Bank of VVAM Eme.

The Philippine Financial

System
P R E S E N TAT I O N B Y: G R O U P 1 0

123 Sakanya st. Iniwan City

Depository Institutions
A financial institution that obtains its funds mainly through deposits from
the public. This includes commercial banks, savings and loan
associations, savings banks and credit unions.

Bangko Sentral ng Pilipinas (BSP)

It drives programs and advocacies to ensure that the reach of
financial services expands to the unserved and underserved
segments of the population, especially the country's most
vulnerable.

To promote and maintain price stability, a strong financial

system, and a safe and efficient payments and settlements
system conducive to a sustainable and inclusive growth of the
economy.
 Classification of Banks
Universal Banks Commercial Banks
are financial service conglomerates that combine are privately-owned institutions that accept deposits
investment banking, commercial banking, and lend money to projects to earn interest. They
development banking, and insurance to encompass a also offer personal, business, and mortgage loans,
wider variety of services. They are also authorized to checking account services, and basic financial
engage in other functions such as merchant banking, products like savings accounts and certificate of
mutual funds, factoring, housing finance, and deposit to individuals and businesses. They are
practically all types of functions typical in the primarily owned by shareholders and are profit-
banking business. based.
According to BSP official website

Updated as of Nov. 7, 2023

 Classification of Banks
Thrift Banks
are primarily engaged in mobilizing the small savings of the people. They provide funds for agriculture and industry at reasonable
interest rates. The small producers like farmers, fishermen, craftsmen, and poor consumers can rely on such banks for financing
their production and consumption inputs.

• Private Development Bank

is a type of financial institution that specializes in offering savings accounts and
originating home mortgages for consumers. This is quite different from the
government institution of the same name.

• Savings and Mortgage Bank

the primary function of savings and mortgage bank is to receive time deposit of
different types and to invest its funds in long term investment.

• Stocks Savings and Loan Associations

very similar to the savings and mortgage banks are savings and loans
associations nowadays. However, these institutions may either be stock or non-
stock corporations.
 Classification of Banks
Rural Banks
it fulfill the investment function by allowing small farmers to finance their needs
through the granting of loans for capital or other uses.

Specialized Government Banks

are completely government-owned institutions established mainly to provide medium
and long-term credits to the industrial, agricultural, and real estate sectors of the
economy.

Cooperative Banks
refers to a small financial institution started by a group of individuals to address the
capital needs of their specific community. Such financial institutions are owned and
controlled by their members, and the board members are democratically selected to
oversee the operations.
 Classification of Banks
Rural Banks
it fulfill the investment function by allowing small farmers to finance their needs
through the granting of loans for capital or other uses. The Al-Amanah Islamic Investment Bank of the
The Development Bank of the Philippines The Land Bank of the Philippines. The Agrarian Philippines (Islamic Bank) was created under
(DBP) started operating in 1935 as the National Reforms Code created the Land Bank of the Republic Act No. 6848 for the purpose of
Loan and Investment Board. Its first mission Philippines (LBP) to finance the acquisition and promoting and accelerating the socio-economic
was to coordinate and manage trust funds. distribution of agricultural estates for division growth of Mindanao, particularly the provinces

Specialized Government Banks and resell these small landholders. of Cotabato, Lanao del Sur, Lanano del Norte,
Zamboanga del Sur, Zamboanga del Norte, and
Sulu.

are completely government-owned institutions established mainly to provide medium

and long-term credits to the industrial, agricultural, and real estate sectors of the
economy.

Cooperative Banks
refers to a small financial institution started by a group of individuals to address the
capital needs of their specific community. Such financial institutions are owned and
controlled by their members, and the board members are democratically selected to
oversee the operations.
 Classification of Banks
& its Role in our economy
Universal Banks Commercial Banks
Universal banks in the Philippines Commercial banks in the Philippines have
are like financial helpers. They do a a direct and far-reaching impact on the
lot of things to make sure the economy. From supporting businesses and
country's money system is strong, real estate development to fostering
businesses can grow, and people financial stability and efficiency,
can have jobs and opportunities. commercial banks are integral to the
economic well-being of the country.
Thrift Banks
Thrift banks are vital to the Philippine
economy by providing individuals and
small and medium-sized enterprises
(SMEs), particularly the unbanked and
underbanked access to financial services.

Rural Banks Specialized Government Banks Cooperative Banks

Rural banks have been entrusted by
the law with the vital and noble role
of serving the financing needs of
farmers, fisherfolks and the people
of rural communities to achieve
inclusive economic growth.
Specialized Bank activates and support the
role of the private sector in economic
activities and are therefore one of the most
important pillars of economic reforms in
some countries at the present time.
Cooperative banks are the most important
funding providers for many households and
SMEs, especially in poorer regions. Our
empirical results show that cooperative
banks play a significant role in enhancing
local economic performance.
 NON-BANK FINANCIAL
INSTITUTION / INTERMEDIARIES

These are other financial institutions which engage

in specific functions. They provide services related to claims,
financial information, and advice, manage portfolios of financial
assets on behalf of other economic units, buy and sell claims on
institution from clients, and assist in finding sources for those
economic units seeking loans. These either private or government
non-bank financial institutions
 NON-BANK FINANCIAL
INSTITUTION / INTERMEDIARIES

Nonbank financial institutions (NBFIs), are financial institutions that offer

various banking services but do not have a banking license. Generally,
these institutions are not allowed to take traditional demand deposits—
readily available funds, such as those in checking or savings accounts—
from the public. This limitation keeps them outside the scope of
conventional oversight from federal and state financial regulators.
 WHO OVERSIGHT NBFI’s?
Securities and Exchange Commission
(SEC)
The SEC is the main regulatory agency
responsible for overseeing and regulating
NBFIs that are engaged in securities-
related activities. This includes
investment companies, mutual funds, and
other entities involved in the issuance,
trading, and offering of securities.
Bangko Sentral ng Pilipinas
(BSP)
The BSP is the central bank of the
Philippines and has regulatory authority
over NBFIs engaged in financial
intermediation activities. This includes
finance companies, lending companies,
pawnshops, and other non-bank entities
involved in credit extension and
financial services.
Securities can take various forms, including:

• Stocks
• Bonds
• Mutual Funds
• Exchange-Traded Funds
• Derivatives
 . Investment House/
Fund Managers
Bank

Financing Companies

Security Dealer/Brokers

Investment Companies
Private Non-Bank Institution
. INVESTMENT
HOUSE/ BANKS

The term "investment house" is defined to mean as "any enterprise" which engages
in the underwriting of securities of other corporations ". Underwriting is the act or
process of guaranteeing the distribution and sale of securities of any kind issued by
another corporation. Securities are written evidence of ownership, interest, or
participation in any enterprise, or written evidence of Indebtedness of a person
Investment House/Bank Services

Underwriting securities involves assisting companies in issuing

stocks or bonds and ensuring their successful sale to investors.

Advisory services provided by investment houses include strategic financial

advice, mergers and acquisitions guidance, and assistance with corporate
restructuring

Investment houses also help companies raise capital through various means,
such as initial public offerings (IPOs) or private placements.
 Financing Companies

• Finance companies are a type of non-bank financial institution that provides

financing and credit options to individuals and businesses. They have assets and
liabilities and offer loans and advances.

• Financing companies or partnerships, except those regulated by the Bangko

Sentral, the Insurance Commissioner, and the Cooperative Administration Office
which are primarily organized for the purpose of extending credit facilities to
consumer to industrial , commercial or agricultural enterprises.
Some common types of financing companies
that fall under the category

• Consumer Financing Companies

• Industrial Financing Companies
• Commercial Financing Companies
• Agricultural Financing Companies
Financing Companies Services

Consumer loans: Financing companies offer consumer loans, including personal

loans, auto loans, and credit card loans, to individuals for various purposes such as
purchasing vehicles, funding education, or covering personal expenses

Commercial loans: Financing companies provide commercial loans to

businesses for working capital, expansion, equipment purchase, or other
business-related needs.

Leasing services: Financing companies offer leasing services, allowing businesses to

acquire assets such as machinery, equipment, or vehicles on lease instead of
purchasing them outright.
 Security Dealer/Brokers

• Security dealer/brokers are financial intermediaries that facilitate the buying and
selling of securities in the financial markets.

• They act as intermediaries between buyers and sellers, executing trades on

behalf of their clients.

• Security dealer/brokers play a crucial role in ensuring the smooth functioning of

the securities market.
Security Dealer/Brokers

Executing trades: Security dealer/brokers execute trades on behalf of their clients.

They facilitate the buying and selling of security, ensuring that the transactions are
carried out efficiently and accurately.

Market-making: Security dealer/brokers often act as market-makers, providing

liquidity in the market. They quote bid and ask prices for securities, which helps
create a market for buyers and sellers to transact.

Providing liquidity: Security dealer/brokers contribute to the liquidity of the

market by standing ready to buy or sell securities at any time. They help
ensure that there is a continuous supply of securities available for investors.
SECURITIES/BROKERS
DEALERS

Pursuant to the provision of the Revised

Securities Act, no broker, dealer, or salesman
must engage in business in the Philippines as
such broker, dealer, or salesman or sell any
securities, including securities exempted under
the said law
 Investment Companies

• Investment companies are entities that pool funds from individual investors to
create diversified investment portfolios. They manage these portfolios on behalf
of the investors, making investment decisions and buying/selling securities to
achieve the investment objectives of the funds.
• Their primary role is to professionally manage investments and provide
individuals with access to a diversified portfolio without directly managing it
themselves.
 Fund Manager

• Fund managers are professionals responsible for managing investment funds on

behalf of clients. They oversee the investment decisions, portfolio construction,
and risk management of the funds.

• Their primary responsibility is to generate returns for the investors and achieve
the investment objectives of the funds they manage.
3.
NON-BANK
THRIFT
INSTITUTIONS
 NON-BANK THRIFT
INSTITUTIONS
A non-bank thrift institution is a financial organization that provides
banking-like services but is not classified as a traditional commercial
bank. These institutions typically focus on specific types of financial
services, such as savings and loans, and often operate on a cooperative or
member-owned basis.
Has two kinds:
• Mutual Building and Loan Association
• Non-Stock Savings and Loan Association
MUTUAL BUILDING AND LOAN
ASSOCIATION
A Mutual Building and Loan Association is a type of financial institution
that operates on a cooperative basis. Members pool their savings to
provide mortgage loans and other financial services to each other.
NON-STOCK SAVINGS AND
LOAN ASSOCIATION
A non-stock savings and loan association is a type of financial
institution where members pool their savings to provide loans and
financial services, and it operates without issuing stock or shares.
4. Government Non-Bank Financial
Institutions
> Government Non-Bank Financial
Institutions
A non-bank financial institution is a
company that offers financial services,
but does not hold banking licences and
therefore cannot accept deposits.
SSS (Social Security Systerm)
The protection that a society
provides to individuals and
households to ensure access to health
care and to guarantee income
security
GSIS (Government Security Insurance
System)

Provides social security

coverage to employees in
the public sector.
PAG-IBIG (Home Development
Mutual Fund)
Offers assistance to its
members by providing
affordable financing for their
housing needs.
 Group 10

Thank You
For Your Attention

Group 2
Vincent Lee Cuapiaco
Almira Maril Gallardo
Dianne Bianca Malinab
111 Uno St., Uno City Maria Victoria Paje