The Philippine Financial System

Topics: Bank, Central bank, Monetary policy Pages: 4 (1083 words) Published: September 19, 2012
FNANCIAL SYSTEM – a network that generates, circulates, and controls money andcredit.SURPLUS INCOME – refers to the excess incomes of an individual.OBRAS PIAS – the first credit institution n the Philippines; started by Fr. JuanFernandez de Leon in 1754 and ended in 1820.BANCO ESPAÑOL – Filipino de Isabella II the First Philippine Bank establish in 1851FIRST AGRICULTURAL BANK OF THE PHILIPPINES – established n 1906 and in 1916 allof its asset and liabilities were transferred to the newly organized PNB.FNANCIAL MARKET – are physical locations or electronic forums that facilitate theflow of funds among nvestors, businesses and governments. It provides themechanism for allocating financial resources of funds from savers toborrowers.ROLES OF THE FNANCIAL MARKET:1.Money market operation2.Expedites the transaction of financial claims3.Serves as a mean of bringing the forces of demand and supply of financialclams4.Facilitates the flow of funds among investors, business, and governments.5.Provides the mechanisms for allocating financial resources or funds fromsavers to borrowers.6.Raises money by selling shares to investors and its existing share can bebought or sold.7.Where lenders and their agents can meet borrowers.8.Convenes many interested sellers n one place.9.Provides the place where many commodities are traded.10.Used to match those who want capital to who have it.11.Facilitates: •

 The raising capital in capital markets

 The transfer of risk in the derivatives market

International trade in the currency market1942 – PNB closes its doors because of the coming of the Japanese imperial Forces.Rehabilitation Finance Corporation – formed in 1946 to provide credit facilities forthe rehabilitation of agricultural, commerce and industry reconstruction of war-damaged properties and later become the Development Bank of thePhilippines.Offshore Banking Units – any branch, subsidiary of...
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