SYNTHESIS ON GOVERNMENT BANKING INSTITUTION
Government banking institutions is supervised and regulated by the Bangko Sentral ng Pilipinas. When we hear about government banks, it is easy for us to understand because it’s our government who runs the banks. There are two specialized government banks the Development Bank of the Philippines and Land Bank of the Philippines. The purpose of these banks is to provide services for the government employees, and it specifically provides opportunity for the veterans of the armed forces to work in the field as depositors, borrowers, stockholders, and officers. The Development Bank of the Philippines was created by the government in 1946, with the specific functions to provide long-term credit to finance private development projects. DBP services various sectors of Philippine society, from farmers to businessmen. Although the Philippines has an economy largely dependent on agriculture, something that Landbank addresses, DBP aims for national development through financing the various businesses and economic sectors that keep the Philippine economy afloat. Like Landbank, it provides the services of a regular universal bank; however, it is officially classified as a "specialized government bank" with a universal banking license.Also like Landbank, DBP also has a large rural branch network. However, the aim of DBP's rural branch network is not the same as Landbank's. Instead, DBP diversifies banking choices whenever an area's banking sector is either dominated by one or a few banks, regardless of status.It is designed to provide long-term finance for the rehabilitation of the agriculture, industry, and property damage during the World War III, and now the DBP is the second largest banking institution in the Philippines. The Land Bank of the Philippines was set up in the early 1970’s. It was the bank called upon to finance the acquisition by the government of landed estates for division and resale to small landowners,...
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