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. Government Non-Bank Financial Institutions
As the banking system was evolving there was a parallel development of the other financial institutions.
Insurance for workers under the Government Service Insurance System was in operation by 1936.
Compulsory social security insurance in the private sector was founded in 1957 with the creation of the Social Security System.

4. Government Non-Bank Financial Institutions (cont’n)
These institutions were created essentially to protect the welfare of employees. The consequence was that they set up large funds that were generated from the insurance premium of members and their counterpart institutions. A logical result was the corresponding effort to administer the welfare programs to protect the insurance funds that are generated.

5. Government Non-Bank Financial Institutions (cont’n)
With the advent of other social welfare programs, new social insurance institutions are created. The Workmen’s Compensation Programs generate and administer a trust fund to insure workers against accidents. Medicare also generates funds to pay for medical care programs of its members.

6. Government Non-Bank Financial Institutions (cont’n)
Among these are institutions like PAG-IBIG fund.
In conjunction with the promotion of housing, the government also created the National Home Mortgage Financing Corporation which is designed as a national mortgage bank that could refinance the mortgage papers of other financial institutions.

7. Non-Bank Financial Institution Sector
Component institutions are not banks, but currently are subject to regulations by the BSP.
These are sub-divided into two groups:
Those that engage in the lending of funds obtained from the public by issuance of their own debt instruments (quasi-banking)
Those that engage in the lending of funds from sources other than the public.

8. Component Institutions
Investment Houses
These are stock corporations engaged in the underwriting of securities of other corporations on a guaranteed basis. Their principal role is capital formation that can engage in portfolio management, stockbrokerage, financial consultancy and lending operations.
As it applies to the US financial system, the investment banking industry is part of the larger securities sector. It is basically made up of firms engaged in issuing, distributing and selling securities and related financial products. Investment banks, brokerages and market- making entities comprise the securities sector. Investment banks are global financial institutions which perform any or all of the service functions of origination and issue , management , underwriting and distribution. 

9. Component Institutions
Investment Houses (cont’n)
Underwriting involves the investment bank’s absorption of risk, assuming it contracts to buy the securities up-front at a fixed price without any consideration as to how the general market will receive the issue come offering period. 
If the smaller houses could not take on the magnitude of the risks and exposure involved in a regular issue management and firm underwriting endeavor, they may still opt to go for a minor role, that is, as a “participating underwriter.” 

10. Component Institutions
Investment Houses (cont’n)
Of course, the fees would be smaller and the financial advisory function would be out of reach. If the investment house still could not carry out this function, it stays clear of IPOs and similar offerings, and instead targets those involving only best-efforts underwriting. Underwriting, in this sense, is restricted to what the investment house can re-sell to its clientele. The investment house has the right to return to the issuer any portion left unsold without exposing itself to liquidity risk.

11. Component Institutions
Investment Houses (cont’n)
This kind of arrangement is prevalent in the flotation of corporate bonds, more commonly known as short- and long-term commercial papers. The distribution function is an area reserved for the local brokerage houses. Investment houses undertake the primary selling of underwritten securities. However, they rarely complement this with market-making activities. Once the securities are sold to institutional and individual clients, investment houses move on to the next origination and underwriting mandate. Brokerage houses are the market-makers and the active secondary distributors.

12. Component Institutions
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. Component Institutions
Investment Companies
 Any issuer which the Commission, upon application by such issuer, finds and by order declares to be primarily engaged in a business or businesses other than that of investing, reinvesting, or trading in securities either directly or (A) through majority-owned subsidiaries or (B) through controlled companies conducting similar types of business. 

14. Component Institutions
Investment Companies
These are issuers of securities primarily engaged in the business of investing or trading in securities. There are two types of investment companies: open-end company, also known as the mutual fund, which offers for sale or has outstanding redeemable securities of which it is the issuer and closed-end company, which is an investment company whose shares issued are not redeemable.
Open-end company according to RA #2629 is an investment company which is offering for sale or has outstanding any redeemable security of which it is the issuer

15. Component Institutions
Securities Dealers and Brokers
A securities dealer buys and sells shares of stock of another or acquires securities for profit. In contrast, a securities broker facilitates transaction between a buyer and seller of securities for a commission

16. Component Institutions
Venture Capital Corporations
These are organized jointly by private banks, the National Development Corporation and the Technology Livelihood Research Center and/or other government agencies to develop, promote, and assist small and medium scale enterprises through debt to equity financing.

17. Component Institutions
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 country’s 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.

18. Why do many go to pawnshops more than banks?
Pawnshohps(cont’n)
Why do many go to pawnshops more than banks?
Michelle Remo
Philippine Daily Inquirer
For many Filipinos, pawning jewelry at a neighborhood pawnshop has been the most common and quickest way to address an urgent need for relatively small amounts of cash.
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.

19. Component Institutions
Lending Investors
Lending investors are those who make a practice of lending money for themselves or others. They extend all types of loans, generally short term, often without collateral, using their own capital.

20. Component Institutions
Mutual Building and Loan Associations
These are corporations whose capital stock must be subscribed by the stockholders in regular equal installments with the purpose of accumulating the stockholders’ savings and repaying them with their accumulated savings and profits upon surrender of their shares in order to encourage industry, savings, and home building among its stockholders.

21. Component Institutions
Stock Savings and Loan Associations

22. Government NBFIs Social Security System Social Security Act of 1997
EO 150
RA 1161
RA 8282
Social Security Act of 1997
Social Security Act of 1954

23. 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.)
Who are covered?

24. Who are covered? Voluntary Separated Members OFWs
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.
Who are covered?

25. 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.
Who are covered?

26. 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.
Who are covered?

27. Member Loans
Housing Loans
Business Loans
LOANS

28. Benefits Sickness Benefit Retirement Benefit Disability Benefit
Maternity Benefit
Death and Burial Benefit
Benefits

29. Government NBFIs Government Service Insurance System
The Government Service
Insurance Act of 1997
CA 186
PD 1146
RA 8291
The Revised Government
Service Insurance Act of
1977

30. 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

31. Benefits Life Insurance Retirement Benefits Disability Benefits
Enhanced Life Policy
Life Endowment Policy
Retirement Benefits
Disability Benefits
Survivorship Benefits
Funeral/Burial Benefits
Employees’ Compensation Benefits
Separation Benefit
Unemployment Benefit
Benefits

32. Disability Benefits
Permanent Total Disability (PTD) – disability due to injury or disease causing complete, irreversible and permanent incapacity that will permanently disable a member to work or to engage in any gainful occupation resulting to loss of income. The following disabilities are deemed total and permanent:
complete loss of sight for both eyes;
loss of two limbs at or above the ankle or wrists;
permanent complete paralysis of two limbs;
brain injury resulting in incurable imbecility or insanity; and
such other cases as may be determined and approved by GSIS

33. Disability Benefits
Permanent Partial Disability (PPD) – arises due to the complete and permanent loss of the use of any of the following resulting to the disability to work for a limited period of time:
any finger
one arm
one foot
any toe
one hand
one leg
one or both ears
hearing of one or both ears
sight of one eye
such other cases as may be determined and approved by the GSIS

34. Disability Benefits
Temporary Total Disability (TTD) – accrues or arises when the impaired physical and/or mental faculties can be rehabilitated and/or restored to their normal functions, but such disability will result in temporary incapacity to work or to engage in any gainful occupation.

35. LOANS

36. Other Services Housing Scholarship G-Care My Shield Home Shield
Auto Shield
Other Services

37. Government NBFIs Pag-IBIG Fund A B C D E F G PD 1530 EO 527 PD 1752
RA 7742
RA 9679 A B C D E F G

38. 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.

39. Benefits and Programs Provident (Savings) Benefit Claim Housing Loan
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

40. Other Services Pag-IBIG Overseas Program Home Matching Program
Property Sale (Acquired Asset)
Rent-to-Own
Other Services

41. Pag-IBIG
Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria at Gobyerno