Philippine Banks: The Different Faces In Banking

An inclusive banking system in the Philippines covers different forms of Philippine banks such as:

* Rural banks * Universal banks, and; * Non-banks.

Right now, there are 23 commercial banks, 17 universal banks, 711 rural banks, 84 thrift banks, 12 non-banks along with quasi-banking jobs and 44 credit unions. All of them are licensed at the Bangko Sentral ng Pilipinas.

Commercial banks have the following powers

* Power of thrift banks * Recognize and grant letters of credit * Bull and sell foreign exchange, silver or gold bars * Extend credits * Allow and produce demand deposits * Markdown and settle drafts, promissory notes, bills of exchange as well as debt evidences * Collect other forms of deposit substitutes and deposits * Obtain marketable bonds and additional debt securities

The commercial banks in the Philippines are the following:

* Philtrust Bank * East West Bank * Asia United Bank * Philippine Veterans Bank * Export and Industry Bank * BDO Private Bank * Philippine Bank of Communications * Bank of Commerce

The foreign banks which have commercial bank operations are:

* Citibank * JPMorgan Chase & Co. * Standard Chartered Bank * Australia and New Zealand Banking Group (ANZ) * Bank of America * Bank of Tokyo-Mitsubishi * Deutche Bank * Bangkok Bank * GE Money Bank * Bank of China * Mizuho Corporate Bank * Industrial and commercial Bank of China * Korea Exchange Bank

Similar to commercial Philippine banks, universal banks also have the power to invest on non-allied enterprises and the power of investment house as it is provided in the present laws. The local universal Philippine banks are:

Government owned * Land Bank of the Philippines * Amanah Islamis Investment Bank of the Philippines * Development bank of the Philippines

Privately owned * Chinabank * Allied Bank * Security Bank * Philippine National Bank * Bank of the Philippine Islands * Banco de Oro * Metropolitan Bank and Trust Company * Rizal Commercial Banking Corporation * United Coconut Planters Bank * Union Bank of the Philippines

The foreign banks in the Philippines with universal bank operations are:

* Standard Chartered Bank * The Hong Kong and Shanghai Banking Corporation * Caylon Bank * ING Bank

More than the commercial and universal banks, numerous thrift banks are also operating in the Philippines. Thrift banks can:

* Receive time and savings deposits * Serve as correspondent together with additional financial institutions * Act as collector of government entities * Issue mortgages * Expand credit * Engage in real estate operations * Sustain checking accounts * Engage in money market and quasi-banking transactions * Serve as depository of government entities

A government owned local thrift bank is Philippine Postal Savings Bank while some of the privately owned local thrift banks are listed below in random sequence:

* Allied Savings Bank * Asiatrust Bank * Banco Filipino * Bank of Cebu * BPI Family Savings Bank * Chinabank Savings * Equicom Savings Bank * GSIS Family Bank * Inter-Asia Development Bank * LBC Bank * Legazpi Savings and Loan Bank * Liberty Savings and Loan Association * Luzon Development Bank * Malayan Bank * Merchants Savings and Loan Association * Metro Cebu Public Savings Bank * Pacific Ace Savings Bank * Philam Savings Bank * Philippine Savings Bank * Progress Savings and Loan Association * RCBC Savings Bank * Robinsons Savings Bank * Sterling Bank of Asia * UCPB Savings Bank * World Partners Bank.

The more common type of Philippine banks among rural communities is the rural bank. It's job is to endorse and develop the rural economy using a methodical and efficient manner through providing the locals with fundamental financial services. A rural bank is privately managed and owned. It can provide ample credit services to merchants and farmers and generally to the locals of rural areas where the bank operates.