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    Banking History in The Philippines

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    Regina Lintua
    The document summarizes the history of banking in the Philippines from the Spanish era to present day. It traces the development of banking through colonial periods under Spain and the US, as well as the Japanese occupation. Key events include the establishment of the country's first bank in 1828, the establishment of more foreign and domestic banks in the American period, and the founding of the central bank - Bangko Sentral ng Pilipinas - in 1949 to regulate the industry. The history shows the influence of colonial powers on banking traditions and the growth of a domestic banking sector over time.

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    Banking History in The Philippines

    Uploaded by

    Regina Lintua
    1K views53 pages
    The document summarizes the history of banking in the Philippines from the Spanish era to present day. It traces the development of banking through colonial periods under Spain and the US, as well as the Japanese occupation. Key events include the establishment of the country's first bank in 1828, the establishment of more foreign and domestic banks in the American period, and the founding of the central bank - Bangko Sentral ng Pilipinas - in 1949 to regulate the industry. The history shows the influence of colonial powers on banking traditions and the growth of a domestic banking sector over time.

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    Original Title

    BANKING HISTORY IN THE PHILIPPINES

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    The document summarizes the history of banking in the Philippines from the Spanish era to present day. It traces the development of banking through colonial periods under Spain and the US, as well as the Japanese occupation. Key events include the establishment of the country's first bank in 1828, the establishment of more foreign and domestic banks in the American period, and the founding of the central bank - Bangko Sentral ng Pilipinas - in 1949 to regulate the industry. The history shows the influence of colonial powers on banking traditions and the growth of a domestic banking sector over time.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1K views53 pages

    Banking History in The Philippines

    Uploaded by

    Regina Lintua
    The document summarizes the history of banking in the Philippines from the Spanish era to present day. It traces the development of banking through colonial periods under Spain and the US, as well as the Japanese occupation. Key events include the establishment of the country's first bank in 1828, the establishment of more foreign and domestic banks in the American period, and the founding of the central bank - Bangko Sentral ng Pilipinas - in 1949 to regulate the industry. The history shows the influence of colonial powers on banking traditions and the growth of a domestic banking sector over time.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 53

    PHILIPPINE BANKING

    HISTORY
    As the banking business gained ground in
    America and elsewhere, the Philippines
    was not one to be left behind. Historically,
    our own past has been intertwined with the
    colonization of our country by a
    conglomeration of races.
    Fromthe pre-spanish times to the present,
    our banking history has withstood the
    traces of practically every race and
    influence that dominated our country
    through the years. So much so, that we
    could conveniently divide the periods as
    that of....
    Spanish Era
    SPANISH ERA

    The Obras Pias ceased to operate in


    1820 and was totally non-existent by
    1851.

    The spanish gov’t., cognizant of the


    improving progress, granted a charter to
    establish a first commercial bank in
    1828.
    The Banco Español-Filipino
    perform general banking functions and
    partly financed foreign trade. It was also
    given a privilege of note issue on October
    17, 1854.

    The pesos fuertes, issued by the


    country’s first bank, the El Banco Español
    Filipino de Isabel II, were the first paper
    money circulated in the Philippines.
    BPI issued First Notes
    Suez Canal
    • 1853 Banco Peninsular Ultramarino of
    Madrid put up a branch in the Philippines,
    but stop operation after 4 years.

    • By the end of Spanish regime, there were


    four banks in operation, three of which are
    commercial and one a savings bank .
    Supervision and regulation were negligible.
    There were only the Spansh Civil Code and
    the Code of Commerce regulating banking
    business. The gov’t. had no definite
    commitments and responsibility to the banks
    and their clients. Filipino interest in the
    banking business then was almost nil.
    American Era
    Banks operating during the Spanish regime
    continues to do business and were soon
    joined by branches of the International
    Banking Corporation (subsequently absorbed by
    the National City Bank of New York) and the
    Guaranty Trust Company.
    • 1906 The Postal Savings Bank was created
    as part and parcel of the Bureau of posts to
    inculcate the habit of thrift in the minds of the
    people, particularly those in the low income
    groups.

    • 1908 the Agricultural Bank, with a


    capitalization of P1,000,000.00 was
    established. This failed however, due to
    meager capital
    Foreign banks dominated the Philippine
    scene until 1916 when the Philippine
    National Bank was granted its charter.
    This was capitalized at
    P 20,000,000.00, which was almost entirely
    subscribed by the government and a little of it
    by private citizens.
    It was granted the privilege to issue its own
    notes.
    It was engaged in extending short-term notes
    to merchants and long-term loans to
    agriculture and industry. It established
    branches, agencies, and sub-agencies in the
    provinces. It was, however, re-organized in
    1934 and its capital was reduced to
    P 10,000,000.00
    AMERICAN
    ERA
    1900 The Philippine Commission headed by
    William H. Taft created the Bureau of Insular
    Treasury which was tasked to receive and
    disburse public funds and account for the
    same. It also began the supervision of the
    country’s banks.
    1901 The Bureau of Insular Treasury was
    placed under executive control of the
    Department of Finance and Justice by Section
    3 of Act No. 222
    1905 The Bureau of Insular Treasury was
    renamed to Bureau of the Treasury by Act No.
    1679 and given the additional task of
    coinage and currencysupervision.
    After World War 1, more banks were
    established.

    1919- Yokohama Specie Bank


    1920- China Banking Corporation
    - the Peoples Bank and Trust Company
    1926- Mercantile Bank of China.
    1929- The Bureau of Banking assumed the
    supervision of the country’s banks from the
    Bureau of the Treasury.
    1930- the year marked the milestone in
    banking history with the establishment of
    the Manila Clearing House, which was
    organized only by domestic banks.
    With these developments, the banking
    industry gained stability and was exempted
    from the Banking Holiday of 1933.
    Upon the establishment of the
    Commonwealth, still other banks joined in.

    1937- Nederlandsch Indische Handelsbank


    opened a branch
    1938- Philippine Bank of Commerce, the
    First private bank with genuine Filipino
    capital, opened its doors for business.
    1938- The Bank of Taiwan was granted
    permission to perate a branch in Manila.
    1939- three Banks commenced commercila
    banking operation namely;
    Bank of the Commonwealth
    Philippine Bank of Communications and the
    government-owned
    Agricultural-Industrial Bank.
    At this time, there were all in all 17 banks with
    the same number of Manila offices, 22
    provincial branches, 54 provincial agencies
    and 1000 sub-agencies. Of the total number
    of banks, two (2) were government-owned.
    The others were a mixture of domestic and
    foreign capitalization.
    Definite steps to supervise and regulate banking
    business were necessary as some foreign banks
    were not branches but main offices. As such, the
    first Philippine Commisssion passed Act 52
    which provided for the examination and
    inspectionof banks as an initial step toward the
    objective of safeguarding the interests of
    depositors and stockholders.
    Japanese Era
    Postwar Era
    Traces of Banking History

     The spanish Era


     The American Era
     The Japanese Era
     The post-war era, and
     The present
    Banking Holiday

    When a new president, Franklin Delano Roosevelt


    was inaugurated in March 1933, banks in all 48
    states had either closed or had placed restrictions
    on how much money depositors could withdraw.
    FDR's first act as President was to declare a national
    "bank holiday" – closing the banks for a three-day
    cooling off period.
    Charter

    a written grant by a country's legislative or


    sovereign power, by which a body such as a
    company, college, or city is founded and its
    rights and privileges defined.
    Conglomeration

    a cluster; things joined into a compact


    body, coil, or ball,
    a mass of miscellaneous things
    Banko Sentral Ng Pilipinas
    Established 1949
    s

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