Represent the largest single group, resource-wise, of financial institutions in the country. They offer the widest variety of banking services among financial institutions. In addition to the function of an ordinary commercial bank, universal banks are also authorized to engage in underwriting and other functions of investment houses, and to invest in equities of non-allied undertakings.

Investment House any enterprise which engages or purports to engage in underwriting of securities, may it be private or of the Government.

Underwriting is the practice by which investment bankers represent corporate and government entities in the initial pubic offering of their securities.

Offers the same variety of banking services offered by a universal bank. However, it cannot engage in underwriting and other functions of an investment house.Underwriting assessment of the credit worthiness of borrowers and agreeing to fund loans.Equity the value of an asset after all the liabilities or debts have been paid.

Rural and cooperative banks are the more popular type of banks in the rural communities. Their role is 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. They are differentiated from each other by ownership. While rural banks are privately owned and managed, cooperative banks are organized/owned by cooperatives or federation of cooperatives.

Commonly found in far-flung areas that cannot be reached by bigger banking institutions. These privately-owned banks provide basic financial services to the small but growing economies in the countryside. More often than not, the rural banks are the ones helping farmers through the stages of production--from providing loans for inputs and irrigation to harvest.

Thrift banking system is composed of savings and mortgage banks, private development banks, stock savings and loan associations and microfinance thrift banks. Accumulates the savings of its depositors and invests it. Most thrift banks are known to provide short-term working capital, and medium- and long-term financing to businesses engaged in agriculture, services, industry, housing and allied services, especially to small and medium enterprises.

They also provide short-term working capital and medium- and long-term financing to businesses engaged in agriculture, services, industry and housing, and diversified financial and allied services, and to their chosen markets and constituencies, especially small- and medium- enterprises and individuals.

RA No. 6848 Al-Amanah Islamic Investment Bank of the PhilippinesEquitable and Beneficial ShareExclusive of riba or interest prohibitionsGoverned by the Islamic ShariaExistence of non-interest bearing bondsFinancing of Mudarabah Operations

Capitalization: Different minimum Capitalizations.Purpose: Specific purposes and societal functions.Powers: Upon approval of the Monetary Board.Officers: Public officers can be a director of a Rural Bank.Incorporators: Natural Persons except Rural banks which could be organized by cooperatives.

RA No. 10641 - allows foreign banks to operate within the Philippine banking system by (1) acquiring, purchasing, or owning up to 100 percent of the voting stock of an existing bank, (2) byinvestingin up to 100 percent of the voting stock of a new banking subsidiary incorporated under Philippine laws, or (3) by establishing branches with full banking authority.Republic Act No. 10574 (An Act Allowing The Infusion Of Foreign Equity In The Capital of Rural Banks)

Foreign Banks shall be allowed to bid and take part in foreclosure sales of real property mortgaged to them, as well as to avail of enforcement and other proceedings, and accordingly take possession of the mortgaged property, for a period not exceeding five years from actual possession.

Title to the property shall not be transferred to such foreign bank.

Foreign Banks should transfer its rights to a qualified Philippine national, without prejudice to a borrowers rights under applicable laws. Should the bank fail to transfer such property within the 5-year period, it shall be penalized one half of 1 percent per annum of the price at which the property was foreclosed until it is able to transfer the property to a qualified Philippine national.

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