BRIEFLY DISCUSSED THE FOLLOWING QUESTIONS BELOW:

1. History of Philippine Banking.

● “The Obras Pias'' was started by Father Juan Fernandez de Leon in 1754 and
ended in 1820. It was in 1851 that the first Philippine Bank was established, the
“Banco Espanol-Filipino de Isabela II''.Obras Pias A charity foundation by laymen
used for charity works and religious activities. It became a banking institution run
by the friars. Rodriguez Bank, one of the first banks to emerge in the 19th
century. It was more of a loan association than a modern bank.

● Act No. 52 was passed by the First Philippine Commission placing all banks under
the Bureau of Treasury. The Insular Treasurer was authorized to supervise and
examine banks and banking activities.

● IN 1933
Particular group of Filipinos were trying to conceptualize a central bank for the
Philippines.Resulted from a careful understanding of the economic provisions of
HARE HAWES CUTTING BILL.

● IN FEBRUARY OF 1929
The Bureau of Banking under the Department of Finance took over the task of
banking supervision.

● IN 1939
A bill establishing a central bank was drafted by Secretary of Finance Manuel
Roxas and approved by the Philippine Legislature. However, the bill was
 returned by the US government, without action, to the Commonwealth
Government.

● February 1948
President Manuel Roxas submitted to Congress a bill “Establishing the Central
Bank of the Philippines, defining its powers in the administration of the monetary
and banking system, amending pertinent provisions of the Administrative Code
with respect to the currency and the Bureau of Banking, and for other purposes.

● 15 June 1948
The bill was signed into law as Republic Act No. 265 (The Central Bank Act) by
President Elpidio Quirino.

● 3 January 1949
The Central Bank of the Philippines (CBP) was inaugurated and formally opened
with Hon. Miguel Cuaderno, Sr. as the first governor.

● 3 July 1993
The Bangko Sentral ng Pilipinas (BSP) was established to replace the CBP as the
country’s central monetary authority. The BSP actually started out as the Central
bank of the Philippines established on January 3, 1949 as the Philippines’
Central Monetary Authority. • In accordance with the pursuant of the 1987
constitution, the Central Bank of the Philippines was re-chartered in July 3, 1993
and was renamed as the Bangko Sentral ng Pilipinas.

2. What is banking?

Banking is defined as the business activity of accepting and safeguarding money

owned by other people and entities and then lending it out for a profit. However, as
 time has passed, the activities covered by the banking business have broadened, and
banks now provide a variety of other services. Banking services nowadays include the
issuance of debit and credit cards, safe custody of valuable items, lockers, ATM
services, and online fund transfers across the country/world. Additionally, the banking
industry has done wonders for the global economy. Banking activity encourages the
flow of money to productive use and investments by accepting money deposits from
savers and then lending the same money to borrowers. As a result, the economy can
expand. Without the banking industry, our savings would sit idle in our homes,
entrepreneurs would be unable to raise funds, and ordinary people who wanted to
buy a new car or house would be unable to do so.

3. Briefly discussed the following banking institutions and give at least 3 examples of each
banking institutions that are existing in our country:

a. Commercial banks- provide specialty services to their business clients, from

small business owners to large, corporate entities. Along with day-to-day
business banking, these banks also provide their clients with credit services,
cash management, commercial real estate services, employer services, and
trade finance, among other services.
Examples:
❖ Asia United Bank Corporation (AUB)
❖ Union Bank of the Philippines, Inc. (Unionbank)
❖ China Banking Corporation (Chinabank)

b. Thrift banks- also known as a savings and loan association, is a form of a

financial institution that provides basic banking services by offering a variety
of savings options and mortgage loan services and just like commercial banks
these too qualify as a depository institution and may even provide a range of
other products and services.
 Examples:
❖ BPI Family Savings Bank
❖ UCPB Savings Bank.
❖ Philippine Savings Bank

c. Rural Banks- banks that support their local economies with secure
depositories, saving and access to loans for countless farmers, fishermen and
small entrepreneurs in far-flung communities. Today, rural banks are forced to
compete with commercial banks that are looking to grow their client base by
acquiring more rural clients.
Examples:
❖ Aspac Rural Bank, Inc.
❖ Agribusiness Rural Bank, Inc.
❖ United People's Rural Bank, Inc

d. Specialized Government banks- These are completely government-owned

institutions established mainly to provide medium and long-term credits to
the industrial, agricultural and real estate sectors of the economy.

Examples:

❖ Land Bank of the Philippines

❖ Development Bank of the Philippines
❖ AIIBP. Al-Amanah Islamic Investment Bank of the Philippines