BANKING & BANKING SYSTEM Flashcards
play a vital role in the economy by facilitating the flow of funds between savers and borrowers, thereby supporting economic growth and development
BANKS
various types of financial institutions
commercial banks, investment banks, credit unions, and central banks
the most common type of banks that offer a wide range of services such as savings accounts, checking accounts, loans, and investment products.
Commercial banks
on the other hand, focus on providing services related to capital markets, mergers and acquisitions, and underwriting securities.
INVESTMENT BANKS
are member-owned financial cooperatives that offer similar services to commercial banks but are structured differently.
Credit unions
such as the Federal Reserve in the United States, are responsible for regulating the banking system, controlling the money supply, and maintaining financial stability.
Central banks
the ________ plays a crucial role in the economy by providing essential financial services, promoting economic growth, and ensuring the efficient allocation of resources.
banking system
act as intermediaries between savers and borrowers, channeling funds from those with excess funds to those in need of capital for investment or consumption.
BANKS
serves as the central bank and regulatory authority overseeing the banking sector in the country
Bangko Sentral ng Pilipinas (BSP)
The banking system in the Philippines is composed of various types of financial institutions, including
-universal and commercial banks
-thrift banks
-Rural banks
-cooperative banks
are the largest and most prominent players in the Philippine banking system, offering a wide range of financial services to both individuals and businesses.
Universal and commercial banks
focus on providing financial services to small and medium-sized enterprises (SMEs) and individuals. They typically offer savings and time deposit accounts, as well as consumer loans and mortgage loans
THRIFT BANKS
play a crucial role in providing financial services to rural communities and agricultural sectors. They offer services such as agricultural loans, microfinance, and other financial products tailored to the needs of rural clients.
RURAL BANKS
are owned and operated by their members, who are typically individuals or small businesses within a specific community or industry.
COOPERATIVE BANKS
