This website uses cookies to ensure you have the best experience. Learn more

Philippine Banking Essay

1661 words - 7 pages


 Philippine banking has a long and colorful history. It began in 1828 when, as the Philippines reaped the benefits of increased trade, King Ferdinand VII of Spain issued a decree mandating the establishment of a public bank in the Philippines. 

However, it took 23 years before that bank could become a reality. The man behind the actual organization of the bank was no less than the governor-general of the Philippines at that time, His Excellency Antonio de Urbiztondo y Eguia. 

Gov. de Urbiztondo was a marquis of Solana in Spain who was named governor-general of the Philippines in 1850. His term of office was characterized by many administrative ...view middle of the document...

The man was Antonio de Ayala of the prominent Casa Roxas, precursor of Ayala y Cia, which is now Ayala Corporation. 

The royal decree that confirmed the creation of El Banco Español Filipino de Isabel 2 also gave the Bank the exclusive privilege to issue paper money, which antedated the currency-issuing authority of the post-war Central Bank of the Philippines by about a hundred years (The present central bank, the official issuer of Philippine currency, started operations only in 1949). The original bank notes were collectively called pesos fuertes (PF), Spanish for "strong pesos." 

The first bank notes (or paper money) in the Philippines had the issue date May 1, 1852 and could be redeemed in Mexican coins in gold or silver. Apart from carrying the name of the Bank as issuer of the currency, the bank notes also bore the portrait of the woman for whom the bank was named –- Queen Isabella II. 

Coincidentally, the first transaction of the Bank was a lending transaction recorded on May 1, 1852, in which the Bank discounted a promissory note from a Chinese client. Three days later, the Bank recorded its first deposit from its first depositor. 

On September 3, 1869, the Bank officially dropped the name of the queen after she was ousted from the Spanish throne during a revolution a year earlier. Like her father's reign, Isabella's rule had been stormy. Hence, since 1869, the Bank was known simply as El Banco Español Filipino. 

Decades later, the management of the Bank decided to move out to where the business activity was. Binondo, on the northern side of the Pasig River, had emerged as the new center of business growth and, thus, gained more economic prominence than Intramuros. 

The Chinese dominated the retail traffic while British merchants controlled the export-import business. Rosario Street (now Quintin Paredes) became the center of retail business while Escolta was the place for the finest of American and European shops. These were profitable sources of new business for El Banco Español Filipino after it relocated to No. 4 Plaza Cervantes in Binondo in January of 1892 on a piece of land acquired from the Dominican Order. 

Through the years, the Bank had a close link with the Spanish Crown that even the establishment of its first branch had to be approved by authorities in Madrid. In fact, it took a royal order in 1896 to enable the Bank to open branches, although, again, this authority was still subject to clearance by Spain's minister of the colonies. 

The Bank originally planned to open its first branch in Central Luzon during the first decade of its operations, which was sometime in the 1850s. The reason for this was the emergence of the region as a sugar-producing area. During that time, sugar was exported from this region, making the product a major source of income for local producers. 

But the plan to put up this first branch did not materialize. By the time the Bank was ready in 1897, Central Luzon had been...

Other Papers Like Philippine Banking

Chapter 9 the Philippine Society Under the American Rule

3669 words - 15 pages CHAPTER 9 THE PHILIPPINE SOCIETY UNDER THE AMERICAN RULE Having proclaimed that the Philippines will be kept by the United States, President McKinley started the task of governing the colony. In his address before the 4th session of the 76th U.S. Congress, McKinley stated America’s aims concerning the Philippines. “The Philippines is ours not to exploit, but to develop, civilize, educate, and to train in the science of self-government.” In

One, Two, Three Essay

3176 words - 13 pages opposition from vested interests and "nationalist" blocs. A major obstacle has been and will continue to be constitutional restrictions on, among others, foreign ownership of land and public utilities, which limits maximum ownership to 40%. Over the last two decades, the relatively closed Philippine economy has been opened significantly by foreign exchange deregulation, foreign investment and banking liberalization, tariff and market barrier

Summary Of Elpi

597 words - 3 pages , setting up of the Central Bank and rural banking, and concluding peace with Japan. It was also during his term that the RP-US Mutual Defense Treaty was forged on August 30, 1951.During his term, the Philippine government faced a serious threat in the form of the Communist-led Hukbalahap (Huk) movement. The Huks originally had been an anti-Japanese guerrilla army in Luzon. However, the Communists steadily gained control over the leadership and

Predictive Valuation of Oil in the Philippines

3789 words - 16 pages market basket of consumer goods and services. It is based on the expenditures of almost all residents of urban or metropolitan areas, including professionals, the self-employed, the poor, the unemployed, and retired people, as well as urban wage earners and clerical workers. On March 3, 2012, the Philippine Daily Inquirer reported, quoting British banking giant HSBC that, “as a net importer of oil, the Philippines face the risk of importing

Course Outline On Capital Market Management

746 words - 3 pages . Mishkin, Frederick S.( 2008). Understanding the Economics of Money, Banking and Financial Markets(8th ed). Pearson Educational South Asia Pte Ltd. Moyer, C. et al (2006) Contemporary Financial Management Fundamentals.Singapore: South-Western. Nograles et al (2005) Essentials of Investments in the Philippines Capital Market 7th ed. USA. Mc. Grawhill Websites: The Philippine Stock Exchange


1451 words - 6 pages . In the third quarter of last year, the overnight borrowing and overnight lending rates were raised to anchor inflation. The next rate-setting meeting has been slated for May 14. PNB Savings Bank boosts net worth to P11 B By: Ted P. Torres (Updated April 21, 2015 – 12:00 am) MANILA, Philippines - PNB Saving Bank is poised to join the ranks of the major thrift banks in the Philippine banking system, starting with a

International Fin Man Report-the Philippines

5850 words - 24 pages -manufacturing companies were under the control of a single firm. Despite manufacturing being one of the largest sectors within the Philippines, the country shows a lopsided and biased approach towards wealthy companies thus showing another example of a third world, two tiered society [Appendix D] ( The Banking System The Philippine financial system in the early 1990s was composed of banking institutions and non

Joy Dishwashing

2098 words - 9 pages Philippine conglomerate has interests in packaging plants, real estate development, petrochemicals, and banking and financial services. Its Universal Robina unit makes and sells consumer foods, animal feed, and animal health items. JG Summit's real estate arm, Robinsons Land Corporation, develops commercial and residential properties and manages hotels. Its listed Digital Telecommunications Philippines (aka Digitel) subsidiary provides wireless

Chapter Review

1812 words - 8 pages Presented to: JIMA A. DE LEON, B.S.I.M., M.B.A School of Graduate Studies Central Philippine University Jaro, Iloilo City Chapter Two and Three of Mishkin’s The Economics of Money, Banking and Financial Market Chapter Review Faculty, College of Business and Accountancy Graduate Programs Central Philippine University Iloilo City In partial fulfilment Of the Course Requirements In Philippine Financial System MBA 612a Presented by: JOYNEN A

Companies Awarded By Pqa

5492 words - 22 pages Companies Awarded by Philippine Quality Awards San Miguel Yamamura Asia Corporation (SMYAC) - a joint venture company of San Miguel Corporation (SMC) and Nihon Yamamura Glass Co., Ltd. (NYG) - is the country's major manufacturer of glass bottles. Inaugurated in July 1991, it started commercial operations in July 1992. SMYAC designs and produces glass bottles for the food, beverage, spirit, and pharmaceutical industries - both for domestic and

Pantawid Pampamilyang Pilipino Program

2442 words - 10 pages This article is an orphan, as no other articles link to it. Please introduce links to this page from related articles; suggestions may be available. (December 2012) | Pantawid Pamilyang Pilipino Program or 4Ps (formerly Ahon Pamilyang Pilipino) is aconditional cash transfer program of the Philippine government under the Department of Social Welfare and Development.[1] It aims to eradicate extreme poverty in the Philippines by investing in heath

Related Essays

Bitter Gourd Essay

2289 words - 10 pages History 1900 | Act No. 52 was passed by the First Philippine Commission placing all banks under the Bureau of Treasury. The Insular Treasurer was authorized to supervise and examine banks and banking activities.  |   |   | February 1929 | The Bureau of Banking under the Department of Finance took over the task of banking supervision. |   |   | 1939 | A bill establishing a central bank was drafted by Secretary of Finance Manuel Roxas

Bpi Competitive Advantage Essay

1515 words - 7 pages to promote itself as a dynamic institution that caters to its various clients, which hail from various sectors of Philippine society. BPI also pioneered rural banking in the Philippines, as its countryside banking operations preceded that of many other banks' rural banking operations by many years. Today, it maintains a large rural branch network, with some branches dating back to the Spanish or American colonial periods. Its branch network of

Effectiveness Of Credit Risk Management On The Financial Performance Of Philippine Universal Banks

1604 words - 7 pages . Studies of banking crises all over the world have shown that poor loans (asset quality) are the key factor of bank failures. In one of the published report of Asian Banker Research (2011), Philippine banks are considered to have high consumer risk and slow loan demand. It only means that most of the Philippine banks are still slow on the growth level of their lending portfolio because of the gradual improvement in risk management and

Global Banking Essay

2083 words - 9 pages constitute a major part of the Philippine financial system. These global financial institutions consider our country a good market foe lending and even participate actively in the affairs of the Philippine financial system. They have their branches, offshore banking units and shares in domestic financial institutions. - Because of their huge credit facilities, they can dominate the Philippine financial system, and even the whole economy