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8/6/2019 Central Bank’s Regulatory Role
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B angko Sent ral ng Pi l ipinas
Central Bank ’s Regulatory Role
over NBFIs:
Mr. Ricardo P. Lirio
Managing Director, SE II
The Philippine Experience
8/6/2019 Central Bank’s Regulatory Role
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Type of Financial Institution Total Head Office Other Offices
I. Banks 7,587 925 6,662Commercial Banks 4,326
44 4,282
Thrift Banks 1,342
100 1,242
Rural and Cooperative Banks
1,919
781 1,138
II. Non-Bank Financial Institutions 9,687 5,243 4,444
A. With Quasi-Banking Functions 31 12 19
Investment Houses 17 7 10
Financing Companies
14 5 9
B. Without Quasi-Banking Functions
9,656
5,231
4,425
Investment Houses 30 26 4
Financing Companies
50 40 10
Investment Companies
9 9
Securities Dealers/Brokers 26 26Lending Investors
9 9
Government NBFIs 2 2
Venture Capital Corporations
9 9
Non-Stock Savings and LoanAssociations
117 85 32
Pawnshops*
9,397
5,018
4,379
Credit Card Companies
7 7
III. Offshore Banking Units 12 11 1
FINANCIAL INSTITUTIONS UNDER BSPSUPERVISION/REGULATION
As of March 31, 2002
*As of December 31, 2001
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Banks w ith NBFI Subsidiaries/ Affil iates
B angko Sent ral ng Pi l ipinas
Invest.
House
Financing
Company
Inv.
House
Financing
Company
Securities
Dealers
Credit
Card
Venture
Capital
Invest.
Company
Bank of the Philippine Islands 1 2 2 3 2
Metrobank 2 1 2 1 1 1
Equitable-PCI Bank 1 2 2 1 1 1
Phil ippine National Bank 1 1 1 1
RCBC 1 1 1 1 1
wi th QB wi thout QB
Name of Bank
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REGULATORY and SUPERVISORY
AUTHORITY
B angko Sent ral ng Pi l ipinas
RA 7653
The New Central Bank Act
Supervision and examination of banks and quasi-banks including
their subsidiaries and affiliatesengaged in allied activities
RA 8791
The General Banking Act 2000
Regulation of the organizationand operations of banks, trustentities and for other purposes
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B angko Sent ral ng Pi l ipinas
Banks NBFIs
DemandDeposits/CheckingAccounts
SavingsDeposits(Passboo
k)Time
Certificate of
Deposits
Deposit
Instruments
Promissory Notes
Repurchase
Agreements
Certificatesof
Participatio
n/Assignment
Deposit-Substitute
Instruments
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B angko Sent ral ng Pi l ipinas
Non-Bank Financial Institutions
WithoutQuasi-Banking
Function
WithQuasi-BankingFunction
Entity is borrow ing from20 or more persons or
entities
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B angko Sent ral ng Pi l ipinas
Issuance of deposit
substitutes orborrowinginstruments by anNBFI to 20 or morepersons or entities
irrespective of outstanding
amounts isconsidered
borrow ing from
PUBLIC
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B angko Sent ral ng Pi l ipinas
NBFIs Regulatory Framework
1970s Development and growth of NBFIS
REQUIRED GOVERNMENT INTERVENTION
1971Formation of Joint Central Bank of thePhilippines & IMF Banking Survey
Commission
NBFIs should be under theauthority of the Central Bank for
effective administration of credit
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B angko Sent ral ng Pi l ipinas
NBFIs Regulatory Framework
1982Rules governing operations of NBFIswere consolidated as Book IV of theManual of Regulations
1980s
Intensified competition amongfinancial institutions
Increased availability of long termfunds through direct and indirectfinancing to increase stability of thefinancial system
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B angko Sent ral ng Pi l ipinas
1990s
Entry of foreign banks
Entry of foreigninsurance firms
1993
1993
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B angko Sent ral ng Pi l ipinas
1990s
1997RA 8366
Increasedforeign equityparticipation
and minimumcapitalization
for IHs
RA 8367
NSSLA ACT
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B angko Sent ral ng Pi l ipinas
Aids in ensuring strong solvencypositions and automatically weeds out
weak players in the industry
1997
INCREASEDCAPITALIZATION
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B angko Sent ral ng Pi l ipinas
1990s
1998
RA 8556
“FINANCING COMPANY ACT OF 1998”
An Act amending RA 5980, as Amended Otherwise Known as the Financing Company Act (1969)
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B angko Sent ral ng Pi l ipinas
2000
Issuance of Circulars providing rules andregulations to combat money-laundering
Anti-Money Laundering B il l
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B angko Sent ral ng Pi l ipinas
NBFI Governing Law
Quasi-Banks RA 8791 - The General Banking Law
Investment House RA 7653 - The New Central Bank Act
Financing Company
Trust Entities
Investment HouseFinancing Company
Other Trust Entities
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B angko Sent ral ng Pi l ipinas
NBFI Governing Law
Subsidiaries/ Affiliates of a Bank/QB RA 8791 - The General Banking LawInvestment House w/ o QB RA 7653 - The New Central Bank Act
Financing Company w/ o QB
Investment Companies
Securities Dealers/ BrokersLending Investors
Venture Capital Corporation
Enterprise Wholly or Majority Owned
by a Bank
Non-Financial Allied Undertaking
Non-Stock Savings and Loan Associations
Pawnshops
TIDCOR
SBGFC
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B angko Sent ral ng Pi l ipinas
NBFI Governing Law
Investment House PD 129 The Investment Houses Law
Financing Company RA 8556 Financing Company Act of 1988
Non-Stock Savings and Loan Associations RA 8367 Revised NSSLA Act of 1997
Pawnshops PD 114 Pawnshop Regulation Act
TIDCOR RA 8494 An act further amending
Presidential Decree #1080, as amended,
by reorganizing and renaming the
Philippine Export and Foreign LoanGuarantee Corporation, expanding its
primary purpose
SBGFC RA 6977 Magna Carta for SMEs
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B angko Sent ral ng Pi l ipinas
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B angko Sent ral ng Pi l ipinas
Central Bank ’s Regulatory Role
over NBFIs:
Mr. Ricardo P. Lirio
Managing Director, SE II
The Philippine Experience
