Banking and Financial Institutions

• Types of Banks

  • Private Owned
  • Publicly Owned
• Private Owned Bank

  Said to be privately owned when organized and capitalized by private citizens for their profit. Ownership usually resides in one family
• Private Owned Banks

  • BDO
  • BPI
• Publicly Owned Bank

  Organized by the state with some private ownership, but a minimum of private ownership
• Types of Banks as to the Place of Incorporation

  • Domestic
  • Foreign
• Domestic banks are incorporated under the laws of the Philippines with majority ownership by Filipinos in conformity with the Philippine corporation code
• Foreign banks are incorporated under the laws of another country, even if they operate in the Philippines
• Types of Banks as to Structure

  • Stock Corporation
  • Non-Stock Corporation
• Stock Corporation Bank

  Organized to sell shares of stock to the general public to raise capital for profit
• Non-Stock Corporation Bank


  May be membership-based, with non-dividend bearing stocks, organized for service rather than profit or for mutual benefits
• Types of Banks as to Functions

  • Universal Bank
  • Commercial Bank
  • Thrift Bank
  • Rural Bank
  • Development Bank
• Universal Bank


  • Combines the services of a commercial bank and an investment bank, providing all services within one entity
• Commercial Bank

  • Accepts deposits, offers checking accounts, makes various loans, and provides basic financial products like certificates of deposits and savings accounts to individuals and small businesses
• Thrift Bank


  • Specializes in offering savings accounts and originating home mortgages for consumers, sometimes referred to as Savings and Loan Associations
• Rural Bank


  • Organized primarily to cater to the needs of small farmers, small businesses, small cottage industries, and cooperative associations. They receive deposits and loan out funds
• Development Bank

  • Takes care of giving loans used for development purposes
• Organized primarily to cater to the needs of small farmers, small businesses, small cottage industries, and cooperative associations. They receive deposits and loan out funds

  Rural Bank
• Takes care of giving loans used for developing the economy, engaging in medium-term lending

  Development Bank
• Organized to furnish the credit needs of duly registered operating cooperative associations of different kinds

  Cooperative Bank
• Assets government bodies and newly organized corporations to raise funds for capital through the sale of stock bezels

  Investment Bank
• A bank of Banks, supervisory & regulatory agency that oversees all banks but does not deal directly with the public


  Central Bank
• Belongs to another company, known as the parent company or holding company, which has controlling interest in the subsidiary company

  Subsidiary Bank
• Types of Banks to Management

  • Unit Bank
  • Group Banking
  • Branch Banking
  • Chain Banking
• Unit Bank is one that does banking business independent of others, with ownership concentrated on one corporation
• Group Banking is when the majority portion of the stock of two or more banks is held by a holding company
• Branch Banking is where there is a head office with more branches, and the single corporate entity provides banking services to different strategic locations
• Chain Banking is when one or more persons control the activities of banks