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• Financial system


  Keeps the economy working. The proper circulation of funds in an economy is necessary for the economic development of the country
• Financial system


  Described collectively the financial markets, participants, and the instruments and securities that are traded in the said markets
• ObrasPias


  • The first credit institution in the Philippines
  • Started by Father Juan Fernandez de Leon in 1754 and ended in 1820
• Banco Espanol Filipino de Isabela II


  • The first Philippine Bank was established in 1851
  • Banco Español-Filipino de Isabela II is now known as Bank of the Philippine Islands
  • Oldest standing bank in the Philippines and in the whole of Southeast Asia
  • Established on August 1, 1851 and named after the mother of then Spanish King Alfonso XII
• First Agricultural Bank of the Philippines

  • Established in 1906
  • In 1916 all of its assets and liabilities were transferred to the newly organized Philippine National Bank
• Components of financial system

  • Banking institution
  • Non-banking Financial Intermediaries
• Money


  A system of value that facilitates the exchange of goods in an economy
• Banking institutions


  A financial institution licensed to accepts deposits of any kind from the public and lend or invests these deposits where they make profit from
• Significance of banks


  • Act as an intermediary
  • Contribute to economic development
  • Facilitate capital formation
  • Provide services to businesses and individuals
  • Reduce use of currency
  • Mobilize savings
• Types of financial services provided by banks

  • Short-term and long-term financing
  • Personal and business loans
  • Remittance of money
  • Payment of bills
  • Conversion of currencies
• Classifications and types of banks

  • Universal and Commercial Banks (U/KBs)
  • Thrift Banks (TBs)
  • Rural Banks and Cooperative Banks (Rbs/Coop Banks)
• Universal and Commercial Banks (U/KBs)


  • Offer the widest variety of banking services
  • Authorized to engage in investment banking and industrial ventures such as real estate development
• Universal and Commercial Banks (U/KBs)

  • BDO Unibank Inc.
  • Land Bank of the Philippines
  • Metropolitan Bank & Trust Co
  • Bank of the Philippine Islands (BPI)
• Thrift Banks (TBs)


  • Specialize in gathering deposits from the public and deploying these funds into mortgage lending, consumer loans, and other financial services
  • Focus on community engagement and financial inclusion
• Thrift Banks (TBs)


  • Philippine Savings Bank (PSBank)
  • AllBank (A Thrift Bank), Inc.
  • Bangko Kabayan, Inc.
  • Bank of Makati, A Savings Bank, Inc.
  • BPI Family Savings Bank
• Rural Banks and Cooperative Banks (Rbs/Coop Banks)


  • Serve as vital financial institutions in rural communities, offering a range of banking services
  • Operate on cooperative principles, with members as both owners and customers
• Rural Banks and Cooperative Banks (Rbs/Coop Banks)


  • One Unified Rural Bank of Cavite, Inc. (OUR Bank)
  • Banco Carmona, Inc., A Rural Bank
  • Cavite Rural Banking Corporation
  • Cebuana Lhuillier Rural Bank, Inc.
  • First Integrity Bank, Inc. (Rural Bank of Bailen)
• Digital bank


  A bank which adopts digitalization of traditional banking services, processes, and activities which allows customers to conveniently access their accounts through their smart devices without the need to physically visit a bank
• Digital banking is often mistaken as online banking because both systems operate through the use of technology, but they differ in terms of accessibility and scope of services
• Digital banks in the Philippines

  • Maya Bank
  • GoTyme
  • Union Digital
• Maya Bank


  • Provides individuals with financial services including savings, deposits, and credit via technological medium
  • Regulated and supervised by Bangko Sentral ng Pilipinas (BSP)
  • Ensures up to 500,000 pesos per depositor by compliance to Philippine Deposit Insurance Corporation (PDIC)
• Target customers of Maya Bank


  • Retail Customers - without bank accounts and underserved consumers
  • MSMEs - Micro, Small, and Medium Enterprises
  • Corporate Clients
  • Investors
• Bangko Sentral ng Pilipinas (BSP)


  • The central bank of the Republic of the Philippines
  • Established on 3 July 1993 pursuant to the provisions of the 1987 Philippine Constitution and the New Central Bank Act of 1993
• Mission of BSP


  • Committed to promote and maintain price stability, with a financial system that is firm enough to have a safe, effective and efficient payments and settlements system that is conducive to a sustainable and inclusive growth of the economy
• Vision of BSP


  • Aims to be recognized globally as the monetary authority and primary financial system supervisor that supports a strong economy and promotes a high quality of life
• that, upon analysis, provides them with utmost security together with the accessible banking features and services
• Bangko Sentral ng Pilipinas

  The central bank of the Republic of the Philippines, established on 3 July 1993 pursuant to the provisions of the 1987 Philippine Constitution and the New Central Bank Act of 1993
• Bangko Sentral ng Pilipinas

  • Enjoys fiscal and administrative autonomy from the National Government in the pursuit of its mandated responsibilities
• Mission of BSP


  Committed to promote and maintain price stability, with a financial system that is firm enough to have a safe, effective and efficient payments and settlements system that is conducive to a sustainable and inclusive growth of the economy
• Vision of BSP


  Aims to be recognized globally as the monetary authority and primary financial system supervisor that supports a strong economy and promotes a high quality of life for all Filipinos
• Monetary Board


  Exercises the powers and functions of the BSP, such as the conduct of monetary policy and supervision of the financial system
• Monetary Board Members


  • Eli M. Remolona, Jr. (Chairman), Ralph G. Recto, Benjamin E. Diokno, V. Bruce J. Tolentino, Anita Linda R. Aquino, Romeo L. Bernardo, and Rosalia V. De Leon
• Powers and Duties of Monetary Board


  Issue rules and regulations, direct the management, operations, and administration of the Bangko Sentral, establish a human resource management system, adopt an annual budget, indemnify its members and other officials
• Governor


  The chief executive officer of the BSP, required to direct and supervise the operations and internal administration of the BSP
• Powers and Duties of the Governor

  Prepare the agenda for Monetary Board meetings, execute and administer the policies and measures approved by the Monetary Board, direct and supervise the operations and internal administration of the Bangko Sentral, appoint and fix the remunerations of personnel below the rank of a department head, render opinions, decisions, or rulings, exercise other powers vested by the Monetary Board
• Deputy Governor


  Heads each of the BSP's operating sectors
• BSP Operating Sectors


  • Monetary and Economics Sector, Financial Supervision Sector, Corporate Services Sector, Payments and Currency Management Sector, Regional Operations and Advocacy Sector
• Monetary and Economics Sector


  Mainly responsible for the operations/activities related to monetary policy formulation, implementation, and assessment
• Financial Supervision Sector


  Mainly responsible for the regulation of banks and other BSP-supervised financial institutions, as well as the oversight and supervision of financial technology and payment systems
• Anti-money laundering regulation


  Money laundering is committed by any person who, knowing that any monetary instrument or property represents, involves, or relates to the proceeds of any unlawful activity