OVERVIEW OF THE PHILIPPINE FINANCIAL SYSTEM Financial System- institutional units an ma!"ets t#at inte!act $o! t#e %u!%ose o$ mo&ili'in( $uns $!om lene!s to &o!!o)e!s* ELEMENTS OF FINANCIAL SYSTEM + *Financial claims- money an t#e !i(#t to !ecei,e money une! s%ecic ci!cumstances* .* Financial institution- %!i,ate an (o,e!nment o!(ani'ation )#ose assets consist %!ima!ily o$ claims o! income is %!ima!ily e!i,e $!om %!o,iin( se!,ices in connection )it# claims* / *Financial inte!meia!ies- institution t#at eal )it# c!eation an issuance o$ claims a(ainst t#emsel,es an use t#e %!ocees to ac0ui!e an #ol claims a(ainst ot#e!s* 1* Financial Ma!"ets- ma!"et in )#ic# %eo%le an ientities can t!ae nancial secu!ities2 commoities an ot#e! $un(i&le items o$ ,alue at lo) t!ansaction cost an at %!ices t#at !e3ect su%%ly an eman* 4* 5o,e!nment a(encies- i*e* Cent!al 6an"2 maintains inte!nal inte!nal an e7te!nal e7te!nal sta&ility o$ %eso 8* La) an %olicies- $o!mulate to ensu!e t#at t#e esi!e le,els o$ in,estment2 em%loyment2 %!ouction2 income an consum%tion* consum%tion* F9NCTIONS OF FINANCIAL INSTIT9TIONS T#e (ene!al $unction $unction is to $acilitate t#e t#e t!ans$e! o$ $uns $uns $!om $!om t#e sa,e!s an an t#e use!s* +* In,esti(a In,esti(ation tion an c!eit c!eit analysis analysis .* Matc#in( Matc#in( t#e t#e su%%ly su%%ly an eman eman $o! $uns $uns /* P!o,i P!o,isio sion n $o! $o! li0u li0uii iity ty :EVELOPMENT :EVELOPMENT OF THE PHILIPPINE FINANCIAL SYSTEM •
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O&!as Pias- means %ious )o!"s; t#e !st c!eit institutions in t#e P#ili%%ines sta!te &y Fat#e!
yea!s late! F!ancisco Ro!i(ue' o!(ani'e t#e Ro!i(ue' 6an" 6anco Es%anol-Fili%ino e Isa&ella e II- !st P#ili%%ine &an" esta&lis#e in +?4+ +?8@- o%enin( o$ t#e Sue' Sue' Canal !esulte in e7%ansion e7%ansion o$ P#ili%%ine P#ili%%ine t!ae +?=/- C#a!te!e 6an" o$ Inia2 Aust!alia an C#ina set u% manila &!anc# 6!itis# &an"s ominate t#e economy u!in( t#e S%anis# coloni'ation +??.- S%ain )as a&le to %ut u% t#ei! !st sa,in(s &an"2 Monte e Piea2 es%ite o$ 6!itis# omination +?@?- 9S ac0ui!e P#ili%%ines t#!ou(# T!eaty o$ Pa!is )#ic# (a,e )ay to $!ee t!ae &et)een 9S an t#e P#ili%%ines %!o,ie &y t#e Payne Payne Al!ic# Act*
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+@>.- Inte!national 6an"in( Co!%o!ation o$ Ne) Yo!" set u% an oce in t#e count!y &ut )as ac0ui!e in +@+4 &y t#e National City 6an" o$ Ne) Yo!"*It is no) calle Fi!st National City 6an"* +@>1- Postal Sa,in(s 6an" +@>8- Fi!st A(!icultu!al 6an" o$ t#e P#ili%%ine 5o,e!nmentB In +@+82 its assets )e!e t!ans$e!!e to t#e Ne)ly o!(ani'e P#ili%%ine National 6an" PN6D C#inese 6an"s )e!e $o!me in +@.>s PN6 close its oo!s )it# t#e comin( o$ t#e
STR9CT9RE OF THE PHILIPPINE FINANCIAL SYSTEM Cent!al 6an" o$ t#e P#ili%%ines 6an"in( Institutions +* P!i,ate 6an"in( Institutions a* Comme!cial 6an"in( Institutions E7%ane comme!cial &an"s O!ina!y comme!cial &an"s &* T#!i$t 6an"s Sa,in(s an mo!t(a(e &an"s P!i,ate e,elo%ment &an"s Stoc" sa,in(s an loan associations c* Ru!al &an"s .* 5o,e!nment 6an"in( Institutions a* P#ili%%ine National 6an" &* :e,elo%ment 6an" o$ t#e P#ili%%ines c* Lan 6an" o$ t#e P#ili%%ines * P#ili%%ine Amana# 6an" • •
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Non-&an" Financial Institutions +* P!i,ate non-&an" Financial Institutions a* In,estment #ouses &* In,estment com%anies c* Financin( com%anies
* Secu!ities eale!s&!o"e!s e* Non-stoc" sa,in( an loan association $* 6uilin( an loan association (* Pa)ns#o%s
#* Lenin( In,esto!s i* Fun mana(e!s * T!ust com%aniese%a!tments "* Insu!ance com%anies l* Ventu!e Ca%ital Co!%o!ations
.* 5o,e!nment Non-&an" Financial Institutions a* 5o,e!nment Se!,ice Insu!ance System &* Social Secu!ity System c* National In,estment an :e,elo%ment Co!%o!ation
