1.

Banking system
-Banking system is a group or network of institutions that provide financial services for us. These
institutions are responsible for operating a payment system, providing loans, taking deposits, and helping
with investments. Banking system is a group or network of institutions that provide financial services for
us. These institutions are responsible for operating a payment system, providing loans, taking deposits,
and helping with investments.
-Although banks do many things, their primary role is to take in funds—called deposits—from those with
money, pool them, and lend them to those who need funds. Banks are intermediaries between depositors
(who lend money to the bank) and borrowers (to whom the bank lends money).
2.The primary objectives, roles, privileges, and provisions of Bangko Sentral ng
Pilipinas?
- The primary objectives of the Bangko Sentral ng Pilipinas (BSP) are to maintain price
stability and promote economic growth. As the central bank of the Philippines, it is responsible
for regulating the country's monetary policy and ensuring a stable financial system. The BSP
also acts as a lender of last resort to banks and other financial institutions. In fulfilling its roles,
the BSP has been granted certain privileges, such as issuing currency and minting coins. To
achieve this, it has the role of formulating and implementing monetary policy, regulating banks
and other financial institutions, managing the country's foreign reserves, and issuing currency.
As the central bank of the Philippines, BSP holds a privileged position as it is responsible for
promoting financial stability in the country. It also provides various services such as cash
management, currency exchange operations, and financial education programs.
3. Significance of banks and other Financial institutions
-Banks also play a central role in the transmission of monetary policy, one of the government's most
important tools for achieving economic growth without inflation. The central bank controls the money
supply at the national level, while banks facilitate the flow of money in the markets within which they
operate.
4. Categories of Banks.
-Banks in the Philippines are classified into universal banks, commercial banks, thrift banks, rural banks,
cooperative banks, Islamic banks government-owned banks and other banks as may be classified by the
Bangko Sentral ng Pilipinas (BSP). commercial bank can do, universal banks are also allowed to perform
underwriting and other functions of investment houses. They can also invest in non-allied undertakings,
as well as own up to 100% of the equity in a thrift bank, a rural bank, a financial allied enterprise, or a
non-financial allied enterprise.
5. Types of banking
- Central Bank A central bank is a government agency in charge of carrying out monetary policy, managing
a nation's or a group of nations' currencies, and managing the money supply. - Cooperative Banks A
cooperative bank is one that was established, acquired, and managed by cooperative groups with the aim
of offering cooperatives and their members financial and credit services. - Commercial Banks A financial
organization is referred to be a "commercial bank" if it accepts deposits, provides companies with basic
financial products including certificates of deposit (CDs) and savings accounts. - Regional Rural Banks
(RRB) Indian Scheduled Commercial Banks (Government Banks) functioning at the regional level in several
Indian states are known as Regional Rural Banks (RRB). They were established with the intention of
providing basic banking and financial services, primarily to India's rural areas. - Local Area Banks (LAB)
Local area banks are described to as little private institutions with affordable organizational models that
offer financial services with geographic restrictions. These banks typically operate in three major
contiguous regions, as well as rural and semi-urban areas. - Specialized Banks According to the resolutions
of their founding, the specialized banks are those institutions that operate as banking operations and
support a particular sector of the economy, such as industrial, agricultural, or real estate activity. Demand
deposits for the core activities of a specialized bank are not required. - Small Finance Banks Since they are
involved in providing loan facilities to small business units, micro and small enterprises, small and
marginal farmers, and other unorganized sectors through their superior technology & low-cost
operations, small finance banks essentially double as savings vehicles. - Payments Banks A payments bank
functions similarly to other banks but on a smaller scale and without taking on any credit risk. In plain
English, it can perform the majority of banking tasks but not advance loans or issue credit cards.