Professional Documents
Culture Documents
INTRO Phil Banking System
INTRO Phil Banking System
Financial System
LCUP CBEA RFBT
SY 2020
History of the Philippine
Banking
History of the Philippine
Banking
Banking in the Philippines began in the 16th Century
This was the establishment of Obras Pias (Pious Works)
by laymen associated with the religious orders.
Funded from legacies and donations of wealthy
individuals
The Obras Pias was the source of credit and its funds
were invested in mortgage financing loans, trade with
Acapulco and maritime insurance.
Obras Pias profits were channeled to the construction of
churches , government buildings and other charitable
and religious projects.
History of the Philippine
Banking
Among the first banks that emerged in 19th was the
Rodriguez Bank which was considered as more of a loan
association than a regular bank.
The need for more extensive banking services and
facilities led the board of authorities (Junta de
Autoridades) in Manila to establish on August 1, 1851 the
first state bank in the Philippines.
The Banco Espanol-Filipino de Isabel II was the first state
bank and Obras Pias provided 50% of its bank capital.
In 1873, British-Orient banks opened in the country as a
result of the expanded Philippine –European trade that
followed the opening of the Suez-Canal in 1869.
History of the Philippine
Banking
The Chartered bank of India, Australia and China opened
in Manila in 1872.
The Hongkong and Shanghai Banking Corporation
established its Manila branch in 1875.
The first mutual savings in the country is Monte de
Piedad Y Caja de Ahorros - a unique combination of
savings banks and pawnshops opened in 1882. Initial
capitalization was also provided by Obras Pias.
The bank was later renamed to Monte De Piedad and
Savings Bank.
The Banco Espanol-Filipino de Isabel II changed its name
to Bank of the Philippine Islands on January 1, 1912.
History of the Philippine
Banking
BPI established correspondent arrangements with a Paris
bank for servicing of client transactions with
counterparts in Europe and other parts of the world.
BPI is considered as the oldest bank in the country.
During the American Occupation , seven domestic
private banks came to existence. Branches of Japanese a
well as Chinese banks were also opened during the early
part of the period.
The Postal Savings Bank was put up in 1906.
The first agricultural bank was established in 1908 but
its assets and liabilities were transferred to the
Philippine National Bank which was organized in 1916.
History of the Philippine
Banking
Three years after the American regime ended, the
Central Bank of the Philippines was created,
establishing a managed monetary system in the
Philippines.
It was given the sole authority to issue the country’s
paper money, regulate and supervise the country’s
banking system.
Banko sentral ng pilipinas
Banko Sentral ng Pilipinas
(BSP)
The BSP was created under Section 2 of RA 7653 better
known as “The New Central Bank Act”.
It traces the roots and fundamental structure from its
predecessor, the Central Bank of the Philippines.
The Bank began formal operations on July 3, 1993.
The BSP performs several important functions that have
significant effect on the value of the money.
BSP’s Important Functions