nikki file
Post on 10-Apr-2018
231 Views
Preview:
TRANSCRIPT
8/8/2019 Nikki File
http://slidepdf.com/reader/full/nikki-file 1/6
The Philippines has a comprehensive banking
system encompassing various types of banks, from
large universal banks to small rural banks and even non-
banks. At present, there are seventeen universal banks,23 commercial banks, 84 thrift banks, 711 rural banks,
44 credit unions and twelve non-banks with quasi-banking
functions, all licensed with the Bangko Sentral ng
Pilipinas. Under Republic Act No. 8791, also known as the
General Banking Act of 2000, share roughly the same
powers.
An institution which accepts deposits, makes
business loans, and offers related services . Commercial banks also allow for a variety of deposit accounts, suchas checking , savings, and time deposit . Theseinstitutions are run to make a profit and owned by agroup of individuals, yet some may be members of the
Federal Reserve System. While commercial banks offer services to individuals, they are primarily concerned withreceiving deposits and lending to businesses.
POWERS OF A COMMERCIAL BANK
In addition to having the powers
of a thrift bank, a commercial bank has
the power to accept drafts and issue
letters of credit ; discount and
negotiate promissory notes, drafts,
bills of exchange, and other evidences
of debt ; accept or create demand
deposits; receive other types of
deposits and deposit substitutes; buy
8/8/2019 Nikki File
http://slidepdf.com/reader/full/nikki-file 2/6
and sell foreign exchange and gold or silver bullion; acquire marketable
bonds and other debt securities; and extend credit.
A system of banking where banks are
allowed to provide a variety of services to their customers. In universal banking, banks are not limited to just loans, checking and savingsaccounts, and other similar activities, but areallowed to offer investment services as well.Universal banking is less common in the United
States than in Europe.
Powers of a Universal Bank A universal bank has the same powers as acommercial bank with the following additional powers: the powers of an investment house as
8/8/2019 Nikki File
http://slidepdf.com/reader/full/nikki-file 3/6
provided in existing laws and the power to invest in non-allied enterprises.
Catering to the lower income groups,
thrift banks are primarily concerned with the mobilization of small
savings and the provision of loans at generally longer and easier
terms compared to commercial banks. Small producers such as
farmers, cottage industry entrepreneurs, and consumers rely on
these banks for financing their production and consumption
requirements. Thrift banks consist of (a) savings and mortgagebanks, (b) private development banks and (c) stock savings and
loan associations.
Powers of a Thrift Bank
A thrift bank has the power to accept savings and time deposits, act as a correspondent with other financialinstitutions and as a collection agent for government
8/8/2019 Nikki File
http://slidepdf.com/reader/full/nikki-file 4/6
entities, issue mortgages, engage in real estatetransactions and extend credit. In addition, thrift banksmay also maintain checking accounts, act as a depository for government entities and local government units and
engage in quasi-banking and money market operationssubject to the approval of the Bangko Sentral.
These are government-sponsored or
assisted banks (which are privately engaged and largelyprivately-owned) that provide credit facilities on
reasonable terms to farmers and merchants, or to
cooperatives of farmers and merchants, or in general, to
the people of the rural community. They are classified
into those with and without authority to accept demand .
Powers of a Rural Banks
Rural and cooperative banks are the more popular type of banks in the rural communities. Their role is to promote and expand the rural economy in an orderly and effective manner by
providing the people in the rural communities with basic financialservices. Rural and cooperative banks help farmers through thestages of production, from buying seedlings to marketing of their
produce. Rural banks and cooperative banks are differentiated from each other by ownership. While rural banks are privately owned and managed, cooperative banks are organized/owned by cooperatives or federation of cooperatives.
A rural bank has the power to provide adequate credit facilities tofarmers and merchants or to cooperatives of such farmers and
8/8/2019 Nikki File
http://slidepdf.com/reader/full/nikki-file 5/6
merchants and, in general, to the people of the rural communitiesof which the rural bank operates in.
Leon Guinto Memorial College, Inc.
Atimonan, Quezon
S.Y. 2010-2011
PROJECT IN
FINANCE
Submitted By:
Ana Nikki V. Columbres
I-BSA
8/8/2019 Nikki File
http://slidepdf.com/reader/full/nikki-file 6/6
Submitted To:
Mrs. Cherrie Lou A. Dedase
~ Instructor ~
top related