Philippine banking system overview
Banks in the Philippines are regulated by the Bangko Sentral ng Pilipinas or the central bank and are classified into universal, commercial, thrift banks, rural, cooperative, and Islamic banks. Universal banks are authorized to provide various services, including investment, commercial, and development banking, mutual funds, and housing loans. Commercial banks, on the other hand, are privately owned institutions that accept deposits and offer checking services. In the Philippines, these kinds of banks are the largest group of financial institutions and the most popular among customers with different financial needs because of their vast financial services. Among the largest universal and commercial banks in the country in terms of assets were BDO Unibank Inc., Metropolitan Bank and Trust Company, and the Land Bank of the Philippines.On the other hand, thrift banks comprise savings and mortgage banks and loan associations, which focus on accumulating and investing depositors’ savings. This type of bank also provides short-term to long-term financing. Meanwhile, rural and cooperative banks are authorized to offer essential financial services to rural residents and financial assistance to farmers. Finally, Islamic banks cater to Muslim Filipinos and operate per Islamic laws.