The

Monetary System
INTRODUTION

BUSINESS FINANCE
INTRODUTION TO FINANCE
What is Finance?
WHAT IS FINANCE
FINANCIAL INSTITUTIONS
FINANCE
Are organization or
Is the study of how
intermediaries like banks,
individuals, institution, insurance companies and
governments and investment companies.
businesses acquire, They engaged in financial
spend and manage activities to aid the flow of
money and other funds from savers, to
financial assets. borrowers or investors.

FINANCIAL FINANCIAL MANAGEMENT

IncludesENVIRONMENT
the financial
system, institutions, INVESTMENT
Involves the sale or
markets and marketing of securities, the
individuals that make analysis of securities and
the economy operate the management of
efficiently investment risk. Investors
include saver and lenders as
well as ezuity investors.
Investors can be corporate
of peronal.
FINANCIAL MARKET
Are physical or electronic
forums that facilitate the
flow of funds among
investors, businesses, and
investors
Involves financial planning,
asset management and
fundraising decisions to
enhance the value of
businesses. This involves
decision making relating to
the efficient use of
financial resources in the
production of sale of goods
and services.
Three Areas of Finance

Institution Financial Investment

01 and Markets 02 Management 03
Why study Finance?
 To make informed economic and
financial decisions. Every individual
should attain basic understanding of
economics and finance as it applies to
the financial system. In doing so, an
individual can became economically and
financially literate.
 To acquire a basic knowledge of
investment for business and personal
reasons. An understanding of
investments will enable a person to
FINANCE better mange financial resources for his
company and for himself.
 To acquire basic understanding of
financial management. Through an
understanding of financial management.
Through an understanding of financial
management, it is possible for an
individual to seek a career in finance or
related areas.
The Financial System and
their Financial Institution
Financial Systems and their Financial
Function

Monetary Financial Financial

System Institutions Market
Is responsible for Are financial
creating and instruments and
transferring Accumulate or securities created
money. The gather savings. and sold in the
monetary system When deposit primary
creates money are securities market.
serves as medium accumulated Several types od
of exchange. This financial
they can be
money can be institutions
used by
used for loans facilitate or assist
individuals and and investment in the process of
businesses to buy lending and
goods and selling securities.
services
 HISTORY OF FINANCIAL SYSTEM IN THE PHILIPPINES

THE SPANISH PERIOD THE AMERICAN PERIOD THE JAPANESE OCCUPATION

THE NEW SOCIETY PERIOD THE POST WAR INDEPENCE

PERIOD
 THE SPANISH PERIOD
The OBRAS PIAS represented the first organized institution in the Philippines
which began to be established in 1854. The Church directed a share of
personal fortunes to its charities. Donors had specified that the funds are to
be used for charitable, religious and educational purposes
“Banco Espanol-Filipino de Isabel II” the first bank in the far east established
in 1851
October 17, 154 Banco Espanol-Filipino was granted to issue notes by a royal
decree
On august 2, 1882 the first saving banks in the country was founded by
Father Felix Huertas and named “Monte de piedad y Caja de Ahorros de
manila”
A branch of Banco de Peninsula Ultramarino of Madrid was also opened only
within short span of 4 years
 The American
Period
1906, Postal savings bank was created as a
division of the bureau of posts to promote the
habit of the thrift among the people and to
bring banking to the rural areas.
American Bank 1901 which operated for four
years
 The Japanese
Period
The entry of Japanese Imperial in Manila on
January 2, 1942
The southern development bank “Nampo
Kaihatsu kindo” opened branch in manila 1942
acted as fiscal agent of Japanese government in
the Philippines.