Published: July 15, 2020 | Updated: July 29, 2020 | Posted by: Moneymax | Personal Finance
Do you need to open a savings account for safekeeping? Or do you need a personal loan to finance a big-ticket expense? Or perhaps you want a credit card? A commercial bank can help you with these needs.
Commercial banks are the typical banks we see every day. It is basically where we do most of our banking. Keep on reading to learn more about commercial banks and the type of products and services they offer.
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A commercial bank is a type of financial institution where most people do their banking. Commercial banks are financial institutions that accept deposits, offer checking account services, and make various loans. They also have products like savings accounts for individuals and small businesses as well as certificates of deposit (CDs).
These banks profit from the loans they provide consumers, earning an interest income. The loans commercial banks offer may vary but may include home loans, car loans, and personal loans. The capital used for these loans is sourced through customer deposits like checking and savings accounts.
For instance, if you deposit money into a savings account, you are effectively lending money to the bank. You will be paid interest for the money you deposited. However, this interest rate may be less than the rates the bank charged on the money they lend.
In the Philippines, commercial banks are regulated by the Bangko Sentral ng Pilipinas (BSP). The BSP imposes various conditions and prescribes the minimum level of capitalization of banks.
Investment banks cater to large institutions to manage their money. These banks help large companies create capital and underwrite debts. They also assist in mergers and acquisitions. An investment bank can also help a large entity to help connect with investors through issuing of bonds or stocks.
On the other hand, commercial banks provide financial services to individuals and small businesses. They offer loans, deposit banking, and wealth management. This is where we do most of our banking.
In the Philippines, commercial banks offer various products and services to consumers and businesses. Some of them are:
You can go to a commercial bank to put your money for safekeeping. You can open savings, checking, or time deposit accounts, depending on your needs.
You can also get a credit card from a commercial bank, whether you are a first-time cardholder or not. This card lets you spend money via credit for goods and services.
You can apply for various loans offered by a commercial bank. Some of the loan types that may be offered are car loans, mortgages, personal loans, and business loans.
Commercial banks offer this service to help clients make better use of their funds. Enterprises are the usual clientele of this type of service.
You can also get different insurance policies in commercial banks. Insurance can protect you from financial losses caused by unexpected events and emergencies.
Commercial banks also offer wealth management to their clients. It is an investment advisory service that combines different financial services to address your particular need.
Here are some of the top commercial banks in the country:
AUB started as a joint venture between Filipino industrialists and Taiwanese investment banks. It was granted the authority to operate as a commercial bank by BSP’s Monetary Board in 1997.
Bank of Commerce is the 15th largest bank in the country in terms of assets. It is a subsidiary of San Miguel Corporation.
BDO Unibank was established in 1968 as Acme Savings Bank. It was later acquired by the SM Group. It has over a thousand operating branches in the Philippines.
The Bank of the Philippine Islands has been around since 1851. It is one of the leading commercial banks in the country, offering various products and services to customers.
China Banking Corporation, also known as Chinabank, was founded in 1920 in the Philippines. It is a member of the SM Group.
CIMB Bank Philippines is an all-digital bank with over two million customers since its creation in 2018. It was named International Finance’s 2020 Best New Digital Bank Philippines.
Citibank Philippines is the largest foreign commercial bank in the country. This commercial bank offers corporate banking, treasury, and consumer products and services.
DBP provides development banking, financing, management, and remittance services to agricultural and industrial enterprises.
Deutsche Bank is a leading German bank with a global network. It gained a full commercial banking license in the Philippines in 1995.
A subsidiary of the Filinvest Development Corporation, EastWest Bank was the first recipient of a commercial banking license after the central monetary authority liberalized banking in the 90s.
The Hongkong and Shanghai Banking Corporation (HSBC) is a British banking institution that has been in the Philippines since 1875. It serves over 40 million customers worldwide.
ING operates in more than 40 countries and has been in the Philippines since 1990. It offers digital banking services through its mobile app.
Land Bank is a government financial institution founded in 1963. It focuses on serving farmers and fishermen.
Maybank is a Malaysian universal bank that has been in the Philippines since 1997. For 2015-2016, it was named Brand of the Year, National Tier by the World Branding Awards.
Metrobank is the second largest bank in the Philippines. More than 48% of the company is publicly owned.
The Philippine Bank of Communications or PBCom was established in 1939. It offers financial services such as deposit and corporate banking, cash management, and investment.
Established in 1916, PhilTrust is one of the oldest banking institutions in the country. It has branches in Metro Manila and major cities in Luzon, Visayas, and Mindanao.
Owned by World War II veterans, this commercial bank’s services cater to the retail and corporate financial markets. It has 60 branches nationwide.
The Philippine National Bank (PNB) is a private universal bank founded in July 1916. It was the first bank in the country to reach the PHP 100 billion mark in assets in 1996.
RCBC started as a development bank in the 1960s. It is now one of the biggest commercial banks in the country, with over PHP 77 billion of total consolidated resources as of the end of 2019.
This commercial bank is the financial services arm of the JG Summit Group of Companies. It started as a savings bank in the 90s during the Asian financial crisis.
This financial institution’s businesses include retail, commercial, and corporate banking. In 2012, Security Bank was named Bank of the Year—Philippines by The Banker of the Financial Times of London. It is one of the most popular commercial banks in the Philippines.
Standard Chartered was the first foreign bank established in the country in 1872. It was given the universal bank status by BSP’s Monetary Board in 2001.
UnionBank has 200 branches in the country, with over five million customers. It started as Union Savings and Mortgage Bank in 1968, making it one of the most established banks in the country.
Formerly known as Cocobank, UCPB was established in the 60s as First United Bank (Philippines). Today, it is one of the largest commercial banks in the country with over a hundred branches nationwide.
Commercial banks provide convenient financial solutions to both consumers and small businesses. With a commercial bank, you can deposit your money for safekeeping. You can also get credit cards, insurances, and loans for your needs. Be aware of your options when finding the right bank for you.
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