NON-BANK

FINANCIAL
INSTITUTIONS

Scope

Government Non-Bank Financial

Institutions
Pawnshop
Building and Loan Associations, NonStock Savings and Loan Associations
Private Insurance Companies
Investment Companies
Investment Houses and Securities
Brokers/Dealers

Government Service Insurance System or GSIS

Social Security System or SSS

Government Non-Bank
Financial Institutions

GSIS
Objectives:
1. To promote efficiency and welfare of
government employees
2. To help the Filipino government
employee when he cannot or can no
longer help himself or his family
3. To pay out any and all rightful insurance
claims to its policy holders when these
are due

GSIS
Functions
1. Primary Functions provide social
insurance in the form of:
a. Life insurance benefits
b. Retirement benefits
c. Disability benefits
d. Medicare benefits
e. Survivors benefits

GSIS
Functions
2. Secondary functions to provide
financial assistance to GSIS members:
a. Policy loans
b. Salary loans
c. Educational assistance loans
d. Sale of housing units

GSIS
Functions
3. Supportive functions to engage in other
businesses like:
a. Investment in loans
b. Investment in stocks, bonds, treasury, and

promissory notes and more secure instruments

such as government and private securities and
money market placements
c. Production and sale of non-compulsory insurance
policies
d. General insurance and reinsurance businesses

SSS

Compulsory Coverage
All employers
All employees in the private sector who are not

yet sixty one years old

All self-employed who are not yet sixty one years
old

Voluntary coverage
Foreign government, international, governmental

organization employing working in the Philippines

OFWs

SSS

Benefits
Sickness benefit
Maternity benefit
Disability benefits
Retirement benefits
Death benefits

Loans
Salary loan
Education loan

Pawnshops

What is a pawnshop?

Refers to a person or entity engaged in

the business of lending money on
personal property delivered as security
for loans
Pawner borrower from a pawnshop
Pawnee pawnshop or pawnbroker
Pawn personal property delivered by the

pawner to the pawnee as security for a loan

Pawn ticket pawnbrokers receipt for a
pawn

Lending Operations

Loanable amounts must not be less than

30% of appraised value of the security
Security can be physically delivered to
the control and possession of the
pawnee
Guns, knives and similar weapons are
unacceptable as security

Building and Loan

Associations, Non-Stock
and Loans Associations

Building and Loan Associations

Refer to all corporations whose capital

stock is required or is permitted to be
paid in by the stockholders in regular,
equal periodical payment

Building and Loan Associations

Purpose:
To repay to stockholders their accumulated

savings and profits upon surrender of shares

To encourage industry, frugality and home
building
To loan its funds to stockholders on the
security of unencumbered real estate and
with pledge of shares of the capital stock

Non-Stock Savings and Loan

Association

Any corporation engaged in the

business of accumulating the savings of
its members.
It is not authorized to transact business
with the general public, but accepts
deposits from, and grant loans to its
member depositors.

Private Insurance
Companies

Insurance Company

A mechanism for distributing equitably

losses among a large number of
persons who are subject to a particular
risk.

Insurance Commission

The governmental agency that exercises

supervision and regulation over the
operation and formation of entities that
will engage in the business of insurance
in the Philippines.

Investment
Companies

Investment Companies

Financial institutions that raise funds in

the capital market by selling their own
issues of securities mainly by common
stocks to individual investors
What is a capital market?
A place where long-term instruments of

finance are bought and sold

Investment Houses
and Securities
Brokers/Dealers

Investment Houses

Any enterprise which engages in the

underwriting of securities of other
corporations

Underwriting

The act or process of guaranteeing the

distribution and sale of securities of any
kind issued by another corporation

Securities

Written evidences of ownership, interest,

or participation in an enterprise
Written evidences of indebtedness of a
person or enterprises
Bonds
Debentures
Notes
Stocks

Powers of Investment
House

Arrange to distribute on a guaranteed

basis securities of other corporations
and of the government
Act as financial consultant, investment
adviser or broker
Act as portfolio manager and/or financial
agent

Securities
Brokers/Dealers

Broker any person engaged in the

business of effecting transactions in
securities for the account of others but
does not include bank
Dealer any person engaged in the
business of buying and selling securities
for his own account, through a broker or
otherwise