Non-Bank Financial Institutions (NBFI)

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Non-Bank Financial Institutions(NBFI)
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• 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.

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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)

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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  withdrawn upon separation from the union and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.

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

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• 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.

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• 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.

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• 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)

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• 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.

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Government NBFIs

• Social Security System

Social Security Act of 1997
Social Security Act of 1954
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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.)

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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.

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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.

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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.

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• Member Loans
• Housing Loans
• Business Loans

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

Benefits
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Government NBFIs

• Government Service Insurance System

The Government Service Insurance Act of 1997
The Revised Government Service Insurance Act
of 1977
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• 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

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• 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
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• Consolidated/Salary Loan
• Policy Loan
• Emergency Loan

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

Other Services
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Government NBFIs

• Pag-IBIG Fund

A
B
C
D
E
F
G
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• 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.

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

Other Services
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Pag-IBIG

• Pagtutulungan sa Kinabukasan Ikaw, Bangko,
  Industria at Gobyerno