Types of Banks in the

Philippines

UNIVERSAL & COMMERCIAL

BANKS
represent the largest single group,
resource-wise, of financial institutions in
the country. They offer the widest variety
of banking services among financial
institutions. In addition to the function of
an ordinary commercial bank, universal
banks are also authorized to engage in
underwriting and other functions of
investment houses, and to invest in
equities of non-allied undertakings.

Universal Banks
offer the widest variety of services
among all financial institutions in the
Philippines today. In addition, only
banks under this category can
engage in the functions of an
investment house such as
underwriting. Universal banks can
also invest in equities of non-allied
undertakings.

Commercial Banks
offer the same variety of banking
services offered by a universal bank.
However, it cannot engage in
underwriting and other functions of
an investment house.

THRIFT BANKING SYSTEM

Thrift banking system is composed of
savings and mortgage banks, private
development banks, stock savings and loan
associations and microfinance thrift banks.
accumulates the savings of its depositors
and invests it. Most thrift banks are known
to provide short-term working capital, and
medium- and long-term financing to
businesses engaged in agriculture,
services, industry, housing and allied
services, especially to small and medium
enterprises.

Thrift Banks
They also provide short-term working
capital and medium- and long-term
financing to businesses engaged in
agriculture, services, industry and
housing, and diversified financial and
allied services, and to their chosen
markets and constituencies,
especially small- and mediumenterprises and individuals.

RURAL & COOPERATIVE

BANKS
Rural and cooperative banks are the more popular

type of banks in the rural communities. Their role

is to promote and expand the rural economy in an
orderly and effective manner by providing the
people in the rural communities with basic
financial services.
Rural and cooperative banks help farmers through
the stages of production, from buying seedlings to
marketing of their produce.
Rural banks and cooperative banks are
differentiated from each other by ownership.
While rural banks are privately owned and
managed, cooperative banks are organized/owned
by cooperatives or federation of cooperatives.

Rural Bank
commonly found in far-flung areas that
cannot be reached by bigger banking
institutions. These privately-owned banks
provide basic financial services to the
small but growing economies in the
countryside. More often than not, the
rural banks are the ones helping farmers
through the stages of production--from
providing loans for inputs and irrigation
to harvest.