WHAT IS UNIVERSAL BANKS?

 Is a system in which banks provide a wide variety of comprehensive financial services, including
those tailored to retail, commercial, and investment services. Universal banking is common in
some European countries, including Switzerland.
 Is a term for banks that offer a variety of comprehensive financial services, including both
commercial banking and investment banking services.
 Is a combination of commercial banking, investment banking, development banking, insurance
and many other financial activities. It is a place where all financial products are available under
one roof.

Commercial banks typically offer consumer and business services, such as checking and savings accounts,
business and personal loans (including mortgages and auto loans), and certificates of deposits (CDs).

Investment banks provide merger and acquisition services for corporations, underwriting services, and
brokerage services for institutional and private clients.

Universal banking offers other functions:

 merchant banking  housing finance

 mutual funds  auto loans
 factoring  retail loans
 credit cards  insurance

PURPOSE OF UNIVERSAL BANKS

Universal banks serve multiple purposes that contribute to the overall stability and efficiency of the
financial system.

 Providing comprehensive financial services: Universal banks aim to offer a full range of banking
services to cater to the diverse needs of individuals, businesses, and corporations. These services
typically encompass commercial banking, investment banking, asset management, and other
related financial services.
 Promoting financial intermediation: Universal banks act as intermediaries between surplus units
(individuals and corporations with excess funds) and deficit units (individuals and corporations in
need of funds). By facilitating lending and borrowing activities, universal banks contribute to the
efficient allocation of capital in the economy.
 Facilitating capital formation: Universal banks play a crucial role in facilitating capital formation
by providing avenues for individuals and businesses to raise funds. They assist in capital market
activities, such as underwriting securities, issuing bonds, and facilitating initial public offerings
(IPOs).

OBJECTIVES OF UNIVERSAL BANKS

 Maximizing profitability: Universal banks aim to generate profits by leveraging synergies

between their various business lines. By cross-selling products and services to their existing client
base and optimizing their capital allocation, universal banks seek to enhance their financial
performance.
  Managing risks prudently: Given their wide range of activities, universal banks face diverse risks.
Effective risk management is a key objective to ensure financial stability and safeguard the
interests of depositors and shareholders. This includes implementing robust risk assessment
frameworks, diversifying risk exposures, and complying with regulatory requirements.
 Providing holistic financial solutions: Universal banks strive to meet the comprehensive financial
needs of their clients by offering integrated solutions. This involves combining commercial
banking services, such as lending and deposit-taking, with investment banking services, including
underwriting, advisory services, and capital market activities.

The main objectives of such a model are:

 An increased participation in investment strategies

 Securing clients through saving and loan schemes development of private sectors and
 Cutting costs for financial services.

WHAT IS THE ADVANTAGE OF UNIVERSAL BANKING?

 It allows a customer to manage all of their finances under one roof. For example, a person can
have a checking account, a loan, a mortgage, asset management services, and other investment
services all at one institution. Sometimes they receive benefits or discounts for doing so. For
banks, it allows them to make more money by providing a variety of different services and
charging for them—multiple revenue streams.

WHAT IS THE DISADVANTAGE OF A UNIVERSAL BANK?

 Include risk concentration for the client and a conflict of interest in certain areas between bank
and investor, primarily in regards to interest earned on deposits.

NEED FOR UNIVERSAL BANKING

 The global retail financial services market is growing very fast and chains of foreign banks are
attacking traditional banks by offering new products of loans and investment portfolios under one
roof.
 Liberalization and de-regulation of financial market have led to destruction of traditional branch
services.
 Customers are also expecting and demanding various products and services.

ADVANTAGES OF UNIVERSAL BANKING

 Economies of scale  Investors trust

 Profitable diversification  Easy marketing
 Resource utilization  Under one roof

LIMITATIONS OF UNIVERSAL BANKING  Monopoly

 No expertise in long term tending
 Different rules and regulations
 Conflict of interest
 Risk of failure
CLASSIFICATIONS OF UNIVERSAL BANKS

 Global Universal Banks: These are large multinational banks that operate across multiple
countries and provide a wide range of financial services globally. They have extensive branch
networks, subsidiaries, and representative offices in various jurisdictions.
 National Universal Banks: These banks operate within the boundaries of a single country and offer
comprehensive banking services to domestic customers. They may have a significant market
presence and hold a prominent position in the domestic financial sector.
 Government-Owned Universal Banks: These banks are owned or controlled by the government.
They often play a vital role in fostering financial stability, supporting national development goals,
and providing financial services to underserved sectors.
 Privately-Owned Universal Banks: These banks are privately owned and operated by
shareholders. They compete in the financial market based on their expertise, customer service,
and financial performance.

EXAMPLES OF UNIVERSAL BANKS

 Al-Amanah Islamic Investment Bank of the Philippines

 ANZ Banking Group Ltd. Asia United Bank Corp. (AUB)
 Bank of the Philippine Islands (BPI)
 BDO Unibank, Inc. (BDO)
 China Banking Corp. (Chinabank)
 Deutsche Bank AG Development Bank of the Philippines (DBP)
 East West Banking Corp. (Eastwest)
 The Hongkong & Shanghai Banking Corp. (HSBC)
 ING Bank NV
 Land Bank of the Philippines (LBP)
 Metropolitan Bank & Trust Co. (Metrobank)
 Mizuho Bank, Ltd. – Manila Branch
 Philippine National Bank (PNB)
 Philippine Trust Co. (Philtrust)
 Rizal Commercial Banking Corp. (RCBC)
 Security Bank Corp. (SBC)
 Standard Chartered Bank (Standard)
 Union Bank of the Philippines (Unionbank)
 United Coconut Planters Bank (UCPB
WHAT IS COMMERCIAL BANK?

 Are financial institutions that provide various banking services to individuals, businesses, and
organizations. They are regulated entities that operate for profit.

FUNCTIONS OF COMMERCIAL BANKS

Primary

Accepting deposits

 Is the most important function of commercial banks. Banks act as the financial intermediaries
which collect the surplus money from the individuals and firms.
Demand Deposits: Demand deposits are those deposits were deposited money can be withdrawn
anytime by simple procedure.
Time Deposits: Time deposits are deposits for a certain period of time. In time deposits, the rate
of interest in time deposits is higher than demand deposits. This is also referred to as Fixed Deposit

Lending funds

 Lending is another important function of commercial banks. This function is the major source of
revenue for the banks. The deposit from the individuals and firms are disbursed in the form of
lending to the group who shortage fund

Credit creation

 Banks have a credit creation function where banks earn interest by allowing customers to
withdraw the money from their account by paying for them with their own cheques. Here, lump
sum funds are not given rather customers withdraw the money when needed.

Secondary

Agent function

 Bank acts as an agent on the behalf of individuals or business firms in many cases. Bank represents
its customers or stands as a guarantor in various operations. For acting as an agent, banks change
service charge or commission from their clients.

Some of the agent functions are:

 Collection of Cheques, Dividend and Interests

 Conduct of Stock Exchange Transactions
 Payment of Subscription, Rent, Insurance Premium, Salary Disbursement

Foreign exchange and international trade intermediaries

 It is mandatory for firms and organizations to conduct any international transaction through
banks. They are the exchange counter for selling and purchasing foreign currencies. International
trade also highly depends on banks for operation from business financing to payment. Banks act
as the guarantor for businesses in international trade. Letter of Credit for international trade is
conducted via banks
General utility function

 LOCKER FACILITY
 Banks provide locker facilities to their customers where customers can keep their jewelry and
other important documents. For providing this service, banks charge fees based on the period of
use.
 LETTER OF CREDIT
 Letter of Credit is an important component in business and it is also important in international
operation. It is a document issued by a bank which guarantees payment of the transactions.
 TRAVELER'S CHEQUE
 The traveler’s cheque is a medium of exchange that is used in place of hard currency which is
issued by a bank. The bearer of the traveler’s cheque can exchange the cheque for the liquid
currency.
 LETTER OF REFERENCE
 Banks provide information about the financial position of the customers and clients when needed

A. Electronic banking function

Along with all other functions, the e-banking function is contemporary. Banks are providing the
services like debit and credit card facilities, mobile and internet banking which has become an
integral function of commercial banks.

PURPOSE OF COMMERCIAL BANKS

Deposits

 Commercial banks allow individuals and organizations to deposit their money into a safe place,
helping them build their savings.

Lending

 Commercial banks use a portion of the funds they receive via deposits to make loans to
individuals, organizations and government institutions.

Access for Depositors

 Deposits are payable on demand, so that the depositors have access to the money if they want it
to make purchases and pay their bills.

Other Financial Activities

 Beyond the basics of taking deposits and making loans, commercial banks typically engage in a
myriad of other financial activities.

OBJECTIVES OF COMMERCIAL BANKS

 to offer a wide variety of services to individual and business customers

 to collect payments including fees, charges, and interest on the products and services provided
to customers for the purpose of generating profits for shareholders
SERVICES OFFER

Deposit Accounts

 You can go to a commercial bank to keep your money safe. You can open savings, current
accounts, checking, or time deposit accounts, depending on your needs.

Credit Cards

 You can also get a credit card from a commercial bank, whether you are a first time cardholder
or not. Through this card, you can spend money via credit for goods & services.

Loan Services

 You can apply for various loans, including car loans, mortgages, personal loans, and business
loans, offered by a commercial bank.

Treasury Management

 Commercial banks offer this service to help clients make better use of their funds. Treasury
management is the term for all the activities and processes involved in managing a company's or
organization's money.

Insurance

 You can also get different insurance policies in commercial banks. Insurance can protect you from
financial losses caused by unexpected events and emergencies.

Wealth Management

 Commercial banks in the Philippines also offer wealth management to their clients. It’s an
investment advisory service that combines financial services to address your particular needs.

ASSETS

 To qualify as a commercial bank in the Philippines, financial institutions must meet certain criteria
set by the Bangko Sentral ng Pilipinas (BSP), the country's central bank. The minimum capital
requirement for establishing a commercial bank in the Philippines is PHP 2.40 - 2.80 billion.
($50,097,066 USD)

LOANS

 Commercial banks may loan you a minimum amount of PHP 5,000 and a maximum of PHP100,000.
EXAMPLE OF COMMERCIAL BANKS:

 Land Bank of the Philippines

 Banco de oro Bank of Commerce
 China Banking Corporation(China Bank)
 Bank of the Philippine Islands (BPI)
 CIMB Bank Philippines Development Bank of the Philippines (DBP)
 Deutsche Bank
 The Hongkong and Shanghai Banking Corporation (HSBC)
 Al Amanah Islamic Investment Bank of the Philippines
 Maybank
 The Metropolitan Bank and Trust Company,(Metrobank)
 The Philippine Bank of Communications (PBCom)
 Phil trust Bank
 Philippine National Bank (PNB)
 Rizal Commercial Banking Corporation (RCBC)
 Security Bank Corporation
 Standard Chartered Ban
 J.P. Morgan Chase
COOPERATIVE BANK

 One which is organized, owned and controlled by cooperative organizations, for the purpose of
providing financial and credit services to cooperatives and their members. Its members are either
regular or associate. Only cooperative organizations that hold common shares may be regular
members. Non-cooperative organizations or associations, individual members of the bank's
member-primary cooperatives, local government units, government agencies and government-
owned and controlled financial institutions holding preferred shares may be associate members.

Main Role of Cooperative Banks

A Coop Bank shall primarily provide financial, banking and credit services to cooperatives and their
members, although it may provide the same services to non-members or the general public.

 The powers granted to Coop Banks under existing laws, any Coop Bank may perform any or all of
the banking services offered by rural banks under Items “(4.a) extend loans and advances
primarily for the purpose of meeting the normal credit needs of farmers, fishermen or farm
families” to “(4.h) buy and sell foreign exchange” .
 A Coop Bank may likewise perform any or all of the banking services offered by rural banks under
Items “4.(i) - accept current or checking accounts: Provided, That such RB has net assets of at least
P5.0 million” to “4.(n) - invest in allied undertakings” as well as any or all of the banking services
offered by other types of banks, subject to prior approval of the Bangko Sentral.

SENATE No 1119

 Introduced by Senator Aquilino Q. Pimentel, Jr.

 AN ACT EXPANDING COUNTRYSIDE CREDIT THROUGH COOPERATIVE BANKS AND ENCOURAGING
THE GROWTH AND DEVELOPMENT OF COOPERATIVE BANKS BY AMENDING CHAPTER XI11 OF
REPUBLIC ACT NO. 6938, OTHERWISE KNOWN AS THE COOPERATIVE CODE OF THE PHILIPPINES,
AND FOR OTHER PURPOSES.

PRIVILEGES GIVEN TO COOPERATIVE BANKS

 The reserve requirement imposed on any cooperative bank by the Monetary Board shall enjoy
equitable preferential terms over those imposed on any other type or class of bank.
 Cooperative banks shall have unrestricted branching rights free from any stipulation, assessment,
or surcharges required in setting u p a branch.
 A cooperative bank may publish its statement of condition in a newspaper of general circulation
or a local newspaper covering its area of operations.
 The foreclosure of mortgages covering loans granted by a cooperative bank and executions of
judgments thereon involving real properties and levied upon by a Sheriff shall be exempt from
publication requirements where the total amount of the loan does not exceed P500,OOO.OO.
 Cooperative banks will be exempted from the payment of taxes, licenses, fees or charges for a
period of ten years.
 Government agencies and government-owned and controlled financial institutions shall give
financial and technical assistance to cooperative banks.
  The Land Bank, Development Bank of the Philippines and the government-owned and controlled
financial institutions may provide funds to cooperative banks, whenever necessary at minimal
interest rates

OBJECTIVES

 Providing financial services to members

 Promoting economic development
 Supporting community growth
 Ensuring member participation and control

PURPOSE

 The purpose of a cooperative is to realize the economic, cultural and social needs of the
organization’s members and its surrounding community. Cooperatives often have a strong
commitment to their community and a focus on strengthening the community they exist in or
serve. When a co-operative does well financially or economically, the community served by the
co-op benefits, not just a small group of shareholders.

ASSETS

Under Cooperative Development Authority Memorandum Circular 2007, cooperatives can be classified
according to their asset size:

 Micro Cooperative - ₱3M and below, exclusive of the land on which the particular cooperative
office , plant, and equipment, if any, is situated
 Small Cooperative - ₱15M and below Medium Cooperative- ₱100M and below
 Larger Cooperative - ₱100M and above

MAXIMUM LOAN

 Cooperatives may loan you a minimum amount of PHP 1,000 - PHP 2,000 and a maximum of PHP
2,000,000 - PHP 5,000,000. Check the cooperative you are interested in and view their many loan
offers

TYPES OF COOPERATIVES

Credit Cooperative

 An association of small borrowers and savers who cannot afford access to traditional banking
services. This helps members save and/or borrow money at a much lower cost than what banks
charge.

Consumer Cooperative

 Owned and controlled by consumers who buy goods and services they need through their coop.
Consumers coops procure and distribute products at better prices, quality, and delivery service to
members and non-members.
Producer Cooperative

 Operated by people who produce the same types of goods such as crafts and agricultural products
for sale. They provide processing, marketing, and distribution services to members who are
usually farmers, fishermen, or artists.

Marketing Cooperative

 Providing services such as packing, promoting, and selling products for them. Doing so eliminates
the need for middlemen between producers and consumers, which helps maximize the profits
that members receive from their produce.

Agrarian Reform Cooperative

 Help marginal farmers and agrarian reform beneficiaries develop a system for land tenure,
development, consolidation, or management in locations covered by agrarian reform.

Education Cooperative

 Education cooperatives own and run licensed educational institutions in the Philippines

Cooperative Bank

 Provides various financial services to cooperatives and their members. Coop members, who are
also clients of the bank, own and operate a cooperative bank.

Multi-Purpose Cooperative

 Offering two or more types of services to their members. For example, a coop may provide both
lending and production services to its farmer-members.

OTHER TYPES OF COOPERATIVE BANKS

 Service Cooperative
 Financial Service Cooperative
 Fishermen Cooperative
 Health Services Cooperative
 Housing Cooperative
 Insurance Cooperative
 Transport Cooperative
 Electric Cooperative
 Water Service Cooperative
 Workers Cooperative
 Advocacy Cooperative
 Dairy Cooperative
COOPERATIVE BANKS IN ILIGAN CITY

AURORA INTEGRATED MULTIPURPOSE COOPERATIVE (AIMCOOP)

 AIMCOOP is a savings and loan cooperative. AIMCOOP focuses on savings mobilization and capital
build up for its members through high rates of return on interest and savings and time deposits.

MSU - IIT NATIONAL MULTI-PURPOSE COOPERATIVE

 VISION: A resilient cooperative of empowered members

 MISSION: To uplift the lives of the members by providing excellent financial products and allied
services.

COOPERATIVE BANKS IN ILIGAN CITY

ILIGAN DIAGNOSTIC CENTER AND MULTIPURPOSE COOPERATIVE

 A Diagnostic Facility that offers various services including laboratory, diagnostic, drug testing
and special packages.

THE ILIGAN CITY GOVERNMENT EMPLOYEES MULTI-PURPOSE COOPERATIVE (ICGEMPC)

 promote the Cooperative for improving the socio-economic well-being of the members
 as a way to eradicate the continuing proliferation of loan sharks which is very rampant in the area
particularly in the City Hall and
 to encourage key players in joining hands and envisioning the creation of a strong cooperative
with members actively contributing to its strength and stability.

ILIGAN CITY EAGLES CREDIT COOPERATIVE

To unite the majority members of the Fraternal Order of Eagles (Phil. Eagles) to be a member of the
cooperative to strengthen the idea of service through strong brotherhood by capital formation, patronage
and careful utilization of social fund.

COOPERATIVE BANK OF MISAMIS ORIENTAL (CBMO)

 It has been serving the cooperatives and its individual clients for 37 years. In 2016, CBMO has
reached one billion pesos in total assets with over 400 Samahang Nayon incorporators. During
this time, CBMO was known to be among the top 10 best performing cooperative banks in the
country.

MINDANAO CONSOLIDATED COOPERATIVE BANK -ILIGAN BRANCH

 Mindanao Consolidated Cooperative Bank MCCB is the product of a merger between 3

cooperative rural banks operating in Mindanao: Bukidnon Cooperative Bank, Cooperative Bank of
Misamis Oriental and Cooperative Bank of Agusan Norte.
FIRST COMMUNITY COOPERATIVE - ILIGAN (FICCO)

 VISION: FICCO is a dynamic and digitally innovative cooperative of empowered and satisfied
members by 2026.
 MISSION: FICCO is committed to uplift socio-economic conditions of its member by providing
financial and non-financial service.

Services Offered:

 Shares and Deposits

 Loans - with over 38 different type of loans to avail
 Free Based Product
 Insurance

WHAT IS ISLAMIC BANKING?

 Islamic banking, also referred to as Islamic finance or Shariah-compliant finance, refers to finance
or banking activities that adhere to Shariah (Islamic law).
 The Bangko Sentral ng Pilipinas (BSP) supports the development of Islamic banking and finance in
the country, consistent with the goal of financial inclusion of all Filipinos. Islamic banking and
finance serves everyone — granting Muslims much-needed access to financial services and
providing non-Muslims with alternative banking and finance options.

TYPES OF ISLAMIC FINANCES

MURABAHA (Agreed profit margin sale with cash or deferred payment of price)

 Sale of products where the seller must disclose to the buyer the cost of items sold either on cash
or deferred payment basis and a margin of profit included in the sale price (State Bank of
Pakistan).

IJARAH (Leasing)

 Ijarah is the Arabic term for a contract in which one party grants another party the right to use an
item it possesses for a predetermined period of time in exchange for a predetermined payment
(Malaysian Accounting Standards Board).

SALAM (Advance Payment — Deferred Delivery Sales)

 Refers to a type of transaction in which the seller agrees to give certain products to a customer at
a later date in exchange for a price that is fully paid in advance at the time the contract of sale is
established (State Bank of Pakistan).

ISTISNA

 Istisna is a type of sale in which a good is bought or sold before it even exists. It is a contract to
sell certain things that need to be made or built, with the promise that the maker or builder will
give them to the customer when they are done (UBL Digital).
MUDARABAH

 A method of Islamic banking in which a lender or investor (rab al maal) and a borrower or
investment manager (mudareb) form a profit-sharing partnership to run a business or invest in
something (Thomson Reuters).

Musharaka

 Refers to a joint partnership in which two or more individuals combine their capital or labor to
establish a business in which all partners share the profit in accordance with a predetermined
ratio and the loss in accordance with their respective contributions (Rammal, 2004).

TAWARRUQ

 Tawarruq includes two sale and purchase agreements. The first entails a seller selling an asset to
a buyer on a deferred basis. The buyer of the initial transaction will then transfer the same asset
to a third party for cash and on the spot market (Tijani, 2017).

PURPOSE

Sec 2. RA No. 6848

 Promote and accelerate the socio-economic development of the Autonomous Region by

performing banking, financing and investment operations and to establish and participate in
agricultural, commercial and industrial ventures based on the Islamic concept of banking.
 All business dealings and activities of the Islamic Bank shall be subject to the basic principles and
rulings of Islamic Shari’a within the purview of the aforementioned declared policy. Any zakat or
“tithe” paid by the Islamic Bank on behalf of its shareholders and depositors shall be considered
as part of compliance by the Islamic bank with its obligation to appropriate said zakat fund and to
disburse it in legitimate channels to be ascertained first by the Shari’a Advisory Council.

OBJECTIVES (ISLAMIC BANK BANGLADESH):

 To offer contemporary financial services in conformity with Islamic Shariah;

 To contribute towards economic development and prosperity within the principles of Islamic
justice;
 Optimum allocation of scarce financial resources; and
 To help ensure equitable distribution of income.

ISLAMIC BANK IN THE PHILIPPINES:

Al-Amanah Islamic Investment Bank

 The Al-Amanah Islamic Investment Bank of the Philippines (abbreviated AAIIBP) or Al Amanah
Islamic Bank is the first and only Islamic bank in the Philippines.
 AAIIBP has nine (9) operating banks in the Cities of Cagayan de Oro, Cotabato, Davao, Iligan,
General Santos, Marawi, Makati and Zamboanga and one in Jolo, Sulu.
MISSION:

 To become a fully Islamic Bank and afford Filipinos of the blessings and benefits of Islamic banking,
financing and investment

VISION:

 To be the leading and choice Islamic financial institution providing alternative banking services in
response to the emerging global Islamic markets and to promote and accelerate the socio-
economic developments of the Islamic communities in the Philippines by 2022.

CORE:

 Adherence to shari’ah principles, integrity, competence and excellence.

LOANS:

ASSETS:
ISLAMIC FINANCING PRODUCTS OF AL-AMANAH ISLAMIC INVESTMENT BANK

 Al - Ijarah Muntahia Bittamleek (Leasing ending in transfer of ownership)

 Bai Bithaman Ajil Financing (Deferred Payment Sale)
 Murabaha Financing (Cost-plus profit)
 Qard Al-Hasan
 Micro Financing Program
 Vehicle Financing Program

WHAT IS A THRIFT BANK?

 A thrift bank is also known as a savings bank or savings and loan association
 It is a form of financial institution that primarily accepts deposits and makes loans to individuals
and small businesses.
 The main goal is to promote savings and homeownership by providing various savings products
and mortgage loans.
 Savings accounts, certificates of deposit (CDs), personal loans, mortgage loans, and small
business loans are all common services provided by thrift banks.

PURPOSE OF THRIFT BANKS

 To offer Filipino consumers, homeowners, and micro, small, and medium-sized businesses
accessible and reasonably priced financial services.
 To offer additional fundamental banking services, like personal loans, checking accounts, and
accounts for specific demographics.
 To break up national or international banks' monopolies on the mortgage and lending markets
by giving local communities an alternative to well-known banks.

GOALS OF THRIFT BANKS

 provide savings and loan opportunities for the local population

 provide savings and loan opportunities for the local population
 provide savings accounts and mortgage loans to help the locals

TYPES OF THRIFT BANKS

SAVINGS BANK

 These banks generate funds from selling savings to customers and investing in mortgage loans.

PRIVATE DEVELOPMENT BANK

 These banks are formed to support government policies.

PRIVATE DEVELOPMENT BANK

 A locally or privately managed financial banking institution that takes long-term deposits to
provide amortized home loans.

CLASSIFICATIONS: ASSETS

 Ranking as to Total Assets Thrift Bank Group As of 31 December 2022 (Amounts in Million Pesos)

CLASSIFICATIONS: LOANS

 The value of outstanding loans granted by thrift banks for real estate activities in the Philippines
amounted to around 104 billion Philippine pesos as of February 2022. The overall value of loans
granted by thrift banks for production amounted to around 290 billion Philippine pesos as of this
period.

THRIFT BANKS IN THE PHILIPPINES

1. Philippine Savings Bank (PSBank)

 Philippine Savings Bank (PSBank), the thrift bank arm of the Metrobank Group was recognized
by The Asian Banker as the strongest thrift bank in the country, and the 2nd strongest bank in
the Philippines in its AB500 annual rating for 2016-2017.
 2. Bank of the Philippine Islands (BPI)
 BPI Family Savings Bank (BFSB), a wholly owned subsidiary of the Bank of the Philippine Islands,
is the Philippines ' largest thrift bank.
 The Bangko Sentral ng Pilipinas authorized BFSB to operate as a thrift bank on July 1, 1985. BFSB
has a significant presence in auto, housing and Ka-Negosyo loans and offers a wide array of
deposit products. It has 162 branches and 17 retail loans centers nationwide.

3. Bank of Makati (A savings bank) INC

4. Philippine Business Bank
5. Sterling Bank of Asia INC
6. United Coconut Planters Bank (UCPB)
7. Producers Savings Bank Corporation
8. First Consolidated Bank INC
9. HSBC Savings Bank (PHILS) INC
10. HSBC Savings Bank (PHILS) INC

WHAT IS RURAL BANKS?

 Rural banks, also known as community banks or countryside banks, are financial institutions that
operate primarily in rural areas and cater to the banking needs of the local population. These
banks play a vital role in promoting financial inclusion and economic development in rural
regions, where access to banking services may be limited.

PURPOSE AND OBJECTIVES

 To meet the credit needs of farmers and fishermen as well as of cooperatives and merchants in
rural areas.
 To promote and expand rural economy.
 To provide basic financial services to rural communities.
 Serve small businesses and communities in rural areas.

INSTITUTION COUNT
ASSET CLASSIFICATION

LOAN CLASSIFICATION

According to Republic Act No. 7353 (Rural Act of 1992),

Section 5: "Loans or advances extended by rural banks [...] shall be primarily for the purpose of meeting
the normal credit needs of farmers, fishermen or farm families owning or cultivating land dedicated to
agricultural production as well as the normal credit needs of cooperatives and merchants"

LOAN CLASSIFICATION

According to BSP's Manual of Regulations for Banks (2018 ed.),

The total amount of loans, credit accommodations, and guarantees that may be extended by a bank to
any person, partnership, association, corporation, or other entity shall at no time exceed twenty-five
percent (25%) of the net worth of such bank."

The total of the un0069mpaired paid-in capital including paid- in surplus, retained earnings, and
undivided profit, net of unbooked allowance for credit losses, and other adjustments as may be required
by the Bangko Sentral.
TOP RURAL BANKS IN THE PHILIPPINES BASED ON TOTAL ASSETS ( in BILLIONS) AS OF SEPTEMBER
2022

BDO NETWORK BANK

 formerly known as One Network Bank, Inc. (ONB)

 is a rural bank subsidiary of BDO Unibank Inc BDONB provides financial products that fit the
simple needs of unserved and underserved communities
 400 offices nationwide
 first rural bank in the Philippines to establish a checking account
 BDO Foundation - which has an advocacy to help improve the healthcare delivery system in the
Philippines.

The Philippine Deposit Insurance Corporation (PDIC) (Korporasyon ng Pilipinas sa Seguro ng

Deposito),

 is a Philippine government-run deposit insurance fund.

 It was established on June 22, 1963,
 by Republic Act 3591.
 It guarantees deposits up to ₱500,000.
 The primary function of PDIC is to protect small investors/depositors and build strong
confidence in banking.
 PDIC receives guidance from the International Association of Deposit Insurers.
EASTWEST RURAL BANK

 a premier rural bank and a wholly owned subsidiary of EastWest Banking Corporation and
Filinvest Development Corporation.
 This bank was established in 2013 when EastWest Banking Corporation acquired FinMan Bank,
Inc and Green Bank.
 As of 2016, EastWest Rural Bank had a total branch network of 76 stores
 2017 Balikat ng Bayan awardee for both Best Collecting and Best Paying Partner in the rural
bank category.

CARD BANK INC.

 CARD Bank, Inc.’s origin can be traced from the Center for Agriculture and Rural Development,
Inc. (CARD, Inc.)
 CARD spent considerable time in refining its operation using modified Grameen Bank
methodology in 1989.
 In 1997, CARD Inc. obtained its license from Bangko Sentral ng Pilipinas as a microfinance-
oriented rural bank.
 55 branches

RURAL BANKS IN ILIGAN

 BDO Network Bank / One Network Bank

 PBCom Rural Bank / Banco Dipolog
THEORY OF MONEY