Money and Banking: Banking System Overview

Central Bank

The Central Bank of the Philippines, also known as Bangko Sentral ng Pilipinas (BSP), is responsible for formulating and implementing monetary policy in the Philippines. It is tasked with maintaining price stability, promoting economic growth, and ensuring financial stability in the country. The central bank is also responsible for regulating and supervising banks and other financial institutions in the Philippines. It also regulates foreign exchange transactions, money market operations, and the issuance of government securities.

Regulated by: Central Bank of the Philippines

Services typically offered by the central bank include:

• Monetary policy formulation and implementation
• Regulation and supervision of banks and other financial institutions
• Management of the country's foreign exchange reserves
• Issuance of currency
• Collection and dissemination of economic data and statistics

Examples: Bangko Sentral ng Pilipinas (BSP)

Commercial Banks

Commercial banks are the most common type of banks in the Philippines. They provide a wide range of financial services to individuals, businesses, and government entities. These services include deposit accounts, loans, credit cards, and other financial products. They must comply with the central bank regulations and guidelines on capital adequacy, risk management, and consumer protection.

Regulated by: Central Bank of the Philippines

Services typically offered by commercial banks include:

• Deposit accounts (savings, checking, time deposits)
• Loans (personal loans, business loans, home loans)
• Credit cards
• Foreign exchange services
• Remittance services
• Investment products (mutual funds, stocks, bonds)

Examples: BDO Unibank, Bank of the Philippine Islands (BPI), Metrobank, Philippine National Bank (PNB), Security Bank

Investment Banks

Investment banks in the Philippines provide services related to corporate finance, mergers and acquisitions, and capital market activities. They help businesses raise capital, manage risk, and grow their operations through various financial instruments. They must comply with regulations and guidelines on capital adequacy, risk management, and consumer protection.

Regulated by: Securities and Exchange Commission (SEC) and the Central Bank of the Philippines

Services typically offered by investment banks include:

• Corporate finance services (mergers and acquisitions, capital raising, financial advisory)
• Underwriting of securities
• Trading and brokerage of securities
• Asset management services
• Research and analysis

Examples: First Metro Investment Corporation, BPI Capital Corporation, SB Capital Investment Corporation

Retail Banks

Retail banks in the Philippines provide banking services to individuals and small businesses. They offer a range of financial products and services, including deposit accounts, loans, and credit cards. They must comply with the central bank regulations and guidelines on capital adequacy, risk management, and consumer protection.

Regulated by: Central Bank of the Philippines

Services typically offered by retail banks include:

• Deposit accounts (savings, checking, time deposits)
• Loans (personal loans, auto loans, home loans)
• Credit cards
• Remittance services

Examples: BDO Retail Banking, BPI Retail Banking, Metrobank Retail Banking, PNB Retail Banking

Foreign Banks

Foreign banks in the Philippines are banks that are based in other countries but have operations in the Philippines. They provide banking services to individuals, businesses, and government entities. They must comply with regulations and guidelines on capital adequacy, risk management, and consumer protection.

Regulated by: Central Bank of the Philippines and their home country's regulatory authorities

Services typically offered by foreign banks include:

• Deposit accounts (savings, checking, time deposits)
• Loans (personal loans, business loans, home loans)
• Credit cards
• Foreign exchange services
• Remittance services
• Investment products (mutual funds, stocks, bonds)

Examples: HSBC Philippines, Citibank Philippines, Standard Chartered Bank Philippines, MUFG Bank Philippines, DBS Bank Philippines

Credit Unions

Credit unions in the Philippines are financial cooperatives that are owned and controlled by their members. They provide financial services to their members, who are typically part of a specific community or industry. They must comply with Cooperative Development Authority regulations and guidelines on governance, financial management, and consumer protection.

Regulated by: Cooperative Development Authority (CDA)

Services typically offered by credit unions include:

• Deposit accounts (savings, checking, time deposits)
• Loans (personal loans, business loans, home loans)
• Credit cards
• Remittance services

Examples: First Community Cooperative, Pinoy Abroad Credit Cooperative, San Dionisio Credit Cooperative

Savings and Loan Associations

Savings and loan associations in the Philippines are financial institutions that specialize in providing loans for real estate, home construction, and home improvement. They also offer deposit accounts and other financial products. They must comply with the central bank regulations and guidelines on capital adequacy, risk management, and consumer protection.

Regulated by: Central Bank of the Philippines

Services typically offered by savings and loan associations include:

• Loans for real estate, home construction, and home improvement
• Deposit accounts (savings, checking, time deposits)
• Remittance services

Examples: Pag-IBIG Fund, Home Development Mutual Fund, ASKI Multi-Purpose Cooperative

Online Banking

Online banking in the Philippines is a service that allows customers to access their bank accounts and perform financial transactions through the internet or mobile devices. It provides a convenient and secure way to manage finances anytime and anywhere. They must comply with the central bank regulations and guidelines on electronic banking, cybersecurity, and consumer protection.

Regulated by: Central Bank of the Philippines

Services typically offered by online banking include:

• Deposit accounts (savings, checking, time deposits)
• Loans (personal loans, business loans, home loans)
• Credit cards
• Foreign exchange services
• Remittance services
• Investment products (mutual funds, stocks, bonds)
• Bill payments
• Fund transfers
• Account management

Examples: BDO Online Banking, BPI Online Banking, Metrobank Online Banking, PNB Online Banking

Other Financial Institutions

Aside from the institutions mentioned above, there are other financial institutions in the Philippines that offer deposit and loan services. These include microfinance institutions, and cooperatives.

Regulated by: Different government agencies, depending on their type and nature of operations

Services typically offered by other financial institutions include:

• Pawn loans
• Microloans
• Salary loans
• Business loans
• Deposit accounts (savings, checking, time deposits)
• Remittance services

Examples: Cebuana Lhuillier Pawnshop, Cashalo, Kiva.org, CARD MRI (Center for Agriculture and Rural Development Mutual Benefit Association)

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