Republic of the Philippines

Bukidnon State University

School of Graduate Studies

Malaybalay City

PHILIPPINE FINANCIAL SYSTEM

The financial system of the Philippines comprised of not just banks but

also all financial institutions herein the country. The Philippine financial system

consists mainly of rural banks, which make up the majority of total banking

institutions. Rural banks provide credit to farmers and agricultural-related

businesses. These banks, along with cooperative banks that provide similar

services, have the lowest asset values and market shares relative to universal

and commercial banks. However, rural and cooperative banks have higher yearly

growth rates than universal and commercial banks combined. The Philippine

financial system is structured by type of bank including universal, commercial,

savings and cooperative banks, according to statistics compiled by

Asianbanks.net from noted bank adviser Paul Sheehan. Although the countrys

banking system primarily consists of rural and thrift banks, universal and

commercial banks account for larger market shares.

As to the Bangko Sentral ng Pilipinas is a financial institution vested by the

State with the function of regulating the supply, cost and use of money with a

view to promoting national and international economic stability and welfare.

Under BSP is the MONETARY BOARD it is the policy making body of the BSP

it exercise the powers and functions of the BSP. It issues rules and regulations it

considers necessary for the effective discharge of the responsibilities and

exercise the powers vested upon it. They also direct the management,

operations and administration of the BSP, establish a human resource

management system, adopt an annual budget for and authorize such

expenditures by Bangko Sentral and indemnify its members and other officials of

Bangko Sentral.

As to the other financial institutions it is also part of our system being that

we have been up to having some dependence on private and non-financial

institutions. We garner service from them in having some investment from other

sources that helps our economy.

Insights:
Through our growing economy we experience some difficulties in attaining
our economic development we are aiming for due to some constraint made from
our current government status. As to the current issues we are facing now we
have too many instance that we are on the verge of adding up to our credit
issues from the reasons of development plans delayed by corruption.
It is an unfortunate circumstances for we have an efficient financial system
derived from the world economy nowadays but because we all have our own
personal interest that we doesnt foresee the real need of the nation. Such
circumstances affect our nation building plan also it affect every stakeholders
that the nation should cater.
On the side of economic development such derivations of economic will can help
our nation attain such progress.
The domestic financial system has demonstrated resilience to external and
domestic shocks since the 1997 financial crisis. However, some remaining issues
need to be addressed to ensure that the Financial system will remain stable and
can fully exploit growth opportunities. Financial system a network that generates,
circulates, and controls money and credit.