1.

Discuss the history of banking, from the origin of the term “bank” up to the appearance of
the paper currency.

- The history of banking arises from the word "Banco"; Banco is an Italian word which means a
bench, wherein bench happens the borrowing and lending of money since the Italian merchants
in the Rennaissance.

- Way back in the early beginnings, the concept of banking was just about the safe-keeping of
gold, and it is the only asset that has value during the time of 18th Century BC. In Egypt and
Mesopotamia, gold is stored in temples for safe-keeping.

- In the 4th Century BC, Greek and Roman are the financiers before they are called the private
entrepreneurs.

- In their traditional position as money lenders to the wealthy and powerful, Jews were eventually
replaced by bankers from northern Italy during the 13th century, collectively known as the
Lombards. The Italians' business skills are improved by their double-entry bookkeeping
innovation. Creative accounting causes the Christian sin of usury to be avoided; interest on a
debt is portrayed in the accounts either as a voluntary donation from the creditor or as a risk-
taken incentive.

- In 1587 the government opened in Venice bank called "Banco Della Piazza Rialto." It aims to
fulfill the essential role of safe deposit keeping of merchant funds and to enable financial
transactions in Venice and elsewhere to be carried out without the physical movement of coins.

- Then paper currency arises, and it started in Sweden, which is in Europe. But actually, the first
country that came with a paper currency was printed by the Chinese and followed by
Mongolians. In addition, the first national bank was in Sweden.

2. Discuss the history of the Philippine Banking System.

- The first bank in the Philippines is Banco Espanol-Filipino de Isabel II, which already evolved into
the Bank of the Philippine Islands, and it was established on August 1, 1851. Banco Espanol
Filipino de Isabel II was named after then Queen of Spain, Isabel II. It was located on Aduana
Street, Intramuros, with a capital of P400,000, which was drawn from the Obras Pias, and Jose
Rizal was one of the clients of BPI who has a time deposit with the bank.

- After the war between the Spaniards and Americans happened in 1898, BPI was reorganized and
privatized under the U.S federal government. The bank adopted its current name on January 1,
1912. Afterward, under the American rule, BPI was strictly monitored and supervised, a task
assigned by the First Philippine Commission to the Bureau of Treasury. Then the gold coins of
the United States became legal tender in the Philippines.
 - During the time of the Excellency of President Manuel Roxas in the year 1946, our country
developed its Central Banking System, and he instructed Finance Secretary Miguel Cuaderno, Sr.
to draw a charter for a central bank.

- The National Assembly was required in the 1973 Constitution to create an autonomous central
monetary authority. The Central Bank of the Philippines was later appointed by PD 1801 as the
central monetary authority (CMA). Years later, the 1987 Constitution incorporated the
provisions of the 1973 Constitution on the CMA, which were effectively meant to create an
independent monetary authority by expanded capitalization and greater participation of the
private sector in the Monetary Board.

- The administration succeeding President Corazon C. Aquino's transitional government saw the
turning of another chapter in central banking in the Philippines. On 14 June 1993, President
Fidel V. Ramos signed into law Republic Act No. 7653, the New Central Bank Act, in compliance
with a clause in the 1987 Constitution. The legislation provides for the formation of an
autonomous monetary authority to be known as Bangko Sentral ng Pilipinas, whose primary
purpose is specifically to preserve market stability.

3. Research on the three (3) Philippine Government Banks and the main services that they
provide to the Government and government employees active or retirees.

1. Development Bank of the Philippines (DBP)

 National Government
a. Fulfill the special obligations that the Bank has contracted with the Philippine
Government and provide the unequivocal support to the government’s goal of
inclusive growth and economic development consistent with national
development policies and programs;

b. Help create employment opportunities, alleviate poverty and set-up the

country’s productive capacity.

 Regulatory Agencies
a. Provide timely and accurate reports on its operations, and disclose to the
appropriate regulatory agencies and bodies such as the Bangko Sentral ng
Pilipinas (BSP), GCG, Securities and Exchange Commission (SEC), Commission on
Audit (COA), Civil Service Commission (CSC), Office of the Government
Corporate Counsel (OGCC) and Department of Finance (DOF), among others, all
relevant information as required by law;
 b. View them as partners in upgrading the Bank’s systems and procedures as well
as in crafting new laws and their implementing rules and regulations.

 Local Government Units (LGUs)

a. Work closely with LGUs to help them realize the developmental path for their
localities;

b. Brief LGUs on development financing programs to enable the Bank to open

them to growth possibilities;

c. Guide LGUs on the procurement process, environmental risk evaluation, social

safeguards and project monitoring to ensure project integrity and sustainability

d. Partner with other institutions to assist LGUs in charting their public governance
improvement path and also to recognize their exemplary achievements for
others to emulate.

 Private Sector
a. Adhere to the initiatives and best practices of the private sector on good
governance. As signatory to the Integrity Pledge, the Bank is committed to
uphold the highest standards of ethics in all transactions in accordance with the
Unified Code of Conduct for Business (UCC);

b. The Bank is also committed to pursue the good governance program under the
Performance Governance System (Balanced Scorecard) of the Institute of
Solidarity in Asia and the Institute of Corporate Directors.

 Officials and Employees

a. Enhance the quality of life of its officers and employees by providing a
competitive compensation package according to the DBP Charter and consistent
with the GOCC Compensation and Position Classification System (CPCS); provide
opportunities for training and values formation to assist them in their career
path; strengthen their commitment to excellence in public service; and cultivate
their social and environmental awareness and nationalism.
 2. LANDBANK

 The Land Bank of the Philippine is a government financial institution that strikes a
balance in fulfilling its social mandate of promoting countryside development while
remaining financially viable.
- An in implementing agency of CARP involved in land evaluation, compensation
to owners of private agricultural lands, and collection of amortizations from
CARP farmer beneficiaries.

- Provision of credit assistance to small farmers and fisherholk and ARBs.

- An official depository of government funds.

- A government bank with a social mandate to spur countryside development

3. Philippine Veterans Bank

- Philippine Veterans Bank is a private and commercial bank owned by Philippine

World War II Veterans and their families. PVB caters both corporate and retail
financial markets. It offers deposit and loan services, treasury products, trust
services, institutional banking and other services.

- While PVB was conceived and created as a private commercial bank under
Section 27 of RA 3518. This mandate to accept government funds from national
agencies, local government units, and government owned and controlled
corporations was reaffirmed under Department of Finance Circular 01-2017.

4. Choose one (1) private commercial bank and research on the different services that it
provides to its’ clients.

 BDO
- is a full-service universal bank that provides a complete array of industry leading
products and services to the retail and corporate markets including Lending
(corporate, middle market, SME, and consumer), Deposit-taking, Foreign Exchange,
Brokering, Trust and Investments, Credit Cards, Corporate Cash Management and
Remittances. Through its subsidiaries, the Bank offers Leasing and Financing,
Investment Banking, Private Banking, Bancassurance, Insurance Brokerage and
Stock Brokerage services.
5. What is a financial institution? (base your answer on the video in topic 1.3)

- It says in the video that Financial Institutions provide services to individual

consumers, including businesses. These services include deposit products, loans
and investments. The Central Bank is called the federal reserves which
supervised and regulates the other small financial institutions.

“I affirm that I shall not give or receive any unauthorized help on this assignment and that all work
shall be my own.”