History of Asia

The history of Philippine Banking System?

A Brief History of the Philippine Banking System:

Pre-Colonial Period (Before the 16th century):

- Native Filipinos used bayani system in which trusted individuals called bayanis took care of their wealth and valuables.

Spanish Colonial Period (16th to 19th century):

- Spanish introduced formal banking through the Royal and Pontifical University of Santo Tomas.

- Religious orders established charitable institutions that offered basic banking services.

-Banco Español-Filipino (1851): The first bank established in the Philippines.

American Colonial Period (Early 20th century):

- Philippine Bank (1916): First Philippine-owned private commercial bank.

-Philippine National Bank (1916): Government-owned bank aimed to develop the country's economy.

Philippine Commonwealth (1935 - 1946):

- Banking Act of 1935: Regulated banking industry and created the Office of the Insurance Commissioner.

-Central Bank of the Philippines (1948): Established as the country's central monetary authority and regulator.

Post-Independence (1946 - Present):

- Rapid expansion and liberalization of the banking sector.

- Deregulation of foreign exchange in the 1990s led to the entry of foreign banks.

- Banking industry challenges like financial crisis, political instability, and technological disruptions.

- Modern banking innovations such as digital banking and mobile payments have shaped the industry in recent years.