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Non-Bank Financial Institutions (NBFI)

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Non-Bank Financial Institutions (NBFI) ... The loans granted by a credit union are in cash and used to finance provident and other members needs. – PowerPoint PPT presentation

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Title: Non-Bank Financial Institutions (NBFI)


1
Non-Bank Financial Institutions(NBFI)
2
  • These are other financial institutions which
    engage in specific functions. They provide
    services related to claims, financial information
    and advice, manage portfolios of financial assets
    on behalf of other economic units, buy and sell
    claims on institutions from clients, and assist
    in finding sources for those economic units
    seeking loans.

3
Private Non-Bank Institutions
  • Investment House/Bank
  • Any enterprise which engages in the underwriting
    of securities of other corporations.
  • Underwriting is the act or process of
    guaranteeing the distribution of securities of
    any kind issued by another corporation.
  • Securities Brokers/Dealers
  • Broker is a person engaged in the business of
    buying and
  • selling securities for the account of others.
  • Dealer means any person who buys and sells
    securities for his/her own account in the
    ordinary course of business.
  • (Securities Regulation Code of the Philippines)

4
Private Non-Bank Institutions
  • Building and Loan Associations
  • Special type of savings institution.
  • Its purpose is to accumulate savings and profits
    upon surrender or stockholder shares to
    encourage industry, frugality, and home building
    among its stockholders and to loan its funds.
  • HomeCredit Mutual Building Loan Association is
    a wholly owned subsidiary of The Insular Life
    Assurance Co., Ltd.

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  • Credit Unions
  • Savings institution
  • Its purpose is the inculcation of the habit of
    thrift, frugality, and the idea of helping one
    another.
  • A credit union almost approximates a building and
    loan association in the payment of membership
    fees. Together with the membership fee, the
    member pays the fixed deposit which serves as his
    share of the credit unions capital. The loans
    granted by a credit union are in cash and used to
    finance provident and other members needs.
  • Besides the fixed deposit which can only be
    withdrawn upon separation from the union and
    which earns dividends, there is also the savings
    deposit which a member must put in regularly.

8
  • Private Insurance Companies
  • Contribute to the countrys socio-economic
    development as well as to the insured.

9
  • Pawnshops
  • Provide credit to small borrowers who are not
    qualified to obtain small loans from other
    financial institutions.
  • Cost of borrowing and terms of payment are
    generally fair making it as one of the components
    of the countrys financial system that plays a
    vital role in socio-economic development.
  • Compared with banks, pawnshops do not impose as
    many documentary requirements before releasing
    cash to customers. Moreover, the latter are more
    accessible, as they may be found even in remote
    areas where banks do not operate.
  • As of December 2012, the pawnshop industry has a
    network of nearly 17,000, which include head
    offices and branches. Of the number, about 10,000
    are engaged solely in the pawning business. The
    rest also operate auxiliary businesses, such as
    money changing, remittance facilitation, and
    bills payment facilitation.

10
  • Trust Companies
  • Formed for the purpose of acting as trustee or
    administering any trust or holding property in
    trust or on deposit for the use, benefit, or
    behoof of others.

11
  • Non-Stock Savings and Loan Associations
  • a corporation organized primarily for mutual
    self-help and common interest of its members who
    must belong to a well-defined group and shall not
    transact business with the general public (NSCB)
  • Engaged in the business of accumulating the
    savings of its members.
  • Meralco Employees Savings and Loan Association,
    Inc. (MESALA)
  • BJMP Savings and Loan Association
  • Armed Forces and Police Savings and Loan
    Association, Inc., (AFPSLAI)

12
  • Financing Companies
  • Organized for the purpose of extending credit
    facilities to consumers and to industrial,
    commercial, or agricultural enterprises. They
    operate by discounting or factoring commercial
    papers or accounts receivables, or by buying and
    selling contracts, leases, chattel mortgages, or
    other evidences of indebtedness, or by leasing
    motor vehicles, heavy equipment and industrial
    machinery, business and office machines and
    equipment, appliances, and other movable
    properties.

13
Government NBFIs
  • Social Security System

Social Security Act of 1997
Social Security Act of 1954
14
Who are covered?
  • Self-Employed
  • A self-employed person, regardless of trade,
    business, or occupation, with an income of at
    least 1,000Php a month and not over 60 years old,
    should register with the SSS. Included, but not
    limited to be the following self-employed
    persons
  • Self-employed professionals
  • Single proprietors
  • Actors, actresses, directors, scriptwriters, news
    reporters, etc
  • Professional athletes, coaches, trainers, and
    jockeys
  • Farmers and fisher folds and
  • Workers in the informal sector (cigarette
    vendors, hospitality girls, etc.)

15
Who are covered?
  • Voluntary
  • Separated Members
  • Separated from employment or ceased to be
    self-employed/OFW/non-working spouse and would
    like to continue contributing
  • OFWs
  • Filipino recruited in the Philippines by a
    foreign-based employer for employment abroad or
    one who legitimately entered a foreign country
    (i.e. tourist, student, etc) and is eventually
    employed.
  • Non-Working Spouses of SSS Members
  • Legally married to a currently employed and
    actively paying SSS member, and who devotes full
    time in the management of household and family
    affairs, may be covered on a voluntary basis
    provided there is a the approval of the working
    spouse.

16
Who are covered?
  • Employees
  • Private employee, whether permanent, temporary or
    provisional, who is not over 60 years old.
  • Household-helper earning at least 1,000Php a
    month is compulsory covered
  • A household-helper is any person who renders
    domestic services exclusively to a household
    such as driver, gardener, cook, governess, and
    other similar occupations.
  • Filipino seafarer upon the signing of the
    standard contract of employment between the
    seafarer and the manning agency which, together
    with the foreign ship owner, act as employers.
  • Employee of a foreign government, international
    organization or their wholly-owned
    instrumentality based in the Philippines, which
    entered into an administrative agreement with the
    SSS for the coverage of its Filipino workers.
  • Parent, spouse or child below 21 years old of the
    owner of a single proprietorship business.

17
Who are covered?
  • Employers
  • An employer, or any person who uses the services
    of another person in business, trade, industry or
    any undertaking.
  • A social, civic, professional, charitable, and
    other non-profit organization which hire the
    services of employees are considered employers.
  • A foreign government, international organization
    or its wholly-owned instrumentality such as
    embassy in the Philippines, may enter into an
    administrative agreement with the SSS for the
    coverage of its Filipino employees.

18
  • Member Loans
  • Housing Loans
  • Business Loans

LOANS
19
  • Sickness Benefit
  • Retirement Benefit
  • Disability Benefit
  • Maternity Benefit
  • Death and Burial Benefit

Benefits
20
Government NBFIs
  • Government Service Insurance System

The Government Service Insurance Act of 1997
The Revised Government Service Insurance Act
of 1977
21
  • Members of the Judiciary and Constitutional
    Commissions who are covered by separated
    retirement laws
  • Contractual employees who have no
    employee-employer relationship with their
    agencies
  • Uniformed members of the AFP and PNP including
    the BJMP and BFP

22
  • Life Insurance
  • Enhanced Life Policy
  • Life Endowment Policy
  • Retirement Benefits
  • Disability Benefits
  • Survivorship Benefits
  • Funeral/Burial Benefits
  • Employees Compensation Benefits
  • Separation Benefit
  • Unemployment Benefit

Benefits
23
  • Consolidated/Salary Loan
  • Policy Loan
  • Emergency Loan

LOANS
24
  • Housing
  • Scholarship
  • G-Care
  • My Shield
  • Home Shield
  • Auto Shield

Other Services
25
Government NBFIs
  • Pag-IBIG Fund

A
B
C
D
E
F
G
26
  • A SSS GSIS to handle the Fund
  • B Fund will be administered by the National
    Home Mortgage
  • Finance Corporation
  • C the Fund became independent and became
    mandatory for
  • all SSS and GSIS member-employees
  • D Resumption of Pag-IBIG (after Pres. Aquino
    suspended operations of Pag-IBIG)
  • E Pag-IBIG Fund became a voluntary program
  • F Pag-IBIG membership reverted to mandatory
    (under Pres. Ramos)
  • G Home Development Mutual Fund Law
  • Mandatory for all SSS and GSIS-covered
    employees uniformed members of the AFP, BFP,
    BJMP, and PNP as well as Filipinos employed by
    foreign-based employers.

27
  • Provident (Savings) Benefit Claim
  • Membership Maturity
  • Retirement
  • Permanent and Total Disability or Insanity
  • Separation from the service due to health reason
  • Permanent departure from the country
  • Death
  • Housing Loan
  • Short-Term Loan
  • Calamity loan
  • Multi-purpose loan

Benefits and Programs
28
  • Pag-IBIG Overseas Program
  • Home Matching Program
  • Property Sale (Acquired Asset)
  • Rent-to-Own

Other Services
29
Pag-IBIG
  • Pagtutulungan sa Kinabukasan Ikaw, Bangko,
    Industria at Gobyerno
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