were approved and its first

board of trustees was formed, with the Secretary of Finance as chairman.

On October 21, 1972, Presidential Decree No. 27, signed by President Ferdinand Marcos,

emancipated all tenant farmers working on private agricultural lands devoted to rice and corn, whether

working on a landed estate or not. The system was implemented through a system of sharecropping

or lease-tenancy. LandBank was tasked to collect 15-year land amortizations from beneficiaries at the

cost of the value of the land plus six percent interest per annum.

By 1973, LandBank was in financial distress. It lacked the resources and the capital needed to

implement the land reform programs and lacked the structure to implement the programs efficiently.

On July 21, Marcos signed Presidential Decree No. 251 which revitalized the bank. The decree

granted LandBank a universal banking license (the first bank in the Philippines to be issued such a

license) with a social mission to spur countryside development. The decree expanded LandBank's

powers to include lending for agricultural, industrial, homebuilding and home-financing projects and

other productive enterprises, as well as lending to farmers' cooperatives and associations to facilitate

production, marketing of crops and acquisition of essential commodities. LandBank was also required
by the decree to provide timely and adequate support in all phases involved in the execution of

agrarian reform and also increased its authorized capital to 3 billion pesos. It also became exempted

from all national, provincial, city and municipal taxes and assessments.

LandBank was reorganized in 1977 when it was divided into three sectors to better assess the needs

of its customers. It was divided into Agrarian, Banking and Operations sectors to strengthen

operations and ensure long-term viability.

In 1982, the Agricultural Credit Administration (ACA), established under the same law as LandBank,

was abolished and all its assets and functions transferred to LandBank. ACA's function was to extend

credit to small farmers. Also in this year, Union Bank of the Philippines (UnionBank) was formed, with

LandBank having a 40-percent stake in the government-owned commercial bank.

LandBank became the financial intermediary for the Comprehensive Agrarian Reform Program

(CARP) in 1988. It was also in that year that UnionBank started a gradual privatization. The Aboitiz

Group of Companies acquired LandBank's 40% share of UnionBank then which it continues to own.

LandBank also became the third member of Expressnet, an interbank network in December 1991 but

now a BancNet member.

On February 23, 1995, LandBank's charter was once again amended. Its authorized capital was

increased to nine billion pesos and it became an official government depository. The number of

members of the board of trustees was also increased to nine. On August 25, 1998, LandBank's

authorized capital was once again increased to 25 billion pesos, and it then increased to 200 billion

pesos, after the planned DBP–LandBank merger in 2016.

FOUNDER: Government of the Philippines

Nationality: 100% Filipino Ownership

PRODUCTS AND SERVICES: Overseas Filipino ATM Account, OFW Passbook Account, US Dollar

Passbook Account,LANDBANK Remittance Service (thru Remittance Partners), Direct Credit to

LANDBANK accounts (CA/SA),Credit to other banks'account (through PESONet), Cash pick-up via

any LANDBANK branch,Cash pick-up via Partner Paying Agents (Palawan Pawnshop, LBC, RD

Pawnshop, Puregold, etc.),SMS Notification

METROPOLITAN BANK AND TCO

HISTORY

The Bank was established on 5 September 1962 by a group of Filipino businessmen led by the

current Chairman Dr. George S.K. Ty, principally to provide financial services to the Filipino-Chinese

community. Since its formation, the Bank has diversified its business and now provides a broad range

of banking products and services to all sectors of the Philippine economy through an extensive

domestic branch network and internationally through a network of foreign branches and

representative offices.
The Bank was one of the first banks in the Philippines to gain a universal banking license, which was

granted by the Bangko Sentral ng Pilipinas (“BSP”) in August 1981. This license allows the Bank to

engage in finance-related businesses such as savings and consumer banking, credit card and leasing

products and services as well as “non-allied undertakings”, which currently include motor vehicle

assembly, travel and real estate.

Since its establishment with its first office located in Manila, the Bank’s operations in the Philippines,

and in particular its domestic branch network, have expanded organically and through a series of

acquisitions and mergers. Rapid expansion of the Bank’s domestic branch network occurred following

a change in 1993 to the BSP’s policy of restricting the opening of additional branches of banks in the

Philippines.

The Bank’s international network of foreign branches and representative offices has grown since the

opening in 1975 of its first international branch in Taipei, such growth principally being in response to

the increased volume of remittances by OFWs. As a result of this growth in the Bank’s international

network, the Bank has been able to augment its foreign exchange sources during a period of political

instability in the Philippines in which access to foreign exchange was otherwise limited.

FOUNDER: DR. GEORGE TY

BORN: 18 October 1932

BIRTHPLACE:. Hongkong

NATIONALITY: Filipino
PRODUCTS AND SERVICES: It offers a full range of banking and other financial products and

services, including corporate, commercial and consumer banking, as well as credit card, remittances,

leasing, investment banking and trust banking.

BANK OF THE PHILIPPINE ISLAND

HISTORY

Bank of the Philippine Islands (BPI) is that country's second-largest bank, trailing only

Metropolitan Bank & Trust. It is also the Philippines' oldest bank and one of the oldest of all Asian

banks. BPI offers a full range of commercial and retail financial services, including corporate finance

services, asset management, and brokerage and other financial consulting services. BPI's retail

network includes more than 700 branches throughout the Philippines, as well as branches in New

York, Hong Kong, and Tokyo. The bank also operates a network of more than 1,200 automated teller

machines and more than 8,500 retailer-based point-of-sale machines.

In 1999, BPI pioneered online banking in the Philippines with the launch of online bank BPI Direct in

1999. In addition to its banking products and services, BPI has also developed a strong non-life

insurance operation, chiefly under subsidiary BPI/MS Insurance Corporation. Listed on the Philippines

Stock Exchange, BPI has long been majority controlled by Philippines conglomerate Ayala

Corporation.

FOUNDER: Antonio de Urbiztondo y Eguia

BORN: 7 January 1803

BIRTHPLACE: San Sebastián, Gipuzkoa, Spain

NATIONALITY: Filipino

SERVICES: BPI's services include consumer banking and lending, asset management, payments,

insurance, securities brokerage and distribution, foreign exchange, leasing, and corporate and

investment banking
 PHIL NATIONAL BANK

HISTORY

The Philippine National Bank was established as a government-owned banking institution on

July 22, 1916 with headquarters in the old Masonic Temple along Escolta, Manila. Its primary

mandate was to provide financial services to Philippine industry and agriculture and support the

government’s economic development effort. World War I, then raging in Europe, generated huge

demand for the country’s major exports namely: sugar, copra, coconut oil, Manila hemp and tobacco.

However, not much was being done to develop the industries that produced these sought-after crops

since access to credit facilities was limited then. To solve this problem, Henderson Martin, Vice

Governor of the Philippines, together with Mr. Miguel Cuaderno (who later became Central Bank

governor) drafted the charter for a national bank.

In February 4, 1916, Public Act 2612 was passed by the Philippine legislature providing for the

establishment of the PNB to replace the small P1 million government-owned Agricultural Bank. PNB’s

first head office was the Masonic Temple along Escolta, the then “Wall Street of the Philippines” in the

bustling district of Sta. Cruz in Manila. An American, H. Parker Willis, was its first president.
FOUNDER: Miguel Cuaderno

BORN: December 12, 1890

BIRTHPLACE: Manila, Captaincy General of the Philippines

NATIONALITY: Filipino

SERVICES: deposit-taking, lending, trade financing, foreign exchange dealings, bills discounting,

fund transfers, remittance servicing, asset management, treasury operations, comprehensive trust

services, retail banking and other related financial services