Financial Institutions In The Philippines

There are several financial institutions in the country which are grouped into following category, namely: banking institutions, non-bank financial intermediaries, and non- bank thrift institutions. Each has its own functions, peculiarity and characteristics. At the helm of the country’s banking institutions is the Central Bank of the Philippines which is charged with the responsibility of the highest importance- the formulation and implementation of monetary policy designated to control and regulate money supply and volume of credit. For the attainment of its objectives, among others it superintends the operations of all banking institutions. The process and procedures used by a management to exercise financial control and financial accountability.

Commercial bank act as an underwriter of financial transactions by lending their reputation and credibility to that transactions. On the other hand investment companies offered individuals a professionally managed portfolios of securities .These entities underwrites securities on behalf of their qualified clients. It can purchase through a package product like mutual funds. In specialized government institutions, the Central Bank of the Philippines is a definite example.This institution maintains price stability of the country and control the efficient and effective payment settlement system .In brokerage firms and insurance companies, they offered services like securities, mortgages, loans, credit cards and check

SDRs are held only by the IMF member countries and by a limited number of international financial organizations. SDR holdings are held exclusively by official authorities, which are normally the central banks. Created by the IMF and allocated to member countries to supplement existing official reserves. The SDR is stable. Commercial banks accept deposits and make loans in SDRs, and it is used to price some international transactions.(b) Check /Cheque is an important negotiable instrument which can be transferred by mere hand delivery. Cheque is used to make safe and convenient payment. It is less risky and the danger of loss is minimised. First, writing personal checks to a merchant such as a local hardware store. Those checks would be shipped to the hardware store 's bank, and then to your bank, which would return the payment from your account to the hardware store 's bank. (Processing Checks, 2001),banks asks fees in issuing checks.(c) Loans, They are created when a creditor lends funds directly to a debtor (borrower) and evidenced by non-negotiable documents. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants.(d)