The Banking Sector

Specialized Banks

The three specialized government banks, composed of the Development Bank of the Philippines (DBP), the Land Bank of the Philippines (LBP), and the Philippine Amanah Bank, play special roles in the economic development of the country.

Thrift Banks

It includes savings and mortgage banks, private development banks and stocks savings and loan associations.

Expanded Commercial Bank or Universal Bank

It is considered as a one stop com-bank performing com-banking functions and non-related banking activities.

Rural Banks

The passage of the Rural Banks Act in 1952 saw the emergence of regional unit or rural banks which specialize in the extension of small loans for agricultural purposes as well as for retail traders.

Non-stock savings and loans associations

are associations, which primarily provide short-term loans to members and whose main sources of income are savings and time deposits.

Pawnshops or pawnbrokers

are business establishments engaged in lending money on personal property delivered as security, pledge or collateral.

securities dealers

are companies which buy and sell securities of others or which acquire securities to resell or offer them for sale to the public.

employee welfare funds

are constituted to employers wherein benefits are payable to employees upon retirement, death, cessation from work and other.

Credit unions

are cooperative composed of small producers and consumers who voluntarily join together to form their business enterprises which themselves own, control and patronize.

Islamic banks

banks established to promote and accelerate socio-economic development of our Muslim brothers (esp. in ARMM) based on the Islamic concept of banking.

Savings banks

banks organized primarily to accumulate savings deposits and invest them for specific purposes.

Investment houses

constitute the largest group, in terms of resources, among the private non-bank financial intermediaries.

Cooperative banks

duly registered associations of persons who undertake ventures in accordance with universally accepted cooperative principles.

open - end companies

no fixed amount of paid-in capital; redeemable at any time; on day-to-day basis.

close - end companies

relatively fixed amount of outstanding capital; no provisions for the issuance or redemption of shares on a day-to-day basis.

Commercial Bank

It offers the greatest variety of banking services among financial institutions such as: accepting demand, savings, time and foreign currency deposits, handling local foreign currency deposits, handling local, and foreign fund remittances, money market transactions like administering trust funds; and a host of other services that truly make them the department stores in finance.

Commercial Banks

It represents the largest single group of the country's banking and financial intermediaries operating on a branch-banking organizational structure with all head offices located in Metropolitan Manila and the largest network branches and extension offices distributed throughout the country.

trust funds

are created by trustors, or estates of absent persons, minors or by courts, thereby creating a trust relationship between the owner (trustors) of the fund or property and the manager (trustee) for the benefit of a third person called the beneficiary.

Trust and pensions fund managers

are institutional and personal administrators of funds created or constituted for the benefit of others.

Mutual and Building Loan Associations

are mutually owned stock companies that specialize in extending long-term mortgage loans to members.

Finance companies

are organization (partnership or corporation) that are organized to extend credit lines to consumers and to industrial, commercial, agricultural enterprises.

Rural Bank

are privately owned, although they receive equity counterparts, loans and technical assistance from the Central Bank.

Securities brokers

are those engaged in the business of affecting transactions in securities and earn their income from commissions received.

Private insurance companies

are under the direct supervision and regulation of the Office of the Insurance Commission and are authorized to coduct life of non-life insurance business.

Microfinance banks

bank established to provide a broad range of financial services for micro enterprises.

Amanah Bank

is designed to provide banking facilities at unique and reasonable terms to the Muslim provinces of Mindanao.

Private development banks

organized primarily to cater to the capital needs and demand for investment credit on medium to long-term loans.

Lending Investors

pertain to individuals or entities engaged exclusively in the business of extending secured or unsecured direct loans to individual and enterprises.

Saving Banks

serve primarily as thrift institutions drawing funds from household and individual savers and investing such funds, together with its capital, in bonds, or in loans secured by bonds, real estate mortgages and other forms of securities.

Development Bank of the Philippines

was established mainly to provide long term industrial and agricultural credit.

Land Bank of the Philippines

was established to serve as an instrument for carrying out part of the country's land reform program.

Investment companies

which are primarily engaged in investing, reinvesting or trading in securities.