List of Types of Banks in the Philippines & the Main Functions of Each Banking Institution
TYPES OF BANKS IN THE PHILIPPINES – Here is a list of the different types of banking institutions as well as the main functions of each.
What is quite unknown to many people is that there are several types of banks in the Philippines. While the banks look like they have similar offers, they have different primary functions. By knowing these functions, you will known which one is the best turn-to for your need.
Below, you will read the four (4) types of banks in the Philippines as well as their primary functions. You might also like to check the specific banking institutions that belong to each category so it would be easier to decide which one to turn to for your specific need.
Commercial Banks. There are several commercial banks in the Philippines. Their main function is to provide financial services to the general public. They also offer business loans that cater to the financial needs of both big and small businesses. This type of banks often deal with the following:
- Checking and Savings Accounts
- Personal Loans
- Business Loans
- Certificates of Deposits (CDs)
Universal Banks. Just like the previously-mentioned kinds of banking firms, there are also several universal banks in the Philippines. These banking institution provide deposit accounts, asset management, credits, loans, investment advisory, securities transaction, financial analysis, and payment processing services.
Savings Banks. Are you looking for an entity that can help you grow your money? Undeniably, many people are not aware that picking a bank is not enough.
It is best to choose a Savings Bank as its main function is to help its clients grow their money. The accumulated wealth are used for loans of clients who have the capacity to pay. The bank pays interest or dividends to their clients. There are several Savings Banks in the Philippines.
Rural Banks. Amid the many new banks sprouting in the country, several rural banks in the Philippines managed to maintain their existence and be of service to countless individuals in rural areas. They were created to provide the banking needs of individuals living in a specific area away from the urbanized cities where most banks are located.