BANKING AFFAIRS

Detailed explanation-1: -The Philippines is a dynamic economy with a relatively smaller financial system than other Asian emerging market economies, dominated by banks. The total assets of the system amount to 126 percent of GDP. However, bank credit is just over 50 percent of GDP and mostly goes to nonfinancial corporates (NFCs).

Detailed explanation-2: -The Philippine financial system carries a moderate risk of being used for money laundering, terrorist financing and as conduit for funding weapons of mass destruction, according to the results of the latest multisectoral assessment done by the central bank.

Detailed explanation-3: -Banks in the Philippines are classified into (1) universal banks, (2) commercial banks, (3) thrift banks, (4) rural banks, (5) cooperative banks, (6) Islamic banks, (7) government-owned banks and (8) other banks as may be classified by the Bangko Sentral ng Pilipinas (BSP).

Detailed explanation-4: -There are currently 43 universal and commercial banks, 57 thrift banks, 492 rural banks, 40 credit unions, and 6, 267 non-banks with quasi-banking functions in the Philippines.