Business Finance 2

Regulates the operations of financial institutions and financial intermediaries (BSP)

• Bangko Sentral ng Pilipinas

• Bangko Supremo ng Pilipinas

• Bureau Sentral ng Pilipinas

• Bureau Sentral ng Pilipinas

Basic Elements of a Financial System

• Financial institutions

• Financial Markets

• Financial instruments

• Lenders and Borrowers

Are institution or organizations that provide financial services, among others, in the form of loan, fund administration, financing, depository and safekeeping.

• Financial Institutions

• Financial Markets

• Financial instruments

• Lenders and borrowers

Are financial Institutions that accepts deposits (savings, current, and time deposits) from individuals and corporate entities, extend loans to borrowers, transfer funds and manage funds for investment purposes.

• Depository Institutions

• Financial Intermediaries

• Investment Institutions

• Financial Markets

Are institution authorized to operate and regulated by BSP under the General banking law of 2000

• Banks

• Savings and loan association

• Trust Companies

• Credit Unions

They accept deposits and bills payment, provide loans and facilitate the transfer of funds domestically or abroad

• Banks

• Savings and loan association

• Trust Companies

• Credit Unions

Universal Bank

• Considered as the biggest bank in terms of assets, loan portfolio and revenue

• It has the widest scope of banking activities authorized by BSP and usually has the most number of branches nationwide and abroad

• The minimum capital requirements of a UB with more than 100 is set by the BSP at 29B PHP in compliance in BASEL III requirements

• Involved in underwriting activities

• Engaged in financial activities of investment houses, invest in equities of non-banking institutions

Provides commercial loans and offers investment products in addition to the regular banking service of accepting deposits

• Universal Bank

• Commercial Bank

• Thrift Bank

• Rural Bank

Includes savings and mortgage banks, private development banks, and stock savings, loan associations, and micro-finance thrift banks

• Universal Bank

• Commercial Bank

• Thrift Bank

• Rural Bank

These are organized and operating in rural areas, they are intended to promote and expand rural economy by providing people with basic financial services

• Universal Bank

• Commercial Bank

• Thrift Bank

• Rural Bank and Cooperative Bank