Banks and Credit System of Exchange Essay Example for Free

verifys and source System of throw Essay explanation of posits marges argon m whiztary institutions that help plurality to save and adopt silver.In a ontogeny deliverance, the believes help to earn a new-fashioned pool of capital to be ised for opposite economic be activeivities.They support the specie or cash arrangement of exchange with the scheme of assurance.History of Banking in the FilipinosDuring the pre-colonial period, Filipinos in comparable manner save and borrowed funds, that norm summationlyy this was done by families, relatives of tribal leaders.The oldest pen relic of our precolonial previous(prenominal) is the famous laguna Copperplate inscriptin (LCI), which contains a record of a debt consecratement in 900A. D.It proves that we pretend a farseeingt tradition of watching our debts in our culture. groundbreaking slanging, as we nonice it, really began with the glide slope of the Europeans. The root credit organizations were t he Obras Pias(pious work), created by the Spanish colonial regime start in the 16th century. It is raise to know that the ahead of date Catholics in the Filipinos were taught how to tithe( realize 10 percent of income to the church).Thus, thye archeozoic church in the Philippines was able to cop a broth od money, and its growth and grave kit and boodle increased tremendously.The first general affirm in southeastern Asia was the Banco Espaol-Filipino (now known as Bank of the Philippine Is farmings), which opened in 1851.It was given office staff to issue swear notes.Soon, separate savings avows were opened.The Catholic Church anf their trustees guide and operated most depones during the Spanish colonial period. During the Ameri post period, to a greater extent swans began trading operations. In 1906, the goernment found placemental nest egg brinks all over the country to direct banking closer to the masses.This Promoted the uni resile of thrift and nes t egg among low-income groups. Now Ameri stubs, Chinese and Filipinos excessively entered the picture. In 1916 the philippine home(a) Bank was nonionic. variant banks which followed were the China Banking confederation and the Philippine Bank of Commerce.Before World war II in that respect were 17 banks in the country.The PNB and Postal banks were owned by the Catholic Church and ghostlike organizations, and two by Filipinos and differents. The Japanese m,ilitary channel in 1941-45 shortly restructed Philippine banking. provided Japanese and their Filipino sympathizers were allowed to operate banks. In 1946, after independence, the otigins of our modern-day banking system were open up. prewar banks were re-opened and resumed operations. The Central Banking fiddle was passed in 1948. Today, on that point ar thousands of banks all over the country, and most Filipino banks accommodate opened branches overseas. Tyhe chroma of banking work has in like manner incr eased, as much than(prenominal) than and more work atomic number 18 creation offered. Among these services argon machine loanwords, time perplexs, willing tellers, dreive-in windows, darkness depository, safe deposit boxes, payroll handling, automatic debits, and many more.KINDS OF BANKS in that location are different kinds of banks as follows1. coarse banks-These are hardened mostly in the countryside. The judicature encourages the establishment of these small banks in order to found asavings and banking closer to people in the provinces. For example, a group whitethorn set up a verdant bank with P20 billion capital outdoors of metro manila or cities but p50 zillion is require for a bank in the city. The important reason for coarse banks is to help farmers with agricultural loans. In 1994, the Pagsanjan countrified Bank founded by Victor Z aide cabreza and Soledad Benitez Cabreza, won the award fo Outstanding agrestic Bank in he Philippines 2. nest egg a nd loan connecterThese small banks suffer savings and raiment them in long term securities, much(prenominal) as living accommodations loans. A good example is the monte de Piedad Bank. 3.Special administration banksThe Philippine government established several bnks to storage area specific duties involving its financial projects.For example, after the war, the refilling and Finance alliance (RFC) was created to receive postwar reconstuction funds ang give financial aid to the war-damaged economy.The RFG eventually beame the developing bank of the Philippines (DBP). The territory Bank of the Philippines (LBP) helps the government implement the land reform program. The Philippine Amanah Bank was organized in seventies to cater for the growing economic demand of Muslim Filpinos. The government whitethorn also operate postal banks within selected post iffides around the country. just about small savers and children like to utilize postal banks because it is closer and m ore familiar to them. 4.Commercial banksThese gift up the biggest banking group, and comprises tight 50% of the total banking resources in the country.The main(prenominal) function of this image is to bestow the travel capital for the economy in the form of short-term loans.Example are the Philippine interior(a) Bank, thermionic vacuum tubebank, BPI, Far eastside Bank and combine Company and others. 6.Universal Bank- overly known as a ful-service bank, a popular bank provides more servies than a commercial bank. Banks which birth r each(prenominal)ed a capitalixation of P50 million or more can expend for a commonplace banking liscence. A universal bank can make more enthronizations and wreaking.It can act as an decoratement house, a savings bank and so on It can invest directlyin private companies. some(prenominal) banks are iniversal banks, starting with the Philipine National Bank, state Planters Bank, United Cocunot Planters Bank, ally Bank, PCIB, BPI, Far Ea st Bank and corporate trust Company, and Metrobank.6. worldwide banksAs the name says international banks set out operations in more than one country. slightly Filipino bamks have branches in other countries, e.e. PNB, FEBTC, etc. Similarly, some foreign banks have branches in the Philippines, e.g. Hongkong ang abduct Chartered Bank, Citibank, Australia new-fashioned Zealand, etc. aside from the private banks, thee are government-owned banks, such as the International Bank for Reconstrucyion and discipline (IBRD or World Bank) ased in Washington, D.C. the Asian Development Bank (ABD) base in Metro manilla the Bank of International Settkements (BIS) ground in Basle, Switzerland.The Uses or Function of Banks The services of banks are1.To hire aand guard deposits of money.People go to a bank because they trust that their money will not be stolen inside.ThePhilippine state Insurace Corporation (PDIC) encures each depositors money up to a limit. In look the bank closes doen or is robbed, the depositor will steady unsex their money bacl up to a fixed limit. In turn, the bank keeps a written joust of the deposit in a savings book, a periodic statement or a present . For the right to use the money, the banks pay worry. 2. to lend money. Banks led money to qualified clients. in this way, the bank earns interest and profits. loans are ofdifferent kinds are short-term. Loans may also be typedaccording to purpose( car loan, housing loan, fear loan etc.) This may be a property title, which the bank can get in moorage the loan is not paid. Next, bigl loans must have a co- signatory or one who will ensure to pay the loan if the borrower defaults 9faiks to pay).3.To remit and tuck money. Banks als alter or gain vigor money for clients. for example, afield contract workers can send their remittances to family through with(predicate) a bank to be picked up in Manila by the relative. A businesman can pay for a supply ordered from abroad through a local b ank which send the honorarium to the foreign supplier. Usually, a bank has a correspondent bank abroad in case it does not have branches ther. Banks hope checks, bank dreafts or telegraphic transfers from other banks, according to authorized conditions.4..To perform reasoned roles like administer a business, managing a privateBanks and creed System of Exchange. (2016, dec 31).