history of philippine banking ( and kinds of checks )

History of Philippine Banking

Obras PiasA charity foundation by laymen used for charityworks and religious activities. It became abanking institution run by the friars.

Rodriguez Bank

• One of the first banks to emerge in the 19th

century. It was more of a loan association than a modern bank.

British-Orient Bank

• Expanded the Philippine-European trade following the opening of the Suez Canal.

Suez Canal

HSBC

• Established its branch in Manila in 1872.

Monte de Piedad

• First mutual savings established in 1882

• A Spanish Franciscan friar Felix Huertas was the prime mover in convincing the Archbishop of Manila and the Governor-General to establish a bank especially for the poor.

• The original name in Spanish was Monte de Piedad y Caja de Ahorros.

• It was bank and a pawnshop.

• 1994 closed and re-opened as Keppel Bank

• 2005 bought and renamed by GE

• Established 1851, it was the first state bank.

• It was renamed Bank of the Philippine Island in 1912

Banco Espanol-Filipinas de Isabel II

BPI issued first paper notes

Philippine National Bank

• First agricultural bank, established in 1916

• PNB has also functioned as the de facto Central Bank of the Philippines until 1949. It was given the special power to issue circulating notes

• The first universal bank in the Philippines (1980)

Bangko Sentral Ng Pilipinas

• Established in 1949

Notes on the BSP• The BSP actually started out as the Central bank of the Philippines established in January 3,

1949 as the Philippines’ Central Monetary Authority.

• In accordance with the pursuant of the 1987 constitution, the Central Bank of the Philippineswas re-chartered in July 3, 1993 and was renamed as the Bangko Sentral ng Pilipinas.

• The BSP’s primary objective is to maintain price stability, financial stability and economicstability.

• Main functions of the BSP:

1. Liquidity management. The BSP is responsible for liquidity management by formulatingand implementing monetary policy aimed to influence the supply of money. The BSP maydecide to contract or expand the economy. Consistent with its primary objective the BSPstands on its three pillars: price stability, financial stability, and economic stability.

2. Lender of last resort. The BSP is also the lender of last resort to banks facing bankruptcy.

3. Currency Issue. The BSP has the exclusive power to issue the national currency.

4. Financial Supervision. The BSP supervises banks and exercises regulatory powers over non-bank institutions performing quasi-banking functions.

• The current BSP is headed by the BSP Governor Mr. Amando M. Tetangco Jr.

Functions of a Commercial Bank

• Collection function

• Paying function

• Loaning function

• Receiving function

• Trust

Kinds of Deposits

• As to source:

• A. Private

• B. Government

• As to withdrawals:

• A. Demand deposit

• B. Savings deposit

• C. Time deposit

Kinds of Accounts

• Individual account

• Survivorship account

• Joint account

• Partnership or Corporation account

Checks• A written order to a bank from the depositor

to pay the bearer an amount of money.

Open Check

• Pay to Order

• Pay to Bearer

• Crossed Check

• Certified Check

• Manager’s Check

• Traveler’s Check

• Overdraft Check

• DAIF

• DAUD

• Bouncing Check

• Stale-dated Check

• Post-dated Check

Write me as check

Uses of a Check

• Safety and convenience• Stop Payment

• For odd amounts• As a receipt• For large amounts