1st SLIDE

DEVELOPMENT OF FINANCIAL SYSTEM

2nd SLILDE

The Development of Financial Institution in the Philippines

 The financial system, which is the network of legally established institutions engaged in
mobilization, circulation and control of money and credit, facilitates the flow of funds in
economy(Chandler, 1964)
 Rodriguez Bank- fist known bank in the Philippines
 There is a Contention that the first bank in the Philippines was the Obra Prios
 Banco Español Filipino, became Banco delas Islas Filipinas or the the Bank of the Philippines
Island

3rd-4th Slide Compostion of the Banking System

 At the apex of the financial system is the Banko Sentral ng Pilipinas which is the bank issue.
 As a bank of last resort, the central bank comes to the aid of the commercial and other
banks may have need for cash.
 It is the monetary authority of the country and this includes exerting influence on the value
of peso relative to other foreign currencies.
 The Philippine has three major government banks namely, the Philippine National Bank
which is semi-public; the Land Bank, which is public and which functions as a development
bank and a commercial bank; and the Development Bank of the Philippines, which is a
development bank as its name suggest.
 Commercial Bank, Savings Bank, Thrift Bank
 Rural Banks specialize in extending loans to small scale industries and to agribusiness.
 Non-bank institutions that form part of the financial system companies, pawnshops, building
and loan associations, and credit unions.

5h Slide -6th slide The Relevance of the Financial System to Development

1. Financing of land transfer to former tenants under agrarian reform program;

2. Extension of credit to small scale industries and agribusiness ventures;
3. Accumulation of funds for investment from savers among the population
4. Facilitation of various types of transactions across distances within the country through money
transfers;
5. Facilitation of consumption spending through the automatic teller machine
6. Provision of business advisor services to prospective bank borrowers;
7. Handling of financial transfers in foreign trade
8. Participating in the promotion of saving habit among the people
9. Promoting the development of shelter programs through bank loans for housing
10. Facilitating the remittance of the earnings of overseas workers to their families by briding yhe
distance between the income earners and dependents;
11. Proving the channel for the flow of funds in the governments by acting as depositories of
government agencies;
12. Performing a part in tax collection process as acceptor of payments;
13. Acting as the channel conversion of foreign exchange in hands of the people to the domestic
currency.