BRUCE, SAMANTA FAYE M. MRS.

SUSAN REYES
BSBA FM2G2. ASSIGNMENT
1. Illustrate the structure of Philippine Financial System.
BANGKO
SENTRAL NG
PILIPINAS

BANKING NON-BANK FINANCIAL

INSTITUTIONS INSTITUTIONS

Private Banking Government Banking Private Non- Government Non-

Institutions Bank
Institutions Bank Financial
Financial Institution
Institutions
Commercial Philippine Develoment Land Bank Philippine
Banking Thrift Banks Rural Banks National Bank of the of the Amanah Investment Governement
Institutios Banks Philippines Phillipines Bank Banks Service Insurance
System
Ordinary Finance
Commercial Universal Companies
Banks Saving &
Banks Mortgage Social Security
Banks Securities System
Dealers/ Brokers

Private Pawnshop
Develoment
Banks Landing
Investors

Fund Manager
Saving & Loans
Association
Trust Companies

Insurance
Companies

Etc.
2. Describe and explain the function of each component of the system
• Central Bank: Bangko Sentral ng Pilipinas (BSP)
Function: The BS is the country's central monctary authority. Its imary functions include formulating and implementing monetary policy, issuing the national
ourrency, regulating banks and financial stitutions, and maintaining price stability. It acts as the lender of last resort to ensure financial system stability.
• Banking Institution
Function: is to help people and businesses with their money. Banks provide a variety of services, such as keeping your money safe in § savings account, letting you
borrow money for things like buying a house or starting a business, and helping you make payments or transfers.
• Private Banking Institution
Function: Provide personalized financial services to individuals who have a significant amount of money to manage. These institutions offer a range of exclusive
services, such as personalized investment advice, wealth management, and tailored banking solutions, to meet the unique financial needs of their high-net-worth
clients.
• Government Banking Institutions
Function: Handle and manage the money of the government. They help the government with tasks like collecting taxes, paying salaries, and funding projects.
These institutions ensure that the government's finances are organized, secure, and used in ways that benefit the country's development and well-being.
• Commercial Banking Institution
Function: Offer traditional banking services such as deposits, loans, and other financial products to individuals and businesses. They play a key role in facilitating
transactions and providing financial support for economic activities.
•Thrift Banks
Function: Similar to commercial banks but often cater to a specific market segment, such as thrift or savings-oriented customers. They offer a range of banking
services, including savings accounts and loans.
• Rural Banks
Function; Provide banking services specifically tailored to the needs of people in rural areas. These banks offer basic financial services such as savings accounts,
loans, and other banking transactions to individuals and businesses in rural communities.
• Ordinary Commercial Banking
Function: Provide everyday banking services to individuals and businesses. This includes things like letting people open savings or checking accounts, borrow
money for homes or businesses, and facilitating day-to-day financial transactions such as deposits, withdrawals, and payments
• Universal Banks
Function: Provide a wide range of financial services, including commercial banking, investment banking, and asset management.
They serve diverse clients, from individuals to large corporations, and contribute to economic development through various financial products and services.
• Saving & Mortgage Banks
Function: Savings banks primarily focus on attracting and managing personal savings from individuals and small businesses. Mortgage banks specialize in
providing loans, particularly for real estate purchases.
• Private Development Banks
Function: Offer funds to private enterprises to help them start, expand, or undertake projects.
• Saving & Loans Association
Function: As a community-based financial cooperative where members pool their savings to provide loans to one another.
Members contribute regularly to a common fund, and this pooled money is used to offer low-interest loans to members in need.
• Rural and Cooperative Banks
Function: Focus on serving rural areas and cooperative organizations. They provide banking services tailored to the needs of agricultural communities and local
cooperatives.
• Philippine National Bank
Function: Provides traditional banking services such as savings and
checking accounts, as well as various types of loans.
• Development Bank of the Philippines
Function: Funds and supports projects that contribute to national development, focusing on areas such as infrastructure, social services, micro-enterprises,
agriculture, and environmental sustainability.
• Land Bank of the Philippines (Landbank):
Function: Concentrates on agricultural and rural development, providing financial services and support to farmers, fisherfolk, and
rural communities.
• Philippine Amanah Bank
Function: Serves as a government-owned Islamic bank in the Philippines, providing Sharia-compliant financial services to support the financial needs of the
Muslim community.
• Non-Bank Financial Institutions
Function: Provide various financial services but do not have a banking license. They include entities like insurance companies, investment firms, and microfinance
institutions, offering diverse financial products outside traditional banking.
• Private Non-Bank Financial Institution
Are privately-owned financial entities that operate without a banking
license. They offer a range of financial services such as insurance, investment management, and microfinance, contributing to the overall financial landscape and
providing alternative options to
traditional banking services.
• Investment Banks
Function: Facilitate financial transactions for companies,
governments, and institutions, including capital raising, mergers and
acquisitions advice, and trading financial instruments.
• Finance Companies
Function: Provide loans and financial services to individuals and businesses outside traditional banking, specializing in areas such as consumer loans, vehicle
financing, and small business lending.
• Securities Dealers/Brokers
Function: facilitate the buying and selling of financial securities, such as stocks and bonds, connecting buyers and sellers in financial markets.
•Pawnshops and Money Service Businesses
Function: Provide financial services like remittances, money exchange, and pawn services, catering to individuals who may not
have access to traditional banking.
• Lending Investors
Function: provide loans to individuals or businesses in exchange for interest payments, operating outside traditional banking institutions.
• Fund Managers
Fund managers oversee and make investment decisions for
investment funds, ensuring the growth and performance of the fund
in accordance with its objectives.
• Trust Companies/Departments
Trust companies/departments manage and administer trusts, handling
assets on behalf of individuals or entities according to specified
terms and conditions.
• Insurance Companies:
Function: Offer insurance products to individuals and businesses to manage and mitigate various risks. These include life insurance, non-
life insurance (property and casualty), and health insurance.
• Government Non-Bank Financial Institutions
-Government Non-Bank Financial Institutions support financial
initiatives and projects at the national level, often focusing on specific sectors such as housing, agriculture, or small businesses.
• Government Service Insurance System
Provides insurance and retirement benefits to government employees in the Philippines.
• Social Security System
Provides social insurance, retirement, and other related benefits to private sector employees in the Philippines.