Non-Bank Thrift Institutions in the Philippines
NON-BANK THRIFT INSTITUTIONS
Non-bank thrift institutions - form a small segment in the country’s financial system and are not so well known as the others. Organized as non-bank entities, they do not perform any banking or quasi-banking functions.
Two kinds: 1. Savings and loan association 2. Mutual building and loan association
Savings and loan association
Organization
Republic Act No. 3779 – was approved on June 22, 1963, provided for the establishment and operation of savings and loan association in this country.
Central Bank Circular No. 157 – was promulgated for the effective implementation of the enabling Act by the Monetary Board laying down rules and regulations governing the establishment and operations of savings and loan associations.
Presidential Decrees Nos. 113 and 450 - With the dawn of the New Society and feeling the inadequacy of certain provisions of the said Act, the president issued these as amendment thereto.
Declaration of Policy
The state declares that it is its policy: a. To regulate and supervise the activities of savings and loan associations in order to place their operations on a sound, stable and efficient basis to the end that they may be able to better provide for the establishment of additional credit and savings facilities in a fair manner to the consuming public and industry, commerce, and agriculture and to curtail or prevent acts or practices of these savings and loan associations which are prejudicial to the public interest. b. To lay down the minimum requirements and the standards under which savings and loan associations may be established and do business c. To maximize the protection of the public, and of the members and stockholders of savings and loan associations against misfeasance of the directors and officers thereof d. To encourage industry, frugality and the accumulation of savings among the public, and the members and stockholders of savings and loan associations.
Savings
Non-bank thrift institutions - form a small segment in the country’s financial system and are not so well known as the others. Organized as non-bank entities, they do not perform any banking or quasi-banking functions.
Two kinds: 1. Savings and loan association 2. Mutual building and loan association
Savings and loan association
Organization
Republic Act No. 3779 – was approved on June 22, 1963, provided for the establishment and operation of savings and loan association in this country.
Central Bank Circular No. 157 – was promulgated for the effective implementation of the enabling Act by the Monetary Board laying down rules and regulations governing the establishment and operations of savings and loan associations.
Presidential Decrees Nos. 113 and 450 - With the dawn of the New Society and feeling the inadequacy of certain provisions of the said Act, the president issued these as amendment thereto.
Declaration of Policy
The state declares that it is its policy: a. To regulate and supervise the activities of savings and loan associations in order to place their operations on a sound, stable and efficient basis to the end that they may be able to better provide for the establishment of additional credit and savings facilities in a fair manner to the consuming public and industry, commerce, and agriculture and to curtail or prevent acts or practices of these savings and loan associations which are prejudicial to the public interest. b. To lay down the minimum requirements and the standards under which savings and loan associations may be established and do business c. To maximize the protection of the public, and of the members and stockholders of savings and loan associations against misfeasance of the directors and officers thereof d. To encourage industry, frugality and the accumulation of savings among the public, and the members and stockholders of savings and loan associations.
Savings