Thrift Banks

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Thrift Banks

A thrift institution is a financial institution formed
primarily to accept consumer deposits and make
home mortgages.

tend to be community-focused, and smaller than retail and
commercial banks.
Thrift institutions often pay out more in dividends (interest) than
do traditional financial institutions and have access to lower cost
funds from organizations like Federal Home Loan Banks

Since financial services have become increasingly deregulated,
thrift institutions have been able to offer more services to
businesses, however.


Commercial banks vs Thrifts and
Savings Banks vs Insurance
Companies

Commercial
banks


Thrifts and
savings banks

Insurance
companies

- depository
institutions
whose major
assets are
loans and
major
liabilities are
deposits

- depository
institutions in
the form of
savings banks,
savings and
loans, credit
unions, credit
cooperatives


- financial
institutions
that protect
individuals and
corporations
from adverse
events

Primary Types of Thrift Banks

Mutual Banks

Savings and Loan Associations

Credit Unions

RANK BANK ASSETS RANK
MARCH

BILLION DECEMBER
2013 PESOS 2012
1. BPI Family 164.654 1
2. PSBank 115.977 2
3. RCBC Savings 63.689 3
4. Planters Development 54.221 4
5. Philippine Business 36.534 5
6. Sterling Bank 29.195 6
7. HSBC Savings 22.937 7
8. City Savings 18.327 8
9. China Bank Savings 11.955 11
10. Citibank Savings 11.812 9
11. BPI Direct Savings 9.871 12
12. First Consolidated 9.606 10
13. UCPB Savings 8.756 14
14. PR Savings 8.263 13
15. Philippine Postal 7.118 17
16. Security Bank Savings 6.571 16
17. Malayan Bank Savings 5.773 18
18. Producers Savings 5.758 15
19. Equicom Savings 5.016 19
20. Allied Savings 4.367 20
21. BPI Globe Banko 3.911 21
22. Wealth Development 3.692 22
23. Luzon Development 2.963 24
25. Citystate Savings 2.704 23
26. Enterprise Bank 1.921 27
27. Penbank 1.876 29
28. ComSavings Bank 1.866 26
29. Queen City Development 1.753 30
30. United Overseas 1.707 28
31. BDO Elite Savings 1.591 31
32. Tong Yang Savings 1.476 33
33. Optimum Development 1.367 32
34. Hiyas Banking 1.239 34
35. Bank One Savings 1.102 36
36.
Dumaguete City
Development
1.087 38
37. Century SavingsA 1.082 37
38. Isla Bank 1.051 39
Other Thrift Banks
Area Development Bank
Asiatrust Development Bank
BankOne Savings and Trust Corporation
Cordillera Savings and Loan Bank
Equicom Savings Bank
Express Savings Bank
GSIS Family Bank (subsidiary of
the Government Service Insurance System)
Legazpi Savings Bank, Inc.
Lemery Savings and Loan Bank
Liberty Savings and Loan Association
Metro Cebu Public Savings Bank

Micro Enterprise Bank
Microfinance Maximum Savings Bank, Inc.
(MAXBANK)
Peafrancia Savings and Loan Association
Philam Savings Bank (subsidiary of Philam Life)
Philippine Resources Savings Banking
Corporation (PR Savings Bank)
Progress Savings and Loan Association
The Real Bank
Tower Development Bank
UCPB Savings Bank (subsidiary of United
Coconut Planters Bank)
University Savings and Loan Bank
World Partners Bank

Monte de Piedad - it is considered
the Philippines' first savings bank.

Its original name in Spanish was Monte
de Piedad y Caja de Ahorros.
Had its first building on Plaza Goiti in
Santa Cruz, Manila. Its businesses were
concentrated in banking and
pawnshops.

GE Money, in an effort to expand its presence in
Southeast Asia, acquired a majority stake in the
now-defunct Keppel Bank Philippines which
acquired what was formerly the Monte De Piedad
Bank, the Philippines' first savings bank. The
acquisition was finalized on December 20, 2005
after the Monetary Board of the Bangko Sentral
ng Pilipinas. approved the purchase on December
8, 2005. The bank was renamed GE Money Bank
Philippines. At present, GE Money Bank
Philippines has 31 branches all over the Philippine
archipelago.

Law on Thrift Banks
REPUBLIC ACT NO. 7906
An act providing for the regulation of the
organization and operations of thrift banks, and
for other purposes.
Section 1. Title. This Act shall be known and
cited as the "Thrift Banks Act of 1995.


REPUBLIC ACT NO. 7906
Sec. 2. Declaration of Policy. It is hereby declared the
policy of the State to:
(a) Recognize the indispensable role of the private sector, to
encourage private enterprise, and to provide incentives to
needed investments;
(b) Promote economic development pursuant to the
socioeconomic program of the government, to expand
industrial and agricultural growth, to encourage the
establishment of more private thrift banks in order to meet
the needs for capital, personal and investment credit or
medium- and long-term loans for Filipino entrepreneurs;
REPUBLIC ACT NO. 7906
(c) Encourage and assist the establishment of thrift bank
system which will promote agriculture and industry and
at the same time place within easy reach of the people
the medium-and long-term credit facilities at reasonable
cost;
(d) Encourage industry, frugality and the accumulation
of savings among the public, and the members and
stockholders of thrift banks; and
(e) Regulate and supervise the activities of thrift banks
in order to place their operations on a sound, stable and
efficient basis and to curtail or prevent acts or practices
which are prejudicial to the public interest.
Role of Rural Banks
to promote and expand the rural economy in an orderly
and effective manner by providing the people in the
rural communities with basic financial services.

help farmers through the stages of production, from
buying seedlings to marketing of their produce.

Rural Bank vs Cooperative Banks

Rural banks are privately owned and managed,
cooperative banks are organized/owned by cooperatives
or federation of cooperatives.

As at 17 February 2014, there were 36 universal and
commercial banks, 71 thrift banks, 533 rural banks, 40
credit unions and 6,267 non-banks with quasi-banking
functions, all licensed with the Bangko Sentral ng
Pilipinas (Central Bank of the Philippines) under Republic
Act No. 8791.

Savings
Income not spent, or deferred consumption. Also
includes reducing expenditures, such as recurring costs.

Saving is closely related to investment. By not using
income to buy consumer goods and services, it is
possible for resources to instead be invested by being
used to produce fixed capital, such as factories and
machinery.
Savings and Loan Association

Also known as thrift, Savings and Loan Association (S&L)

It is a financial institution that specializes in savings deposits and
mortgage loans

has become one of the primary sources of mortgage loans for
homebuyers today.

It offers mortgage services to people from the savings and deposits
received from private investors.

Depositors and borrowers are members with voting rights and have
the ability to direct the financial and managerial goals of the
organization.

Characteristics
Privately or locally managed financial institutions
Uses individuals deposits to make long-term amortized
loans to home buyers.
Disperses loans for home repairs, construction, and
refinancing

Reference
http://bizfinance.about.com/od/glossaryt/g/thrift-
institution.htm
http://en.m.wikipedia.org/wiki/List_of_banks_in_the_Phi
lippines#List_of_rural_banks
http://www.bsp.gov.ph/downloads/laws/RA7906.pdf
http://en.wikipedia.org/wiki/Fixed_capital