Bank and Non-bank Financial Institutions in the Philippines, Lecture notes of Financial Market

Download Bank and Non-bank Financial Institutions in the Philippines and more Lecture notes Financial Market in PDF only on Docsity! FINANCIAL MARKETS I. BANKING INSTITUTIONS 1. PRIVATE BANKING INSTITUTIONS a. Bank of the Philippine Islands (BPI) - A universal bank and together with its subsidiaries and affiliates, it offers a wide range of financial products and solutions that serve both retail and corporate clients. - Services include consumer banking and lending, asset management, payments, insurance, securities brokerage and distribution, foreign exchange, leasing, and corporate and investment banking. b. Banco De Oro (BDO) - The firm is a full-service universal bank. It provides products and services to the retail and corporate markets including lending (corporate, middle market, SME, and consumer),deposit-taking, foreign exchange, brokering, trust and investments, credit cards, corporate cash management and remittances. Through its subsidiaries, the bank offers leasing and financing, investment banking, private banking, bancassurance, insurance brokerage and stockbrokerage services. c. Philippine National Bank (PNB) - Country’s first universal bank, is the fourth largest privately-owned Philippine commercial bank - Was established as a government-owned banking institution on July 22, 1916 to provide financial services to Philippine industry and agriculture and support the government’s economic development effort. - Privatization of the bank - In 1999, a group of new private stockholders led by Dr. Lucio C. Tan acquired approximately 35% of the total outstanding capital stock of PNB.  In early 2000, the group increased its share in the Bank to 69.32%. - Maintains its leadership in the overseas remittance business with remittance centers in the United States, Canada, London, France, Italy, Hong Kong, Japan, Singapore and the Middle East countries. - Commercial banking activities include deposit-taking, lending, bills discounting, trade finance, foreign exchange dealings, fund transfers, remittance servicing, asset management, a full range of retail banking and trust services, and treasury operations. - Also engages in a number of diversified financial and related businesses such as investment banking, non-life insurance, stock brokerage, leasing and financing and foreign exchange trading.  The Bank, through its affiliate, is also engaged in other services such as life insurance. d. Metropolitan Bank and Trust Company (Metrobank) - The second largest bank in the Philippines and is a premier universal bank. - It is the commercial and retail banking arm of GT Capital Holdings Inc. - Offers a full range of banking and other financial products and services, including corporate, commercial and consumer banking, as well as credit card, remittances, leasing, investment banking and trust banking.  e. Rizal Commercial Banking Corporation (RCBC) - It is among the largest private domestic banks in the country in terms of assets. - Has been a pillar of the banking industry, providing a wide range of financial services to its customers through its retail and investment bank, microfinance unit, foreign exchange brokerage house, leasing company and overseas remittance tie-ups. 2. PUBLIC/ GOVERNMENT-OWNED BANKING INSTITUTIONS a. Land Bank of the Philippines (Landbank) - A government financial institution that strikes a balance in fulfilling its social mandate of promoting countryside development while remaining financially viable. - The profits derived from its commercial banking operations are used to finance the Bank's developmental programs and initiatives. - Continued expansion of its loan portfolio in favor of its priority sectors: the small farmers and fishers, a good part of which are agrarian reform beneficiaries; micro and SMEs; agri- and aqua-projects of local government units and government-owned and controlled corporations; communications, transportation, housing, education, health care, environment-related projects, tourism, and utilities. b. Development Bank of the Philippines (DBP) - Classified as a development bank and may perform all other functions of a thrift bank. - Provide banking services principally to cater to the medium and long- term needs of agricultural and industrial enterprises with emphasis on small and medium-scale industries. - More aggressively supports infrastructure development and inclusive growth; directed at laying the infrastructure for growth in priority sectors, namely: transportation and logistics, environment, social services and community development, and small and medium enterprises. - Accelerated lending is also channeled to the public sector, principally Local Government Units, Water Districts and Electric Cooperatives. c. Al-Amanah Islamic Investment Bank of the Philippines - Owned and controlled by the Development Bank of the Philippines - Only bank authorized to operate under Islamic banking concepts retirement benefits, and disability benefits for work-related accidents and death benefits - Also manages the General Insurance Fund for the comprehensive protection to government insurable interests b. Social Security System - It is the policy of the State to establish, develop, promote and perfect a sound and viable tax-exempt social security system suitable to the needs of the people throughout the Philippines, which shall promote social justice and provide meaningful protection to members and their beneficiaries against the hazards of disability, sickness, maternity, old age, death and other contingencies resulting in loss of income or financial burden. c. National Home Mortgage Finance Corporation (NHMFC) - Mandate of increasing the availability of affordable housing loans to finance the Filipino homebuyers on their acquisition of housing units through the development and operation of a secondary market for home mortgages. - Continuously seeking ways to continue to cater to the housing needs of the low-income and underserved sectors of the society. - Socialized Housing Loan Takeout of Receivables (SHeLTeR) program aims to purchase socialized housing loan receivables from socialized housing developers as well as microfinance institutions, cooperatives, LGUs, national government agencies and civic organizations. Offers more affordable terms as it targets the socialized housing market. - MAginhawang BUhay dahil sa baHAY (MABUHAY) program address the needs of the senior members of our community. It allows Senior Citizens to convert a portion of their home equity into cash in order to address their various needs. d. Philippine Veterans Investment Development Corporation (PHIVIDEC) - To direct and look after the productive and investment possibilities coming from the large number of veterans and retirees of the Armed Forces of the Philippines (Presidential Decree No. 234 dated July 13, 1973). e. National Development Corporation (NDC) - Was mandated to function as the government’s investment arm. - Has developed, financed and implemented pioneering projects vital to the sustainability of the government’s structural reforms and economic policies. - Mandated to pursue commercial, industrial, agricultural or mining ventures in order to give the necessary impetus to national economic development - May on its own, or in joint venture with the private sector, undertake vital projects when necessary or when the private sector is not willing or able to undertake such projects due to high risks or to lack of funds/resources.