NOTE: BLACK SA PPT PALAGAY LUDS RED:EXP KO YAN NO NID LAGAY PPT

Slide 1: The banking system

slide 2:
A banking system is a collection of institutions that provides us with financial services.
as stated these services include a variety of services such as offering loans, making investments and
accepting deposits

The entire banking sector is supervised by the Central bank of the Philippines, Bangko Sentral ng
Pilipinas.

Banks classified into universal, commercial, thrift banks, rural, cooperative, and Islamic banks.

Slide 3: Classifications of banks in the Philippines

Universal banks are authorized to provide various services, including investment, commercial, and
development banking, mutual funds, and housing loans
ex. Land bank of the Philippines, al Amanah Islamic investment bank of the Philippines, these banks
mostly handle giving advice to clients whether it be about their financial status to offering credit, loans
and asset management and many more services hence the term “universal”

Commercial banks, on the other hand, are privately owned institutions that accept deposits and offer
checking services. In the Philippines, these kinds of banks are the largest group of financial institutions
and the most popular among customers with different financial needs because of their vast financial
services.
ex. Bpi these banks offer services that people normally avail such as depositing money for safe keeping,
providing clients with credit cards, loans and investments

slide 4:
thrift banks comprise savings and mortgage banks and loan associations, which focus on accumulating
and investing depositors’ savings. This type of bank also provides short-term to long-term financing
ex. BPI FAMILY SAVINGS BANK INC , manila bank, These banks are not usually owned by the
government, but the deposits made into thrift banks are usually protected by a government program or
government agencies
there are three types:
*Savings and Mortgage Banks or SMBs:
Because they were established to encourage affordable homeownership, savings and mortgage banks
are financial institutions that specialize in both savings deposits and mortgage loans. As a result, they
have emerged as one of the main providers of mortgage loans for modern homebuyers. With the money
and deposits, it has acquired from individual investors, it provides mortgage services to consumers.
Investments, loans, and domestic Letters of Credit with a predominance in Philippine currency are
permitted. Ex Union Savings and Mortgage Bank
NOTE: BLACK SA PPT PALAGAY LUDS RED:EXP KO YAN NO NID LAGAY PPT

*Private Development Banks or PDBs:

They are authorized to grant real estate mortgage loans with maturities of not and for investment
in agricultural, industrial, manufacturing, commercial, and other economic enterprises
. Ex. Wealth Development Bank Corporation, Pampanga Development Bank

*Stock Savings and Loan Associations or SSLA

They are corporations engaged in the business of accumulating the savings of its member stockholders
and using such accumulations together with its capital in the case of stock corporation, For loans
and/or investment in the securities of productive enterprises or securities of the Government or its
political subdivision instrumentalities or corporation. (mostly for stock corporations)

slide 5:
rural and cooperative banks are authorized to offer essential financial services to rural residents and
financial assistance to farmers.
Ex. Agribusiness Rural Bank, Inc., Aliaga Farmers Rural Bank, Inc., ARDCIBank, Inc. - A Rural Bank.. These
banks are responsible for development of rural areas and their economies by providing basic financial
services to rural populace. The major difference between rural and co-operative banks is the nature of
their ownership. Rural banks are owned by the private individuals while co-operative banks are under
the ownership of co-operative societies
Islamic banks cater to Muslim Filipinos and operate per Islamic laws.
Islamic banking business refers to a banking business with objectives and operations that do not involve
interest (ribā) as prohibited by the Shari'ah and which conducts its business transactions in accordance
with the principles of the Shari'ah ex. Al-Amanah Islamic Investment Bank of the Philippines