Different types of banks and their functions
Banks in the Philippines are classified into universal, commercial, thrift banks, rural, cooperative, and Islamic banks. Universal banks are authorized to provide a variety of services including investment, commercial, and development banking, as well as 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 wide array of 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 are comprised of savings and mortgage banks as well as loan associations that focus on accumulating and investing depositors’ savings. This type of bank also provides short-term to long-term financing. Meanwhile, rural banks and cooperative banks are authorized to provide basic financial services to rural residents and financial assistance to farmers. Finally, Islamic banks cater to Muslim Filipinos and operate under Islamic laws.
