MAJOR TYPES OF

FINANCIAL INSTITUTIONS

AND BASIC INVESTMENT PRODUCTS LIKE SA. GIVING BUSINESS LOANS AND AUTO LOANS. AND CERTIFICATES OF DEPOSIT . MORTGAGE.COMMERCIAL BANKS • A BANK THAT OFFERS SERVICES TO THE GENERAL PUBLIC AND TO COMPANIES • SERVICES: ACCEPTING DEPOSITS.

Bank of the Philippine Islands Citibank Philippines Equitable Bank Far East Bank & Trust Company International Exchange Bank Land Bank of the Philippines Metropolitan Bank and Trust Company (Metrobank) Philippine Banking Corporation (PhilBank) Philippine Commercial International Bank (PCI Bank) Philippine National Bank Solidbank Corporation Standard Chartered Unionbank of the Philippines United Coconut Planters Bank Urban Bank .

. • For underprivileged • Accept saving and time deposit.RURAL BANKS • "Rural Act of 1992.“ –Cory Aquino • Designed to make needed credit available and readily accessible in the rural areas on reasonable terms.

and stock savings and loans associations organized under existing laws.THRIFT BANKS • RA 7906 • "Thrift banks" shall include savings and mortgage banks. private development banks. and any banking corporation that may be organized for the following purposes: .

. or in financing for homebuilding and home development. mortgages in real estate and insured improvements thereon. in commercial papers and accounts receivables.• (1) Accumulating the savings of depositors and investing them. bonds and other forms of security or in loans for personal or household finance. drafts. together with capital loans secured by bonds. bills of exchange. acceptances or notes arising out of commercial transactions. chattel mortgage. in readily marketable and debt securities. whether secured or unsecured.

to businesses engaged in agriculture. and • (3) Providing diversified financial and allied services for its chosen market and constituencies specially for small and medium enterprises and individuals.and long-term financing. .• (2) Providing short-term working capital. industry and housing. services. medium.

agricultural and real estate sectors of the economy. .SPECIALIZED GOV’T FINANCIAL INSTITUTIONS • these are completely governmentowned institutions established mainly to provide medium and long-term credits to the industrial.

an individual or company will use an offshore bank in a lowtax jurisdiction (or tax haven) that provides financial and legal advantages.OFFSHORE BANKS • is a bank located outside the country of residence of the depositor. . Typically.

in the  form of compensation resulting from loss.  damages. The  company calculates the risk of occurrence then determines the cost to replace (pay  for) the loss to determine the premium  amount. amount paid for insurance . • Premium. injury.INSURANCE COMPANIES • A business that provides coverage. treatment or hardship in  exchange for premium payments.the price of insurance.

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•  is a financial institution that does not have a full banking license or is not supervised by a national or international banking regulatory agency. investing. or placement of funds or evidences of equity deposited with them. either for their own account or for the account of others.NON-BANK FINANCIAL INSTITUTION • persons or entities whose principal functions include the lending. or otherwise coursed through them. .

• OFFSHORE BANKS • INSURANCE COMPANIES • NON-BANK FINANCIAL INSTITUTION • TAKE DEPOSI TS FROM PUBLIC INTERMEDIARI ES WITH NONDEPOSIT SOURCES OF FUNDS An intermediary is someone who acts as a go-between or a mediator between two other people.  .• • • • COMMERCIAL BANKS RURAL BANKS THRIFT BANKS SPECIALIZED GOV’T FINANCIAL INST.

TAXATION • GENERAL PRINCIPLES •  POWER OF TAXATION • TAXATION – power by which the sovereign through its law-making body raises revenue to defray the necessary expenses of government from among those who in some measure are privileged to enjoy its benefits and must bear its burdens. .

.• TAXES – enforced proportional contributions from the persons and property levied by the law-making body of the State by virtue of its sovereignty in support of government and for public needs.

levied by the legislature. assessed with some reasonable rule of apportionment. pecuniary burden payable in money. .CHARACTERISTICS OF TAXES • • • • forced charge. (see theoretical justice) • imposed by the State within its jurisdiction. • levied for a public purpose.

especially by way of notice and opportunity for hearing be provided • the tax must not impinge on the inherent and Constitutional limitations on the power of taxation .REQUISITES OF A VALID TAX • should be for a public purpose • the rule of taxation shall be uniform • that either the person or property taxed be within the jurisdiction of the taxing authority • that the assessment and collection of certain kinds of taxes guarantees against injustice to individuals.

Hence. (CIR v. Without taxes.) . the government would be paralyzed for lack of the motive power to activate and operate it. Inc. despite the natural reluctance to surrender part of one's hard-earned income to the taxing authorities. Algue. every person who is able to must contribute his share in the running of the government.THEORIES AND BASES OF TAXATION • Lifeblood Theory – Taxes are what we pay for civilized society.

(Phil. It is a necessary burden to preserve the State's sovereignty and a means to give the citizenry an army to resist an aggression. and facilities and protection which a government is supposed to provide. Inc. CIR) . Guaranty Co. a navy to defend its shores from invasion.THEORIES AND BASES OF TAXATION • Necessity Theory – The power to tax is an attribute of sovereignty emanating from necessity. v. public improvements designed for the enjoyment of the citizenry and those which come within the State's territory.. a corps of civil servants to serve.

.) • Note: While taxes are intended for general benefits. taxes are paid. special benefits to taxpayers are not required. Inc.THEORIES AND BASES OF TAXATION • Benefits-Protection / Reciprocity Theory • Taxation is described as a symbiotic relationship whereby in exchange of the benefits and protection that the citizens get from the Government. The Government renders no special or commensurate benefit to any particular person or property. (CIR v. Algue.