BANKING MEANS ACCEPTING DEPOSITS FROM PUBLIC, FOR THE PURPOSE OF LENDING, REPAYABLE ON DEMAND OR OTHERWISE WITH DRAWABLE BY CHEQUE, DRAFT, ORDER.

A PERSON WHO HAS A BANK ACCOUNT IN HIS NAME AND FOR WHOM THE BANKER UNDERTAKES TO PROVIDE THE FACILITIES AS A BANKER IS CONSIDERED TO BE A CUSTOMER.

WHEN BANKER ACCEPTS DEPOSITS FROM THE CUSTOMER THEN BANK BECOMES THE DEBTOR AND THE CUSTOMER IS THE CREDITOR. IF CUSTOMER TAKES LOANS FROM BANK THEN THE CUSTOMER BECOMES DEBTOR AND BANKS BECOMES CREDITOR .

WHEN CUSTOMER PLEDGES (PROMISES) CERTAIN ASSETS OR SECURITY WITH THE BANK IN ORDER TO GET A LOAN. IN THIS CASE, THE CUSTOMER BECOMES THE PLEDGER, AND THE BANK BECOMES THE PLEDGEE.

THE RELATIONSHIP BETWEEN BANKER AND CUSTOMER CAN BE THAT OF A LICENSOR AND LICENSEE. THIS HAPPENS WHEN THE BANKER GIVES A SALE DEPOSIT LOCKER TO THE CUSTOMER.

A TRUSTEE HOLDS PROPERTY FOR THE BENEFICIARY, AND THE PROFIT EARNED FROM THIS PROPERTY BELONGS TO THE BENEFICIARY.

IF THE CUSTOMER DEPOSITS SECURITIES OR VALUABLES WITH THE BANKER FOR SAFE CUSTODY, BANKER BECOMES A TRUSTEE OF HIS CUSTOMER.

THE CUSTOMER IS THE BENEFICIARY SO THE OWNERSHIP REMAINS WITH THE CUSTOMER.

THE RELATIONSHIP BETWEEN BANKER AND CUSTOMER CAN BE THAT OF BAILOR AND BAILEE.

BAILMENT IS A CONTRACT FOR DELIVERING GOODS BY ONE PARTY TO ANOTHER TO BE HELD IN TRUST FOR A SPECIFIC PERIOD AND RETURNED WHEN THE PURPOSE IS ENDED.

BAILOR IS THE PARTY THAT DELIVERS PROPERTY TO ANOTHER.

BAILEE IS THE PARTY TO WHOM THE PROPERTY IS DELIVERED.

WHEN A CUSTOMER GIVES A SEALED BOX TO THE BANK FOR SAFE KEEPING, THE CUSTOMER BECAME THE BAILOR, AND THE BANK BECAME THE BAILEE.

WHEN A CUSTOMER INVESTS IN SECURITIES, THE BANKER ACTS AS AN ADVISOR.

THE ADVICE CAN BE GIVEN OFFICIALLY OR UNOFFICIALLY. WHILE GIVING ADVICE THE BANKER HAS TO TAKE MAXIMUM CARE AND CAUTION.

THE BANKER ACTS AS AN AGENT OF THE CUSTOMER (PRINCIPAL) BY PROVIDING AGENCY SERVICES.

The first organized credit institutions were established in the Philippines during the 16th century Spanish colonial era. These were the OBRAS PIAS.

Obras Pias was a charitable foundation during the Spanish period. The word itself means works of piety in Spanish.

The Church directed a share of personal fortunes to its charities such as the Obras Pias.

In 1869, the opening of the Suez Canal facilitated trade between the Philippines and Europe.

By the end of the Spanish regime, the banks in existence were: El Banco Español Filipino de Isabel II (now the Bank of Philippine Islands or BPI)

The American Bank was first to open a branch in however, it was placed under receivership by the Insular Treasurer for making doubtful loans after only 3 years of operations.

In 1915, the Philippine National Bank was established with the Philippine Government as the majority stockholder.

At the turn of the 19th century, the Americans established the Guaranty Trust Corporation (GTC) and International Banking Corporation (IBC)

In 1938, the government created the Agricultural and Industrial Bank to absorb the functions of the National Loan and Investment Board and to harness government resources.

The Philippine Bank of Communications is the first bank with genuine Filipino private capital. However, it was temporarily closed at the outbreak of WWI.

The GBA prescribed rules covering the establishment of domestic banks, the licensing of foreign banks, and the powers of banking institutions, branches and agencies of foreign banks.

In 1952, the Rural Bank Act was enacted and two years later, the Agricultural and Industrial Bank merged with the Reconstruction and Rehabilitation Fund to form the Development Bank of the Philippines.

In 1918, the Manila branch of the Yokohama Specie Bank was given license to do business in the Philippines.

Central banks are the financial institutions responsible for the oversight and management of some other banks.

Individual consumers do have a direct contact with a central bank; that's why, large financial institutions work directly with the Federal Reserve Bank to provide products and services to the general public.

Traditionally, retail banks offered products to businesses while commercial banks worked directly with consumers.

Products offered at investment banks include checking and savings accounts, certificates of deposit (CDs), personal and mortgage loans, credit cards, and business banking accounts.

Digital banks are not only online platforms affiliated with traditional banks.

Credit unions serve a specific demographic per their field of membership, such as teachers or members of the military.

Individual consumers use savings and loan associations for deposit accounts, personal loans, and mortgage lending.

Investment banks do not take deposits; instead, they help individuals, businesses and governments raise capital through the issuance of securities.

Investment companies, traditionally known as mutual fund companies, pool funds from individuals and institutional investors to provide them access to the broader securities market.

Brokerage firms assist individuals and institutions in buying and selling securities among available investors.