ACTIVITY 3

Write at least 5 interesting facts to summarize each of the following:

1. Government Non-Bank Financial institutions (5points)

Consists of the Government Service Insurance System (GSIS), Social Security
System (SSS), National Home Mortgage Finance Corporation, Philippine
Veterans Investment Development Corporation, and National Development
Corporation

Grant loans for home building, agricultural, industrial enterprise and cooperative
associations.

Engaged in long-term financing for the expansion and modernization of

productive ventures.

Facilitate short-term placements in other financial institutions

They enhance competition in the financial sector by unbundling financial

services, targeting them, and specializing in the needs of the individual.

2. Private Non-Bank Financial Institutions (5points)

Composed of investments banks, financing companies, securities
dealers/brokers, pawnshops, lending investors, trust companies, private
insurance, venture capital corporations, and fund managers.

Provide certain bank-like financial services

Allocate surplus resources to individuals and companies with financial deficits,

allowing them to supplement banks

Can’t accept demand deposits, no deposit insurance, and can not avail the
payment and settlement system

Not a licensed bank