How Is the Philippine Financial System Structured?

The Philippine financial system is structured by type of bank including universal, commercial, savings and cooperative banks, according to statistics compiled by from noted bank adviser Paul Sheehan. Although the country’s banking system primarily consists of rural and thrift banks, universal and commercial banks account for larger market shares.

Universal and commercial banks make up less than 5 percent of the total banking institutions in the Philippines but account for a much larger portion of the market share, explains data from Universal and commercial banks differ from other banking institutions by offering a wider variety of financial services, according to Investopedia. In the Philippines, these banks have asset values of over 3 trillion pesos, making up over 90 percent of the banking market share in the country.

The Philippine financial system consists mainly of rural banks, which make up the majority of total banking institutions, notes Rural banks provide credit to farmers and agricultural-related businesses, according to Investopedia. These banks, along with cooperative banks that provide similar services, have the lowest asset values and market shares relative to universal and commercial banks. However, rural and cooperative banks have higher yearly growth rates than universal and commercial banks combined.