BY: KHARLA LOUISE S.

BAUTISTA DEMOCRACY, PEOPLE

18-MPMG-036
AND GOVERNANCE
WHAT IS DEMOCRACY

GREEK WORD “DEMOS” WHICH “KRATOS” MEANS RULE “DEMOKRATIA” RULE BY PEOPLE IT IS A POLITICAL SYSTEM IN WHICH
MEANS PEOPLE GOVERNMENT IS FORMED BY THE
PEOPLE, EXERCISED EITHER
DIRECTLY OR THROUGH ELECTED
REPRESENTATIVES.
PRINCIPLES OF DEMOCRACY

 FREE ELECTIONS ARE USED TO SELECT REPRESENTATIVES OF THE

PEOPLE
 THE POWER OF THE GOVERNMENT ARE BASED ON THE
CONSENT OF THE GOVERNED
 RULE OF LAW GUARANTEES RIGHTS AND FREEDOM. FREEDOM
TO LIVE OR TRAVEL ANYWHERE IN THE COUNTRY, FREEDOM TO
WORK AT ANY JOB FOR WHICH ONE QUALIFIES, FREEDOM TO
MARRY AND RAISE A FAMILY, FREEDOM TO RECEIVE FREE
EDUCATION IN PUBLIC SCHOOLS, FREEDOM TO JOIN A
POLITICAL PARTY, UNION AND OTHER LEGAL GROUP.
CHARACTERISTICS OF DEMOCRACY

CITIZEN RULE - A DEMOCRATIC GOVERNMENT GRANTS ADULT CITIZENS THE

RIGHT TO ELECT THEIR REPRESENTATIVES. IT ALSO ESTABLISHES
CLEAR GUIDELINES FOR ELECTION CYCLES AND TERM LIMITS SO
THAT THE KEY POSITIONS ARE CONTESTED AT REGULAR
INTERVALS. THROUGH THIS PROCESS OF VOTING, CITIZENS ARE
REGULARLY GIVEN THE ABILITY TO HIRE OR TO FIRE THEIR
REPRESENTATIVES
2. MAJORITY RULE AND - THE PRINCIPLE OF
MINORITY RIGHTS MAJORITY RULE IS AN
IMPORTANT PART IN THE
DEMOCRACY SYSTEM.
THE MAJORITY RULES IN
ELECTION PROCESS, BUT
INDIVIDUAL RIGHTS ARE
PROTECTED BY THE
MAINTENANCE OF
DECENTRALIZED, LOCAL
GOVERNMENT BODIES. IN
DEMOCRACY, IT IS
UNDERSTOOD THAT ALL
LEVELS OF GOVERNMENT
SHOULD BE ACCESIBLE
TO AND,
REPRESENTATIVE OF
PEOPLE.
3. INDIVIDUAL RIGHTS - DEMOCRACIES VALUE THE PROTECTION OF INDIVIDUAL RIGHTS.
THESE RIGHTS SUCH AS FREEDOM OF RELIGION AND EQUAL
PROTECTION UNDER THE LAW ARE SUCH IMPORTANT PART OF
DEMOCRACY THAT THE TERM “FREEDOM” IS OFTEN ASSOCIATED
WITH THE TERM “DEMOCRACY”
4. FREE AND FAIR ELECTIONS - THE KEY TO EXERCISE DEMOCRACY IS THE ELECTION PROCESS.
FREE AND FAIR ELECTIONS ARE HELD AT A REGULAR INTERVALS
FOR ELECTIONS OF REPRESENTATIVES AT ALL LEVELS OF
GOVERNMENT. DEMOCRATIC ELECTION, AS ADULT CITIZEN ARE
GIVEN THE RIGHT TO CAST VOTE- ENSURING THAT THE WILL OF
THE PEOPLE WILL BE EXPRESSED.
5. CITIZEN PARTICIPATION - CITIZENS OF DEMOCRACY DOES NOT ONLY HAVE THE RIGHT TO
VOTE, BUT ALSO THE RESPONSIBILITY TO PARTICIPATE. INFORMED
PARTICIPATION IS THE KEY IN DEMOCRACY. HAVING THE RIGHT
TO VOTE AND EXPRESS THEMSELVES, THOSE LIVING IN A
DEMOCRATIC SOCIETY ARE CALLED UPON TO ACT AS GUARDIANS
OF THEIR OWN FREEDOM.
6. COOPERATION AND COMPROMISE - DEMOCRACIES ALSO VALUE COOPERATION AND
COMPROMISE TO PROTECT INDIVIDUAL RIGHTS. TO
ADEQUATELY SAFEGUARD DIVERSITY AND
ACCURATELY REPRESENT ALL COMMUNITIES,
DEMOCRACY MUST PROTECT THE RIGHT TO BE
DIFFERENT
TYPES OF DEMOCRACY

 DIRECT DEMOCRACY
- IT IS A POLITICAL SET UP WHERE THE
PEOPLE THEMSELVES MAKES THE LAWS AND
PARLIAMENT DIRECTLY IN THE
FUNCTIONING OF THE GOVERNMENT.
DECISIONS ARE TAKEN ON THE BASE OF THE
MAJORITY OF OPINION.
 IT IS THE SYTEM IN WHICH THE
REPRESENTATIVES ARE ELECTED
REPRESENTATIVE DEMOCRACY
BY THE PEOPLE AND THEY ACT
ON BEHALF OF THE PEOPLE.

PARLIAMENTARY DEMOCRACY PRESIDENTIAL DEMOCRACY

  THE EXECUTIVE BRANCH DERIVES ITS DEMOCRATIC
PARLIAMENTARY LEGITIMACY ONLY FROM THE LEGISLATURE. I.E, THE
PARLIAMENT. THE HEAD OF STATE IS DIFFERENT
DEMOCRACY FROM THE HEAD OF GOVERNMENT AND BOTH
HAVE VARYING DEGREES OF POWER
  THE PRESIDENT OF A STATE HAS A SIGNIFICANT
PRESIDENTIAL AMOUNT OF POWER OVER THE GOVERNMENT.
HE/SHE IS INDIRECTLY ELECTED BY CITIZENS OF THE
DEMOCRACY STATE.
  IT GIVES THE PEOPLE THE RIGHT TO VOTE
 IT IS OPEN FOR CHANGE
 IT OFFERS REPRESENTATION TO PEOPLE
 IT GETS THE PEOPLE INVOLVED
 IT PROMOTES EQUALITY

MERITS OF  IT ALLOWS PEOPLE TO VOICE OUT THEIR ISSUES

DEMOCRACY
  IT CAN LEAD TO CORRUPTION FOR IT IS BASED ON
ELECTORAL COMPETITION.
 IT CAN LEAD TO WRONG CHOICES WHEN IT COMES

DEMERITS OF TO GOVERNMENT LEADERS

 IT MAKES VOTING A PERSONAL CHOICE
DEMOCRACY  IT TAKES TIME TO MAKE DECISIONS
 IT FAVORS THE MAJORITY
OTHER FORMS OF GOVERNMENT

1 2 3 4
MONARCHY TOTALITARIAN COMMUNIST OLIGARCHY
MONARCHY

RULED BY A SINGLE CONSTITUTIONAL MOST

PERSON, WHO IS THE MONARCHIES ARE CONSTITUTIONAL
PERMANENT HEAD OF MORE COMMON MONARCHIES USE A
THE STATE. THE TERM IS TODAY. UNDER THIS PARLIAMENTARY
NOW USED TO REFER SYSTEM, THE POWERS SYSTEM IN WHICH THE
TO COUNTRIES WITH OF THE KING OR KING OR QUEEN MAY
HEREDITARY RULERS. QUEEN ARE RESTRICTED HAVE STRICTLY
THIS MEANS THAT THE TO THOSE GRANTED IN CEREMONIAL DUTIES.
RULE IS PASSED DOWN THE CONSTITUTION. THEY OFTEN HAVE AN
FROM PARENT TO ELECTED PRIME
CHILD MINISTER WHO IS THE
HEAD OF THE
GOVERNMENT.
  THE GOVERNMENT IS UNDER THE CONTROL OF ONE
TOTALITARIAN PERSON
 TAKES POWER BY FORCE RATHER THAN INHERITING POWER
 OFTEN WERE MEMBERS OF POLICE OR MILITARY
 NO LIMITS ON POWER
 POLITICAL SYSTEM DOMINATES RELIGION, FAMILY LIFE,
ECONOMY AND EDUCATION.
COMMUNIST

ALL PROPERTY IS EACH PERSON IS PAID ALL IS WORKING FOR

PUBLICLY OWNED BASED ON THEIR THE GOOD OF THE
NEEDS, NOT THEIR OVERALL COUNTRY.
ABILITIES
THEOCRACY

 GOVERNMENT LEADERS ARE MEMBERS OF THE CLERGY.

 THE STATE’S LEGAL SYSTEM IS BASED ON RELIGIOUS LAWS
 RULERS ARE THOUGHT TO BE “DIVINELY GUIDED”
WHAT IS FISCAL ADMINISTRATION

 IT IS THE ACT OF MANAGING INCOMING AND OUTGOING

MONETARY TRANSACTIONS AND BUDGETS FOR
GOVERNMENTS, EDUCATIONAL INSTITUTIONS, NON-PROFIT
ORGANIZATIONS AND OTHER PUBLIC SERVICE ENTITIES.
IT INCLUDES SYSTEMS STRUCTURES

PROCESSES OFFICIALS AND POLICY ENVIRONMENT

PERSONNELS GOVERNING
INTERGOVERNMENTAL
AND LOCAL FISCAL
RELATIONS
FISCAL ADMINISTRATION ZEROS IN ON THE MANAGEMENT OF FINANCIAL RESOURCES AND
THOSE ACTIVITIES AND OPERATIONS TO GENERATE REVENUE, MAKE THOSE AVAILABLE AND
SEE TO IT THAT FUNDS ARE WISELY, LAWFULLY, EFFECTIVELY AND EFFICIENTLY SPENT.

THE ADMINISTRATION OF FINANCES IS AN INTRINSIC COMPONENT OF MANAGEMENT

RESPONSIBILITY. THERE IS AN INTIMATE LINKAGE BETWEEN ADMINISTERING AND FUNDING.

TO IMPLEMENT SOCIAL AMELIORATION PROGRAM CREATES A CHARGE ON REVENUE

EARNED WHILE AT THE SAME TIME DISTRIBUTES AND DISPERSES SOCIAL BENEFITS
FISCAL ADMINISTRATION IS PRESENT IN ALL LEVELS OF THE ORGANIZATION
WHETHER LINE OR STAFF, TOP MANAGEMENT OR RANK AND FILE.

TOP MANAGEMENT IS MOST INTERESTED IN IT, THE MIDDLE MANAGEMENT IS

DEEPLY INVOLVED IN IT, AND THE RANK AND FILE IS AFFECTED BY WHATEVER
RESULTS FROM IT.
 CONGRESS
DEPARTMENT
(LOWER
HOUSE)
OF FINANCE PRINCIPAL
AGENCIES
TASKED WITH
DEPARTMENT
FISCAL
OF BUDGET COMMISSION FUNCTIONS
AND ON AUDIT
MANAGEMENT
CONGRESS (LOWER HOUSE)

RESPONSIBLE FOR REVENUE AND EXPENDITURE POLICIES

PROVIDES THE LEGAL FRAMEWORK FOR THE IMPLEMENTATION

OF FISCAL POLICIES
DEPARTMENT OF FINANCE

 REVENUE GENERATION AND COLLECTION

 FUND CUSTODY
 DISBURSEMENT
 KEEPING OF ACCOUNTS
DEPARTMENT OF BUDGET AND MANAGEMENT

 REVIEW OF ESTIMATES AND FISCAL POLICY STUDIES IN CLOSE CONSULTATION WITH THE NATIONAL
ECONOMIC DEVELOPMENT AUTHORITY
 PREPARES THE MEDIUM TERM EXPENDITURE PLAN, INDICATING PRIORITIZATION, PROGRAMMING
AND FINANCING OF CAPITAL INVESTMENTS AND CURRENT OPERATING EXPENDITURE
REQUIREMENTS OF MEDIUM-TERM SECTORAL DEVELOPMENT PLANS.
 UNDERTAKES THE FORMULATION OF THE ANNUAL NATIONAL BUDGET IN A WAY THAT ENSURES THE
APPROPRIATE PRIORITIZATION AND ALLOCATION OF FUNDS TO SUPPORT THE ANNUAL PROGRAM
OF THE GOVERNMENT.
COMMISSION ON AUDIT

 CONDUCTS FUNDS AND PERFORMANCE AUDIT TO SEE TO IT THAT EXPENDITURES ARE IN

ACCORDANCE WITH THE APPROPRIATION LAW APPROVED
FISCAL CONTROL MECHANISMS

FOUR JUSTIFICATION FOR EXPENDITURE CONTROL THROUGH THE BUDGET:

 PREVENT MISAPPROPRIATION OF FUNDS

 CONTROL TO IMPLEMENT PROSPECTIVE POLICY
 ENSURE THE WISDOM AND PROPRIETY OF EXPENDITURE
 PREVENT DEFICITS
BUDGETING CONCEPTS

 PLANNING – PROGRAMMING BUDGET SYSTEM TYPE

 ZERO-BASED BUDGETING
PLANNING

 GIVES ASSURANCE THAT THE BUDGET WILL HELP ACHIEVE DESIRED AGENCY RESULTS
 UNIT HEAD DEFENDS THE BUDGET, EXPLAINS ITS CONTRIBUTION TO THE REALIZATION OF AGENCY
GOALS, DEVELOPS A COST PROJECTION FOR EACH YEAR.
 SUBMITS THIS TO TOP MANAGEMENT WHICH REVIEWS THE PROGRAM AND DECIDES ON FINAL
BUDGET ALLOCATION.
ZERO-BASED BUDGETING

 THE AGENCY JUSTIFIES THE ENTIRE APPROPRIATION REQUEST FOR THE FISCAL YEAR AS IF THE
PROGRAMS ARE ENTIRELY NEW, INSTEAD OF JUSTIFYING ONLY THE INCREASE REQUESTED ABOVE THE
PREVIOUS YEARS APPROPRIATION.
 THE AGENCY IS OBLIGATED TO DEFEND ALL PROGRAMS EVERY YEAR AND RANK THESE IN TERMS OF
PRIORITY USING THE RATIO BETWEEN THE CAUSE AND BENEFIT CRITERION.
 PROVIDES OPPORTUNITY FOR TOP MANAGEMENT TO RE-EVALUATE THE NEED FOR ON-GOING
PROGRAMS, COMPARE THESE WITH THE PROPOSED AND THE PRIORITIZED FOR IMPLEMENTATION.
LINE ITEM VS PERFORMANCE BUDGETING

 OBJECT OF THE EXPENDITURE TYPE

 CONSISTS OF DETAILED LISTINGS OF EVERY POSITION TO BE FILLED
 GIVES THE LEGISLATIVE BODY TREMENDOUS DISCRETION TO STRIKE OUT OR TO APPROVE
INDIVIDUAL ITEMS
 FUNDS APPROPRIATED MAY NOT BE TRANSFERRED FROM ONE CATEGORY OF EXPENSE TO ANOTHER
 ALSO KNOWN AS THE “RULE OF THUMB” BUDGETING WHERE FIGURES OF PAST YEARS ARE
REFLECTED BUT WITHOUT INCOME INDICATORS.
THREE COLUMNS OF FIGURE APPEAR IN EACH BUDGET SHEET

 ACTUAL EXPENDITURE OF EACH OBJECT DURING THE PREVIOUS FISCAL YEAR

 ESTIMATED AMOUNTS TO BE SPENT FOR THE SAME OBJECTS FOR THE CURRENT FISCAL YEAR
 AMOUNT DESIRED FOR THE SAME OBJECTS FOR THE INCOMING OR FUTURE FISCAL YEAR.
PERFORMANCE BUDGETING

- LUMP SUM BUDGETING

- PROGRAM BUDGETIING WHICH SPELLS OUT FUNCTIONS, ACTIVITIES AND PROJECTS.
- ALLOW TRANSFER OF FUNDS FROM ONE ORGANIZATIONAL UNIT TO ANOTHER, BETWEEN WORK
ACTIVITIES AND OBJECTS TO SPENT FOR.
- THERE IS DIFFICULTY IN IDENTIFYING WHAT WORK UNITS PERFORM OR NOT PERFORM, SINCE ITS
MOST IMPORTANT CONCERN IS THE OVERALL PERFORMANCE OF THE AGENCY.
POLICY GUIDELINES FOR BUDGETING

 THE FORMULATION OF THE NATIONAL BUDGET MUST BE IN THE CONTEXT OF A THREE YEAR
PLANNING
 EXPENDITURES MUST ACHIEVE PROGRAM TARGETS AND SUPPORT DEVELOPMENT STRATEGY.
AGENCY PROGRAMS WILL BE SUPPORTIVE OF THE IDENTIFIED
PRIORITY AREAS WHICH INCLUDES:

 MODERNIZATION OF THE AAGRICULTURAL SECTOR TO AUGMENT FARMER INCOME, BOLSTER

PRODUCTION AND ATTAIN FOOD SECURITY.
 IMPROVEMENT OF THE QUALITY OF BASIC SOCIAL SERVICES LIKE HEALTH AND SANITATION,
NUTRITION, EDUCATION, SOCIAL WELFARE, AND HOUSING
 ACCELERATION OF COUNTRYSIDE INFRASTRACTURE DEVELOPENT
 ENHANCEMENT OF GLOBAL COMPETITIVENESS THROUGH LIBERALIZATION, DEREGULATION AND
PRIVATIZATION.
PRINCIPLES FOR AGENCY GUIDANCE

 PRUDENT SPENDING
 ENTREPRENEURIAL BUDGETING
 PERFORMANCE BASED-BUDGETING
 WHOLISTIC BUDGETING
 CONSISTENCY WITH SUB-SECTORAL DEVELOPMENT OBJECTIVES
FISCAL POLICIES

 PROGRAMS OF ACTION INVOLVING THE SYSTEM OF GOVERNMENT EXPENDITURES AND REVENUE

ADMINISTRATION
 DESIGNED TO EFFECTIVELY MANAGE ALL FINANCIAL RESOURCES AS TO BUDGETING, REVENUE
COLLECTION, ACCOUNTING AND THEN SYSTEMIZING ALL PROCESSES TO RELATE FOR THE
DEVELOPMENT GOALS OF THE PUBLIC SECTOR.
INCOME SOURCES

 TAX REVENUE
- INCOME TAX, PROPERTY TAX, DOMESTIC GOODS AND SERVICES TAX, VALUE ADDED TAX
- TWO COLLECTING AGENCIES : BUREAU OF INTERNAL REVENUE, BUREAU OF CUSTOMS
 NON-TAX REVENUE
- OPERATING AND SERVICE INCOME
- INCOME FROM PUBLIC ENTERPRISES AND INVESTMENTS
- MISCELLANEOUS INCOME
- CAPITAL REVENUE
APPROPRIATIONS

 NEW GENERAL APPROPRIATIONS

 SUPPLEMENTAL APPROPRIATIONS
 CONTINUING APPROPRIATIONS
 SPECIAL APPROPRIATIONS
NATIONAL BUDGET SYSTEM

 TWO PRINCIPAL OBJECTIVES OF THE CURRENT BUDGET SYSTEM

- TO CARRY ON ALL GOVERNMENT ACTIVITIES UNDER A COMPREHENSIVE FISCAL PLAN DEVELOPED,
AUTHORIZED, AND EXECUTED IN ACCORDANCE WITH THE CONSTITUTION, PREVAILING STATUS AND
PRINCIPLES OF SOUND PUBLIC.
- TO PROVIDE FOR A PERIODIC REVIEW AND DISCLOSURE OF THE BUDGETARY STATUSOF THE
GOVERNMENT IN SUCH DETAIL THAT OFFICIALS ENTRUSTED BY LAW WITH THE RESPONSIBILITY OF THE
FINANCIAL POSITION OF THE GOVERNMENT.
EVOLUTION OF PHILIPPINE FINANCIAL SYSTEM
WHAT IS FINANCIAL SYSTEM

 IT IS A NETWORK OF VARIOUS INSTITUTIONS, TOGETHER WITH THE GOVERNMENT AGENCIES, LAWS,

AND POLICIES WHICH GENERATES, CIRCULATES AND CONTROLS MONEY AND CREDIT.
 IT SERVES AS A CATALYST IN THE COUNTRY’S GROWTH AND DEVELOPMENT. IT IS THE CUSTODIAN OF
THE COUNTRY’S LIQUID RESERVES AND BASED ESSENTIALLY ON TRUST AND CONFIDENCE OF THE
PUBLIC.
 IT IS COMPOSED OF BANKING INSTITUTIONS AND NON BANK FINANCIAL INTERMEDIARIES,
INCLUDING COMMERCIAL BANKS, SPECIALIZED GOVERNMENT BANKS, THRIFT BANKS AND RURAL
BANKS.
 IT IS ALSO COMPOSED OF OFFSHORE BANKING UNITS, BUILDING AND LOAN ASSOCIATIONS,
INVESTMENT AND BROKERAGE HOUSES AND FINANCE COMPANIES.
SPANISH PERIOD

 OBRAS PIAS WAS ESTABLISHED AND REPRESENTED THE FIRST ORGANIZED FINANCIAL INSTITUTION
IN THE PHILIPPINES.
 AUGUST 2, 1882 – THE FIRST SAVINGS BANK IN THE COUNTRY WAS FOUNDED BY FATHER FELIX
HUERTAS AND NAMED “ MONTE DI PIEDAD Y CAJA DE AHORROS DE MANILA”
 IN 1869, OPENING OF SUEZ CANAL FACILITATED THE TRADE BETWEEN PHILIPPINES AND EUROPE.
 1898- THE END OF SPANISH REGIME, BANKS IN EXISTENCE WERE EL BANCO ESPANOL FILIPINO DE
ISABEL II, CHARTERED BANK OF INDIA, MONTE DE PIADAD AND BANCO PENINSULAR ULTRAMARINO
DE MADRID
PESOS
FUERTES
AMERICAN PERIOD

 POSTAL SAVINGS BANK WAS CREATED AS A DIVISION OF THE BUREAU OF POSTS.

 AMERICAN BANK WAS ESTABLISHED IN 1901 AND OPERATED FOR FOUR YEARS
 ACT NO. 2612 – FUNDS WERE TRANSFERRED TO PHILIPPINE NATIONAL BANK
JAPANESE OCCUPAATION

THE ENTRY OF JAPANESE IMPERIAL FORCES IN MANILA THE SOUTHERN DEVELOPMENT BANK (NAMPO
ON JANUARY 2, 1942. KAIHATSU KINDO) OPENED A BRANCH IN MANILA IN
1942 AND ACTED AS FISCAL AGENT OF THE JAPANESE
GOVERNMENT IN THE PHILIPPINES
POST WAR AND INDEPENDENCE PERIOD

 REHABILITATION FINANCE CORPORATION WAS ORGANIZED PRIMARILY TO PROVIDE FINANCIAL AND

IN THE REHABILITATION OF THE COUNTRY
 ESTABLISHMENT OF THE CENTRAL BANK OF THE PHILIPPINES
THE SEVENTIES: THE NEW SOCIETY PERIOD

 THE LATTER PART OF 1972 HIGHLIGHTED THE GROWING DEMANDS UPON THE BANKING SYSTEM
WHEN THE CONSTITUTION OF THE NEW SOCIETY CALLED FOR CONSTRUCTIVE REFORMS AND
REORIENTATION OF THE PHILIPPINE POLITICAL SYSTEM.
 STATUTORY REFORMS IN THE FINANCIAL SYSTEM
THE EIGHTIES: UNIVERSAL BANKING

 IN 1980, EFFECTED A REVISION IN THE PHILIPPINE BANKING STRUCTURE INCLUDING

ADMINISTRATIVE REGULATIONS
 UNIVERSAL BANKING
THE NINETIES: THE NEW CENTRAL BANK

 JUNE 14, 1993 – PRESIDENT RAMOS SIGNED INTO LAW R.A. 7653 ENTITLED “THE NEW CENTRAL BANK
ACT” PURSUANT TO THE REQUIREMENTS OF THE 1987 CONSTITUTION FOR THE ESTABLISHMENT OF
AN INDEPENDENT CENTRAL MONETARY AUTHORITY.
CLASSIFICATION OF FINANCIAL SYSTEM

 BANKS (BANKING SECTOR)

 NON-BANK FINANCIAL INSTITUITON (NON-BANKING SECTOR)
 • INTERACTS DIRECTLY WITH THE CUSTOMERS
• INDULGES IN A NUMBER OF ACTIVITIES RELATING TO FINANCE
WITH A RANGE OF CUSTOMERS
BANKING SECTOR
• DEALS WITH BOTH INTERNAL AND INTERNATIONAL CUSTOMERS
• INTEREST IS TO HELP IN BUSINESS TRANSACTIONS AND
SAVINGS/INVESTMENT ACTIVITIES
• INTERACTS WITH BANKS AND GOVERNMENTS
NON-BANKING • MAINLY CONCERNED WITH THE TERM LOAN NEEDS OF LARGE
SECTOR ENTERPRISES
• MAINLY CONCERNED WITH THE FINANCES OF FOREIGN
COMPANIES
• INTEREST IS IN THE STABILIZATION OF THE CURRENCY.
BANKING INSTITUTION

 PRIVATE BANKING INSTITUTIONS ARE COMPRISED OF COMMERCIAL BANKING SUCH AS UNIVERSAL

BANKS AND ORDINARY COMMERCIAL BANKS; THRIFT BANKS LIKE SAVINGS AND MORTGAGE BANKS,
PRIVATE DEVELOPMENT BANKS AND STOCK SAVINGS AND LOAN ASSOCIATIONS; AND THE RURAL
BANKS.
 THE GOVERNMENT BANKING INSTITUTIONS, ON THE OTHER HAND CONSIST OF PHILIPPINE
NATIONAL BANK, DEVELOPMENT BANK OF THE PHILIPPINES, LAND BANK OF THE PHILIPPINES AND
THE PHILIPPINE AMANAH BANK.
BANKING SECTOR

 UNIVERSAL BANKS
 COMMERCIAL BANKS
 THRIFT BANKS (SAVINGS AND MORTGAGE BANKS, STOCK SAVINGS AND LOAN ASSOCIATIONS AND
PRIVATE DEVELOPMENT BANKS. )
 RURAL BANKS
 COOPERATIVE BANKS
 ISLAMIC BANKS
GOVERNMENT BANKING INSTITUTION

 Development Bank of the Philippines

 Land Bank of the Philippines
 Philippine Amanah Bank
NON BANK FINANCIAL INSTITUTION

 INSURANCE COMPANIES
 INVESTMENT HOUSES
 FINANCING COMPANIES
 SECURITIES DEALERS AND BROKERS
 FUND MANAGERS
 LENDING INVESTORS
 PENSION FUNDS
 PAWNSHOPS
 NON STOCK SAVINGS LOAN ASSOCIATIONS.
GOVERNMENT NON FINANCIAL INSTITUTION

 GOVERNMENT SERVICE INSURANCE SYSTEM

 SOCIAL SECURITY SYSTEM
 PHILIPPINE EXPORT AND FOREIGN LOAN GUARANTEE CORPORATION
 NATIONAL MORTGAGE FINANCE CORPORATION