Characteristics of Indigenous Bankers

Una ay ang “Bangko ng Pagtitipid” Binubuo ito ng mga di kilalang bangko na ang pangunahing layunin ay
ang humikayat sa pag iimpok at pagtitipid. Ang mga bangkong ito ay tumatanggap ng deposito mula sa
publiko. “Halimbawa, Stock savings and Loan Association, Savings and Mortgage Bank, at Private
Development Bank.”
“Bangkong Komersyal” Ito ang bangkong nakikipag ugnay sa mga nag iimpok at mga negosyante at
Kapitalista. May dalawang uri ng bangkong komersyal. Una ang “Ordinary Commercial Bank”
Nagkakaloob lamang ng pautang sa loob lamang ng maikling panahon. Ikalawa ang “Expand Commercial
Banking” Ito ay malawak na gawain tulad na lamang ng credit card at pagpapautang sa mahabang
panahon.
Land Development Banks - Itinataguyod ng mga bangko na ito ang paglaki sa sektor ng pagkain sa
pamamagitan ng pagbibigay ng pautang sa mga magsasaka sa medyo mas mababang rate ng interes.
Ang pautang ay karaniwang ibinibigay batay sa lupa. Kung ang magsasaka ay maraming mga patlang ng
agrikultura, kung gayon ang mas maraming utang na natanggap niya.
Characteristics of Indigenous Bankers:
1. Indigenous bankers accept deposits and deal in hundis. Modern bankers do not deal in hundis, but in
bills of exchange.
2. Indigenous bankers use their own capital for conducting their lending activities. Deposits form only a
small part of their working capital while a modern banker relies largely on deposits for his business.
3. Operations of indigenous bankers are free from formalities and delays. Their business hours are
flexible. A modern banker deals in a formal way only.
4. In comparison with a modern banker, indigenous banking establishments are small and economical.
As against modern joint-stock commercial banks, the business of indigenous bankers is carried on as a
family concern with their own working capital.
5. Indigenous bankers provide finance to the traders, artisans, as well as the small industrialists, but give
no direct loans to the agriculturists.
6. Indigenous bankers do not have any formal banking education. They conduct business on the basis of
their experience.
7. Indigenous bankers maintain simple accounts in the vernacular.
8. Indigenous bankers have a thorough knowledge about the family history of their customers and all
details regarding their business and financial standing.
9. Indigenous bankers keep a close watch over the activities of the borrowers.
10. Indigenous bankers are keen on maintaining their business reputation unlike non-professional
money-lenders. They have a high sense of responsibility and profit motive. As such they command
prestige and great confidence among the trade circles and the borrowers.
11. Unlike a modern banker, indigenous bankers lend on the mortgage of land, houses etc. They also
draw and discounts hundis – darshini or muddati (i.e., demand or usuance bill). The discounting rate
charged by them is called the bazar rate.
12. A majority of indigenous bankers combine banking business with trading and speculative activity
based on a common capital fund employed by them. However, Multanis of Bombay and Chettiars of
Madras stick to banking business only.
A mortgage is a loan in which property or real estate is used as collateral. The borrower enters into
an agreement with the lender (usually a bank) wherein the borrower receives cash upfront then makes
payments over a set time span until he pays back the lender in full. A mortgage is often referred to
as home loan when its used for the purchase of a home.
Mortgage loans are usually entered into by home buyers without enough cash on hand to purchase
the home. They are also used to borrow cash from a bank for other projects using their house
as collateral.
Mortgages make larger purchases possible for individuals lacking enough cash to purchase an asset,
like a house, up front. Lenders take a risk making these loans as there is no guarantee the borrower
will be able to pay in the future. Borrowers take risk in accepting these loans, as a failure to pay will
result in a total loss of the asset.
Spare banks- ex. Commercial facilities- Commercial Facilities Sector

 Entertainment and Media (e.g., motion picture studios, broadcast media).
 Gaming (e.g., casinos).
 Lodging (e.g., hotels, motels, conference centers).
 Outdoor Events (e.g., theme and amusement parks, fairs, campgrounds, parades).
 Public Assembly (e.g., arenas, stadiums, aquariums, zoos, museums, convention
centers).
Federal or national bank Ex. Philippine national bank
Cooperative Bank- Metro South Cooperative Bnak,
Exchange bank- Western Union, Philippine Business Bank
Consumers bank- Fernando Air Base Consumers Cooperative(lipa)

cOmmunity Development bak- wewsyern union , Luzon Development bank ATM. A community
development bank is a financial institution created for the purpose of promoting economic
development in regions that generally have low to moderate incomes. These banks offer checking and
savings accounts as well as loans, mortgages, credit cards and other retail banking services to those
who fall within lower income brackets.
A credit union is a financial institution

Credit unions- BPI, PNB, Metrocard bill payments---
that is owned and controlled by its members rather than shareholders. The members of
the credit union pool their deposits and provide loans and other financial services to
each other.---- Credit unions offer most of the same services as banks, but differ in that
individual members are owners and there are generally less assets under management.
Because credit unions are usually considerably smaller than banks, they are able to
offer more personalized advisory services to their members, and they may offer
banking services at a lower cost.
Postal savings bank- Citystate Savings Bank ATM

Private banks-
Offshore banks-Despite what you may hear, offshore banking is completely legal. It's not about
tax evasion or other illegal activities. It's simply about legally diversifying your political risk by
putting your liquid savings in sound, well-capitalized institutions where they are treated best.
Ethical Banks- The specific ethical issues that characterised the financial crisis included
manipulating credit ratings, the mis-selling of securities, unauthorised trading and the short-
selling of bank shares. In addition, there are long-standing ethical concerns regarding
practices such as market manipulation and insider dealing.
Internet Banks- lower fees and better interest rates
Because online banks don't have to spend money on branch maintenance, they tend
to have lower or no fees, and higher interest rates on deposit accounts. The
best online savings accounts have APYs upward of 2%.... Are Internet banks safe?
Short answer: Yes, online-only banks are safe, providing they have FDIC insurance.
The Federal Deposit Insurance Corp. is what insures bank accounts. Banking fees
support the FDIC
Investment Banks- Investment banking is a specific division of banking related to the

creation of capital for other companies, governments and other
entities. Investment banks underwrite new debt and equity securities for all types
of corporations, aid in the sale of securities, and help to facilitate mergers and
acquisitions, reorganizations and broker trades for both institutions and private
investors. Investment banks also provide guidance to issuers regarding the issue
and placement of stock.
Merchant Banks- A merchant bank is a financial institution that engages in underwriting and
business loans, catering primarily to the needs of large enterprises and high net worth
individuals. In the British market, the term merchant bank refers to an investment bank……….
Banks are termed as the financial institutions, which act as intermediaries between depositors
and borrowers. ... On the other hand, merchant banks are similar to investment banks as they
do not provide regular banking services, rather deals with commercial loans and investment
avenues
Universal Banks- Universal Banking - Meaning. Universal banking is a combination of

Commercial banking, Investment banking, Development banking, Insurance and many other
financial activities. It is a place where all financial products are available under one roof. ... They
provide many different financial services to their clients.
Islamic Banks= also known as non-interest banking, is a system based on the principles
of Islamic or Sharia law and guided by Islamic economics. Islamic banks make a profit
through equity participation which requires a borrower to give the bank a share in their profits
rather than paying interest.

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Characteristics of Indigenous Bankers

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Una ay ang “Bangko ng Pagtitipid” Binubuo ito ng mga di kilalang bangko na ang pangunahing layunin ay

Characteristics of Indigenous Bankers:

7. Indigenous bankers maintain simple accounts in the vernacular.

Spare banks- ex. Commercial facilities- Commercial Facilities Sector

Federal or national bank Ex. Philippine national bank

Cooperative Bank- Metro South Cooperative Bnak,

Exchange bank- Western Union, Philippine Business Bank

Consumers bank- Fernando Air Base Consumers Cooperative(lipa)

A credit union is a financial institution

Postal savings bank- Citystate Savings Bank ATM

Internet Banks- lower fees and better interest rates

Investment Banks- Investment banking is a specific division of banking related to the

Universal Banks- Universal Banking - Meaning. Universal banking is a combination of

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