The Philippine Financial

System and International

Business Finance

History of Philippine
Banking

Obra Pias
16th century
Funded from the legacies and donation of wealthy
individual
Obras Pias profits were concentrated to the
Construction of churches
Government buildings
And other religious projects

History of Philippine
Banking
Rodriguez bank
19TH Century
Banco Espanol- Filipino de Isabel II

August 1, 1851
Bank of the Philippine Island
January 1, 1912
Monte de Piedad y Caja de Ahorros
Opened 1882

Bangko Sentral ng
Pilipinas

Is responsible for maintaining price stability

conducive to a balanced and sustainable
growth of the economy

BSP important function

The
The
The
The
The

Money Manager
supplier of Money
Bankers Bank
Supervisor of all Banks
Main Bank of the Government

Three major operating

sector

Banking Services Sector

Deparment of loans and credit

lends or extends credit to banks;
the Asset Mangement Department
takes care of the Disposition of BSP
materials assets
And International operation
department

Supervision and Examination

Sector
Supervisory

Reports and
Studies Office conducts policy
studies in connection with the
supervision and management
of banks

Resource Management Sector

RMS deputy governors care is the Security
Printing Complex which prints out paper and
mints coins and refines the gold mined in
the country.
Treasury Department manages treasury
holdings
The department of Economic Research
monitors economics statistics to draw up
the proper monetary policies

THE

PHILIPPINE
MONETARY
BOARD

OTHER

LAWS RELATD
TO PHILIPPINE
MONETARY SYSTEM

Characteristics of Philippine
Currency
Denominations
Dimension
Design and inscription
Colors
Weight

Instrument of monetary Control

Open market operations
Discount rate policy
Reserve requirements
QUALITATIVE INSTRUMENT OF MONETARY
CONTROL
Stock market credit /open market operation
Moral suasion

PHILIPPINE FINACIAL
SYSTEM
Financial institutions
Financial Markets
Financial claimss

Structure of the Philippine

Financial System

Private institution
Commercial banks
Thrift banks
Rural banks
GOVERNMENT BANKING INSTITUTION
PRIVATE NON BANKING INSTITUTION

GOVERNEMENT NON BANKING

INSTITUTION
Government Service Insurance System
Social Security System

International Business Finance

Foreign Exchange Markets

Types of participants
Importers who pay for good using foreign
currencies
Exporters who receive foreign currency and may
want to convert to domestic currency
Portfolio managers who buy or sell foreign stocks
and bonds
Foreign exchange brokers who match buy and sell
orders
Traders who make a market in foreign currencies
Speculators who try to profit from changes rates