CLASSIFICATION OF BANKS MATRIX
A Banking and Finance Output
KINDS OF
BANKS
MINIMUM
CAPITALIZATION
PURPOSE/
OBJECTIVE
Head Office
• 3 Billion Pesos
UNIVERSAL
BANKS
WHO CAN
BE
DIRECTORS
• Can create and
accept demand
deposits
without
separate
authority
• Perform quasibanking
functions
• Investment
house
functions
Up To 10
Branches
• 6 Billion Pesos
11-100 Branches
• 15 Billion
Pesos
>100 Branches
20 Billion Pesos
Head Office
• 2 Billion Pesos
COMMERCIAL
BANKS
POWERS/
FUNCTIONS
11-100 Branches
• 10 Billion
Pesos
NECESSITY
OF PUBLIC
OFFERING
GOVERNING
LAWS
YES
General
Banking Law
(Republic
Act No.
8791)
NO
General
Banking Law
(Republic
Act No.
8791)
NO
Rural Bank
Act
(R.A. 7353 as
amended by
R.A. No.
10574
NO
Cooperative
Code
(R.A. No.
6938
amended by
R.A. No.
9520)
NATURAL
PERSONS
• Can create and
accept demand
deposits
without
separate
authority
• Perform quasibanking
functions
Up To 10
Branches
• 4 Billion Pesos
INCORPORATORS
NATURAL
PERSONS
>100 Branches
15 Billion Pesos
RURAL BANKS
Hasten rural
developments
COOPERATIVE
BANKS
Provide
financial,
banking and
credit services
to
cooperative
organizations
and their
members
Can be organized
by cooperatives
& corporations to
hold equities
Public
officers
may be
directors
NATURAL
PERSONS
THRIFT
BANKS
NATURAL
PERSONS
NO
ISLAMIC
BANKS
NATURAL
PERSONS
NO
Thrift Banks
Act
(R.A. No.
7906
Charter of Al
Amanah
Islamic
Investment
Bank of the
Philippines
(R.A. No.
6848)
Note: General Banking Law is Suppletory to banks other than universal and commercial provided GBL provisions are not in conflict with
the former laws
Reference: Aquino, T. B. and Aquino, M.A., Fundamentals of Banking Law 2019 Edition
Submitted by: Stephanie Joan G. Badillo, JD2-LO2
Submitted to: Atty. Annabelle S. Palic, Professor, Banking and Finance
Date: March 23, 2021