WEEK 4

• Money


  To pay for purchases and store wealth
• Financial Instruments


  To transfer resources from savers to investors and to transfer risk to those best equipped to bear it.
• Financial Markets


  To buy and sell financial instruments
• Financial Institutions


  To provide access to financial markets, collect information and provide services.
• Central Banks


  To monitor financial institutions and stabilize the economy.
• Money


  anything that is widely used for making payments and accounting for debts and credits.
• Financial Instruments


  a formal obligation that entitles one party to receive payments and/or share of assets from another party.
• Financial Instruments


  are assets that can be traded, or they can also be seen as packages of capital that may be traded.
• Financial Markets


  pieces or networks where financial instruments can be sold quickly and cheaply.
• Financial Institution


  firms that provide savers and borrowers with access to financial instruments and financial markets.
• Central Bank


  A central bank is a large financial institution that handles the government's finances, regulates the supply of money and credit in the economy.
• Time

  Risk

  Information

  Markets

  Stability


  Core Principles of Financial System
• Time


  it affects the value of financial instruments.
• Risk


  refers to potential financial losses, because of unwanted events.
• Information

  is the basis for decisions

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• Market


  determine prices and allocate resources

  core of the economic system

  channelize recourses
• Stability

  improves everyone's welfare
• Private and Government banking


  category of banking institution
• Private Banking


  compromised of commercial banking such as universal banks and ordinary commercial banks.
• Government Banking


  consist of Philippine National Bank (PNB), Development Bank of the Philippines (DBP), Land Bank of the Philippines and the Philippine Amanah Bank
• Universal Bank


  may perform the functions of an IH either indirectly through a subsidiary IH
• Commercial Banking


  such as accepting drafts and issuing letters of credit
• Thrift Bank


  primarily engaged in mobilizing the small savings of the people
• The Savings and Mortgages Banks


  to receive time deposit of different types and to invest its funds in long term investment.
• The Savings and Loan Association


  may either be stock or non-stock corporations.
• The Private Development Banks


  quite different from the government instructions of the same name, it is a government entity. formerly the Rehabilitation Finance Corporations.
• Rural Banks


  extend loans and advances primarily for the purpose of meeting the normal credit of farmers
• Cooperative Banks


  primarily provide financial, banking and credit services to cooperatives and their members
• Philippine National Bank


  it operates under the provision of Executive Order number 80, the 1996 revised charter of PNB
• Philippine National Bank


  established as a government-owned banking institution on July 22, 1916 with headquarters in the old Masonic Temple along Escolta, Manila.
• Development Bank of the Philippines


  sharpens its development focus as the country's infrastructure Bank. it supports the national government's effort towards building a stronger and more resilient Philippine economy.
• Land Bank of the Philippines


  is a government financial institution that strikes a balance in fulfilling its social mandate of promoting countryside development while remaining financially viable.
• Al Amanah Islamic Investment Bank of the Philippines


  universal bank authorized to perform and provide islamic banking, financing and investment services.
• Investment House/Banks


  any enterprise which engages in the underwriting of securities of other corporations.
• Underwriting


  is the act or process of assessing and assuming financial risk.
• Credit Unions


  another type of savings' institution. it also has for its purpose the inculcation of the habit of thrift, frugality and the idea of helping one another.
• Private Insurance


  companies contribute to the country's socio-economic development as well as to the insured.
• Pawnshop


  provide credit to small borrowers who are not qualified to obtain small loans from banks.
• Trust Companies


  any corporation formed or organized for the purpose of acting as trustee or administering any trust or holding property.
• Securities Brokers / dealers 


  Pursuant to the provision of the Revised Securities Act, no broker, dealer, or salesman must engage in business in the Philippines or salesman or sell any securities, exempted under the said law