Review Of Literature
Review of Literature
The Concept of Universal Banks and Status of Philippine Banking System Based from the Republic Act No. 8791, “Banks” shall refer to entities in the lending of funds obtained in the form of deposits. One of the classified banks is universal banks. In accordance with Zafar (2012), universal bank, in a general perception, is a financial institution offering commercial as well as investment banking services which also include services related to savings, loans and investments. Universal banking, in real sense, offers a wide range of financial services, beyond commercial banking and investment and investment banking and various other activities including insurance. The emergence of universal banks is due to its effective features, efficient economic services, high output, lower cost and better products and services. Its large size feature and distinguished operations give the economy the optimal utilization of resources and the advantage of brand name in marketing. In about more than 700 banks in the Philippines, ranging from rural banks to universal banks, the Oxford Business Group (2012) classified five largest banks based on total assets. Given the global economic slowdown that tried to hit most of the banks in the Philippines, the following universal banks are stable in terms of capital adequacy ratio (CAR) and liquidity. BDO Unibank (BANCO DE ORO UNIBANK) is a full-service universal bank, a member of the SM Group of Companies and the country’s largest bank in terms of total resources, customer loans, total deposit and assets. Its merger with Equitable PCI Bank last 2006, made its mark to be on top. Metropolitan Bank (Metrobank) which was established since 1962 ranked as second-largest bank in terms of total assets. This unibank is continuously expanding internationally, with its subsidiary, Metropolitan Bank China which was inaugurated last 2010. Bank of the Philippine Islands (BPI) is considered the oldest bank in the Philippines
The Concept of Universal Banks and Status of Philippine Banking System Based from the Republic Act No. 8791, “Banks” shall refer to entities in the lending of funds obtained in the form of deposits. One of the classified banks is universal banks. In accordance with Zafar (2012), universal bank, in a general perception, is a financial institution offering commercial as well as investment banking services which also include services related to savings, loans and investments. Universal banking, in real sense, offers a wide range of financial services, beyond commercial banking and investment and investment banking and various other activities including insurance. The emergence of universal banks is due to its effective features, efficient economic services, high output, lower cost and better products and services. Its large size feature and distinguished operations give the economy the optimal utilization of resources and the advantage of brand name in marketing. In about more than 700 banks in the Philippines, ranging from rural banks to universal banks, the Oxford Business Group (2012) classified five largest banks based on total assets. Given the global economic slowdown that tried to hit most of the banks in the Philippines, the following universal banks are stable in terms of capital adequacy ratio (CAR) and liquidity. BDO Unibank (BANCO DE ORO UNIBANK) is a full-service universal bank, a member of the SM Group of Companies and the country’s largest bank in terms of total resources, customer loans, total deposit and assets. Its merger with Equitable PCI Bank last 2006, made its mark to be on top. Metropolitan Bank (Metrobank) which was established since 1962 ranked as second-largest bank in terms of total assets. This unibank is continuously expanding internationally, with its subsidiary, Metropolitan Bank China which was inaugurated last 2010. Bank of the Philippine Islands (BPI) is considered the oldest bank in the Philippines