Non-Bank Financial Institutions

1. Investment Houses are entities that engage in underwriting

and selling new securities to the public. They specialize in
capital market activities, facilitating corporate finance,
and mergers and acquisitions (M&A). Their primary functions
include underwriting, selling securities, advising
companies, and structuring complex financial transactions.
They offer products and services such as initial public
offerings (IPOs), corporate finance advisory, M&A advisory,
and private placements. Investment houses earn profits
primarily through fees and commissions from underwriting and
advisory services, as well as profits from trading
securities. They are regulated by the Securities and
Exchange Commission (SEC) under the Securities Regulation
Code (Cabrera, 2020).

2. Investment Banks are financial intermediaries providing

various services like underwriting, mergers and
acquisitions, trading securities, financial restructuring,
and raising capital. They focus on corporate clients and
handle large financial transactions, often involving
international finance. Their products and services include
IPOs, advisory services, structured finance, and syndicated
loans. Investment banks earn profits from underwriting fees,
advisory fees, trading profits, and interest income from
financing deals. They are regulated by the SEC and the
Bangko Sentral ng Pilipinas (BSP) under banking and
securities laws (Mariano, 2018).

3. Financing Companies provide loans and credit facilities for

consumer and commercial purposes. They focus on consumer
financing, often for specific needs like vehicle loans, and
may specialize in certain sectors. Their functions include
providing credit to consumers and businesses, asset-based
financing, leasing, and factoring. Common products include
auto loans, equipment leasing, personal loans, and factoring
services. Financing companies earn profits from interest on
loans, lease payments, and service fees. They are regulated
by the SEC and BSP under the Financing Company Act (Timbang,
2020).

4. Securities Dealers and Brokers These entities buy and sell

securities on behalf of clients or for their own accounts.
They act as intermediaries in securities markets,
facilitating trading for clients and offering advisory
services. Their functions include trading and dealing in
securities, market making, providing liquidity, and
 executing trades. Products and services include brokerage
services, investment advice, market making, and research
reports. Securities dealers and brokers earn profits from
commissions on trades, spreads on market making, and fees
for advisory services. They are regulated by the SEC and the
Philippine Stock Exchange (PSE) under the Securities
Regulation Code (Cabrera, 2020).
Security Dealers are individuals or firms that buy and sell
securities for their own accounts. They act as principals in the
transactions, meaning they use their own capital to trade and
make profits or losses based on the price differences.
Functions:
1. Market Making: Dealers often provide liquidity to the market
by being ready to buy and sell securities at all times.
2. Risk Bearing: Since they trade on their own account, dealers
bear the risk of holding securities.
3. Profit from Spread: Dealers profit from the difference
between the buying (bid) and selling (ask) prices.
Regulation:
In the Philippines, security dealers are regulated by the
Securities and Exchange Commission (SEC) and must comply with the
Securities Regulation Code (SRC), which governs their operations,
ensuring transparency and protecting investors.

Brokers are intermediaries who buy and sell securities on behalf

of their clients. They do not trade with their own capital but
act as agents for their clients, facilitating transactions in
exchange for a commission or fee.
Functions:
1. Client Representation: Brokers execute buy or sell orders as
per the instructions of their clients.
2. Advisory Services: Many brokers also provide investment
advice and research services to their clients.
3. Earn Commission: Brokers earn a commission for every
transaction they facilitate.
Regulation:
Brokers are also regulated by the SEC and must be members of the
Philippine Stock Exchange (PSE). They are required to adhere to
rules set by the PSE and SEC to ensure fair trading practices and
safeguard client interests.

5. Savings and Loan Associations accept savings deposits and

provide loans to members. They primarily operate for their
members, often community-based, promoting savings and
homeownership. Their functions include accepting deposits,
providing housing and personal loans, and promoting
community development. Products and services include savings
accounts, personal loans, mortgage loans, and member
 dividends. They earn profits from the interest rate spread
between loans provided and deposits accepted. They are
regulated by the BSP and the Cooperative Development
Authority (CDA) under the Cooperative Code and BSP Circulars
(Mariano, 2018).

6. Mutual Funds are investment vehicles that pool funds from

investors to purchase a diversified portfolio of assets.
They offer diversification and professional management, open
to both retail and institutional investors. Their functions
include pooling investor funds, investing in securities,
managing investment risk, and providing liquidity and
diversification. Products include equity funds, bond funds,
balanced funds, and money market funds. Mutual funds earn
profits through management fees based on the assets under
management (AUM) and, in some cases, performance fees. They
are regulated by the SEC under the Investment Company Act
(Timbang, 2020).

TYPES OF MUTUAL FUNDS

a. Equity Funds primarily invest in stocks listed on the
Philippine Stock Exchange (ISE). They aim to provide capital
appreciation over the long term but also carry higher risks
due to stock market fluctuations. Investors can leverage the
expertise of fund managers to navigate market volatility and
optimize investment returns in line with their risk
tolerance and financial objectives.

b. Bond Funds invest in fixed-income securities such as

government and corporate bonds. They aim to generate income
through regular interest payments and provide relatively
lower risk compared to equity funds.

c. Money Market Funds invest in short-term fixed-income

securities with high liquidity, such as treasury bills and
commercial papers. They are suitable for investors seeking
capital preservation and stable returns. The low risk nature
and easy accessibility of money market funds make them a
favorable choice for investors looking to park their funds
temporarily while maintaining a balance between liquidity
and modest returns.

d.Balanced Funds allocate investments across both stocks and

bonds to achieve a balance between capital appreciation and
income generation. They are suitable for moderate risk-
tolerant investors.

e.Index Funds aim to replicate the performance of a specific

market index, such as the PSE Index. They offer
diversification and relatively lower management fees
compared to actively managed funds.
7. Pawnshops offer secured loans to individuals, using personal
property as collateral. They provide immediate cash loans,
with collateral typically being personal valuables like
jewelry and electronics. Their functions include providing
short-term loans, securing loans with collateral, and
offering appraisal services. Products and services include
pawn loans, remittance services, jewelry sales, and money
transfers. Pawnshops earn profits from interest on pawn
loans, service fees, and the sale of unredeemed items. They
are regulated by the BSP under the Pawnshop Regulation Act
(Cabrera, 2020).

PD114 Section 3. Definitions. As used in this Decree, unless

the context otherwise requires, the following terms shall have
the following meanings:
"Pawnshop" shall refer to a person or entity engaged in the
business of lending money on personal property delivered as
security for loans and shall be synonymous, and may be used
interchangeably, with pawnbroker or pawnbrokerage.

"Pawner" shall refer to the borrower from a pawnshop.

"Pawnee" shall refer to the pawnshop or pawnbroker.

"Pawn" is the personal property delivered by the pawner to

the pawnee as security for a loan.

"Pawn ticket" is the pawnbrokers' receipt for a pawn. It is

neither a security nor a printed evidence of indebtedness.

"Property" shall include only such personal property as may

actually be delivered to the control and possession of the
pawnshop: Provided, however, That certain specified chattels
such as guns, knives and similar weapons whose reception in
pawn is expressly prohibited by other laws or regulations
shall not be included.

8. Lending Investors are individuals or entities providing

loans without deposit-taking. They operate on a smaller
scale, catering to personal and small business loans, often
with less stringent requirements. Their functions include
providing loans, often at higher interest rates than banks,
with flexible terms. Products and services include personal
loans, business loans, short-term credit, and payday loans.
Lending investors earn profits from interest income and
service fees. They are regulated by the SEC under the
Lending Company Regulation Act (Mariano, 2018).
 9. Pension Funds Pension funds are established to provide
retirement income to members. They are managed for long-term
growth, often investing in a diversified portfolio, offering
tax advantages. Their functions include managing retirement
savings, providing retirement income, and ensuring financial
security in retirement. Products include retirement plans,
annuities, and pension benefits. Pension funds earn profits
through investment returns on their asset portfolios and
administrative fees. They are regulated by the BSP, SEC, and
Insurance Commission (IC) under the Retirement Pay Law and
related regulations (Timbang, 2020).

10. Insurance Companies Insurance companies provide risk

management by offering insurance products. They underwrite
risks, collect premiums, and manage risk pools, offering
various insurance products. Their functions include
providing financial protection against risks, managing
investment portfolios, and offering different insurance
products. Products and services include life insurance,
health insurance, property insurance, annuities, and pension
plans. Insurance companies earn profits from premiums,
investment income on reserves, and underwriting profits.
They are regulated by the IC under the Insurance Code
(Cabrera, 2020).

TYPES OF INSURANCE COMPANIES

1. Life Insurance - provides financial protection to the

beneficiaries upon the death of the insured.

Subtypes:

 Term Life Insurance: Covers a specific period (e.g., 10, 20

years). No cash value; benefits are paid only upon death
during the term.
 Whole Life Insurance: Covers the insured for their entire
life. It includes a cash value component that grows over
time.
 Endowment Insurance: Provides a lump sum either upon death
or after a set period.
 Variable Life Insurance (VUL): Combines life insurance with
investment options. The cash value depends on the
performance of the investment funds.

Purpose:

 Financial support for dependents

 Estate planning

2. Health Insurance it covers medical expenses, including

hospitalization, surgeries, and sometimes outpatient care.

Subtypes:
  HMO (Health Maintenance Organization): Provides
comprehensive health services through a network of
healthcare providers.
 Medical Insurance: Reimburses or pays for hospitalization
and medical expenses.
 Critical Illness Insurance: Provides a lump sum upon
diagnosis of specific critical illnesses (e.g., cancer,
heart attack).

Purpose:

 Reduces financial burden from medical expenses

 Ensures access to quality healthcare

3. Property Insurance it protects against risks to property, such

as damage or loss due to fire, theft, or natural disasters.

Subtypes:

 Fire Insurance: Covers damages caused by fire.

 Homeowners Insurance: Covers damage or loss to a home and
its contents.
 Earthquake Insurance: Specifically covers damage caused by
earthquakes.
 Flood Insurance: Covers damages due to flooding.

Purpose:

 Protects personal or commercial property from unforeseen

damages

4. Auto Insurance – it provides financial protection against

losses or damages related to vehicles.

Subtypes:

 Comprehensive Coverage: Covers damages to the vehicle from

various risks (e.g., theft, accidents, natural calamities).
 Third-Party Liability (TPL): Covers legal liability for
damages or injuries caused to a third party.
 Personal Injury Protection (PIP): Covers medical expenses
and sometimes lost wages for the insured.

Purpose:

 Protects against financial losses from vehicular accidents

or theft

5. Travel Insurance it covers risks associated with traveling,

such as trip cancellations, medical emergencies, or lost luggage.

Subtypes:

 Trip Cancellation Insurance: Reimburses for prepaid travel

expenses if the trip is canceled for covered reasons.
 Medical Coverage: Covers medical emergencies and evacuation
during travel.
  Baggage Insurance: Covers lost, stolen, or damaged luggage.

Purpose:

 Provides peace of mind and financial protection while

traveling

6. Liability Insurance – it protects against legal liabilities

for damages or injuries to third parties.

Subtypes:

 General Liability Insurance: Covers legal liability for

bodily injuries or property damage caused to others.
 Professional Liability Insurance: Also known as Errors &
Omissions (E&O), it covers professionals against claims of
negligence or inadequate work.
 Product Liability Insurance: Protects businesses from claims
related to defects in their products.

Purpose:

 Shields individuals and businesses from legal financial

risks

7. Business Insurance – it offers protection against various

risks faced by businesses.

Subtypes:

 Property Insurance: Covers physical assets of the business.

 Business Interruption Insurance: Covers loss of income due
to disruptions (e.g., natural disasters).
 Workers' Compensation Insurance: Covers medical expenses and
lost wages for employees injured at work.

Purpose:

 Ensures business continuity and protection against

operational risks

8. Marine Insurance

Description:
Marine insurance covers loss or damage of ships, cargo, and other
marine assets during transport.

Subtypes:

 Hull Insurance: Covers the ship's structure.

 Cargo Insurance: Covers the goods being transported.
 Freight Insurance: Covers the loss of freight due to cargo
damage or loss.

Purpose:
  Protects maritime assets from losses or damages during
transport

11. Credit Unions Credit unions are member-owned financial

cooperatives providing credit at competitive rates. They
focus on member interests, distributing profits among
members as dividends, promoting thrift and credit use. Their
functions include accepting deposits, providing loans,
promoting thrift among members, and supporting community
development. Products and services include savings accounts,
personal loans, credit facilities, and member education.
Credit unions earn profits from the interest rate spread and
service fees, distributing excess earnings as dividends to
members. They are regulated by the CDA under the Cooperative
Code (Mariano, 2018).

GOVERNMENT NON-FINANCIAL
INSTITUTIONS

Government Service Insurance System

VISION

By 2028, GSIS will be a world-class pension and insurance

institution run by esteemed professionals, using digital
platforms to provide excellent customer experience while
contributing to nation-building.

MISSION

GSIS commits to –
Provide social security and insurance to members and pensioners;
Maximize the non-life insurance coverage of the government;
Strengthen the fund through sound fund management;
Form and sustain enduring partnerships; and
Uphold the highest standards of corporate governance.

CORE VALUES

As we create value for our stakeholders, we uphold:

Professionalism
Integrity
Dedicated and Excellent Service

QUALITY POLICY
English:
In the Government Service Insurance System, we are committed to
provide quality service to our stakeholders for all their social
security benefits and non-life insurance needs.
The design of our QMS shall consider the context and strategic
direction of our organization. Our systems and processes shall be
continually evaluated and improved for effectiveness, efficiency,
and compliance with legal and other regulatory requirements.
We will invest in the competence of our people through continued
professional development.

Filipino:
Sa Paseguruhan ng mga Naglilingkod sa Pamahalaan, dedikado kami
na magkaloob ng de-kalidad na serbisyo sa aming mga
pinaglilingkuran para sa lahat ng kanilang benepisyong
panseguridad panlipunan at pangangailangang proteksiyon ng
kanilang mga ari-arian.
Isasaalang-alang ng disenyo ng aming Sistema ng Pamamahala sa
Kalidad ang konteksto at estratehikong direksiyon ng aming
organisasyon. Patuloy naming susuriin at pagbubutihin ang aming
mga sistema at proseso upang higit itong maging mabisa, mahusay,
at umaayon sa mga legal at iba pang panregulasyong kahingian.
Mamumuhunan kami sa kakayahan ng aming mga tauhan sa pamamagitan
ng patuloy na propesyonal na pag-unlad.

MANDATE

Created by Commonwealth Act No. 186 and Republic Act No.

8291 (GSIS Act of 1997), GSIS is a social insurance institution
that provides a defined benefit scheme under the law. It insures
its members against the occurrence of certain contingencies in
exchange for their monthly premium contributions.
GSIS members are entitled to an array of social security
benefits, such as life insurance benefits, separation or
retirement benefits, and disability benefits.
GSIS is also the administrator of the General Insurance Fund by
virtue of RA 656 (Property Insurance Law). It provides insurance
coverage to government assets and properties that have government
insurable interests.

COVERAGE

The GSIS covers all government workers except:

– Members of the Judiciary and Constitutional Commissions who are

covered by separate retirement laws;
– Contractual employees who have no employee-employer
relationship with their agencies;
– Uniformed members of the Armed Forces of the Philippines and
the Philippine National Police, including the Bureau of Jail
Management and Penology and the Bureau of Fire Protection.
Does not include: Barangay and Sanggunian officials who are not
receiving fixed monthly compensation (Source RIRR)
Does not include: Employees who do not have monthly regular hours
of work and are not receiving fixed monthly compensation (RIRR)

BENEFITS AND SERVICES

The principal benefit package of the GSIS consists of
compulsory and optional life insurance, retirement, separation,
and Employee’s Compensation (EC) benefits.

SERVICE PRIVILEGES
GSIS offers the following loan products to assist you with
your financial needs: Multi-purpose Loan, Policy Loan, Enhanced
Emergency Loan, Enhanced Pension Loan, and Pensioners Emergency
Loan.

ORGANIZATION
As of December 31, 2020
Total work force (warm bodies): 2,780
Head Office: 1,546 (55.61%)
Branch Offices (including QC): 1,234 (44.29%)
42 Branch Offices
13 Extension Offices (Iba, Calapan, Mamburao, Virac, Boac,
Masbate, Borongan, Catarman, Aklan, Antique, Ormoc, Tandag
and Basilan)

OVERVIEW OF GENERAL INSURANCE

The Government Service Insurance System, by virtue of
Republic Act 656 and as amended by Presidential Decree 245, is
mandated to insure all properties, assets, and interests of the
government against any insurable risk. Thus, GSIS offers various
non-life insurance products that provide protection to both
institutional and individual clients.
For institutional clients, GSIS offers non-life insurance
coverage such as fire, engineering, marine hull and cargo,
aviation, contractor’s all risk, bonds, motor car, and personal
accident. For individual clients, including GSIS members,
pensioners and their dependents, the pension fund offers GCare
Plans, an umbrella of products that include Home Shield, Auto
Shield and MyShield.

GSIS also offers compulsory third party liability (CTPL)

insurance as part of its mandate to issue all forms of non-life
insurance.
 All government involvement or exposure in corporations,
partnerships, joint ventures, associations, and the like in
whatever form like loans, credit guarantee, tax incentives, or
discounts, donations, investments, financing, and franchising,
shall be construed as government interest and it shall be
mandatory for these operations, partnerships, joint ventures, and
associations to obtain their insurances and bonds from GSIS.

SOCIAL SECURITY SYSTEM

Statement of Mission
To manage a sound and viable social security system which
shall promote social justice and provide meaningful protection to
members and their families against the hazards of disability,
sickness, maternity, old age, death and other contingencies
resulting in loss of income or financial burden.

Statement of Vision

A viable social security institution providing universal and

equitable social protection through world-class service.

Statement of Corporate Values

The SSS aims to institutionalize a corporate culture that

instills the core values of Trust, Empowerment and Teamwork.

DECLARATION OF POLICY
"It is the policy of the State to establish, develop,
promote and perfect a sound and viable tax-exempt social security
system suitable to the needs of the people throughout the
Philippines which shall promote social justice through savings,
and ensure meaningful social security protection to members and
their beneficiaries against the hazards of disability, sickness,
maternity, old age, death, and other contingencies resulting in
loss of income or financial burden. Towards this end, the State
shall endeavor to extend social security protection to Filipino
workers, local or overseas, and their beneficiaries. In the
pursuit of this policy, a social security program shall be
developed emphasizing the value of 'work, save, invest and
prosper'. The maximum profitability of investible funds and
resources of the program shall be ensured through a culture of
excellence in management grounded upon sound and efficient
policies employing internationally recognized best practices."
(Section 2, RA 11199)
QUALITY POLICY

SSS is committed to provide prompt, convenient, reliable,

and meaningful social security protection services to its current
and future members and their beneficiaries.

As such, the SSS shall continually improve its systems and

processes to enhance its performance and ensure customer
satisfaction in conformity with customer, internal and applicable
statutory and regulatory requirements in relation to the context
of the organization.

COVERAGE

As an actively paying member of the SSS, either as a

worker in the private sector or as an individual
member (self-employed, voluntary, OFW, non-working
spouse), you and your beneficiaries are assured of
prompt, convenient, reliable, and meaningful social
protection today and in the future. The SSS commits to
provide all members with adequate social security
benefits on time, especially in times of contingencies
such as sickness, maternity, disability, old age,
death, and even unemployment.
There are two (2) types of coverage under the regular
SSS Program: Compulsory and Voluntary.

Compulsory Coverage:

Employer (Business or Household Employer)

Employee
Self-Employed
Househelper or Kasambahay
Overseas Filipino Workers (OFW) (land-based and sea-
based, except for Filipino permanent migrants,
including Filipino immigrants, permanent residents,
and naturalized citizens of their host countries, who
may be covered on a voluntary basis)

Voluntary Coverage:

Non-Working Spouse (NWS)

Separated Members

SSS BENEFITS OVERVIEW

Sickness Benefit
Maternity Benefit
Retirement Benefit
Disability Benefit
Death Benefit
Funeral Benefit
Unemployment Benefit

OVERVIEW OF SALARY LOAN

A cash loan granted to an employed member or a currently-paying
self-employed or voluntary member. It is intended to meet the
member's short-term credit needs.

QUALIFYING CONDITIONS

An employed member or a currently-paying self-employed or

voluntary member
For one-month loan: 36 monthly contributions, six (6) of which
should have been posted in the last twelve (12) months prior to
the month of application.
For two-month loan: 72 monthly contributions, six (6) of which
should have been posted in the last twelve (12) months prior to
the month of application.
If employed, the member’s employer must be updated in the payment
of contributions and loans. The member must also be updated in
the payment of other loans with SSS.

AMOUNT AND TERMS OF LOAN

A one-month loan is equivalent to the average of member’s last

twelve (12) Monthly Salary Credits (MSC), or the amount applied
for, whichever is lower.

A two-month loan is equivalent to twice the average of the

member’s last twelve (12) MSCs posted, rounded to the next higher
MSC, or the amount applied for, whichever is lower.

The loan shall be charged an interest rate of ten percent (10%)

per annum until fully paid, based on diminishing principal
balance, and shall be amortized over a period of 24 months.

PAG - IBIG

VISION
For every Filipino worker to save with Pag-ibig Fund, to
achieve their dream of home ownership, and to improve their
quality of life.
MISSION
To generate more savings from more Filipino workers, to
administer a sustainable Fund with integrity, sound financial
principles, and with social responsibility, and to improve
accessible funds for housing of every member.
CORE VALUES
PROFESSIONALISM
Competent, objective, prompt, efficient, accurate,
respectful
INTEGRITY
 Honest, trustworthy, accountable, leads by good example
EXCELLENCE
Exceeds performance expectations, exemplar, resilient,
consistent, result-driven, innovative
SERVICE
Consistently meets or exceeds customer expectations,
provides positive experience, member-centric, patient,
reliable
PROGRAMS AND BENEFITS
ELIGIBILITY
Active member with least 24 monthly savings
Not more than 65 years old at the date of loan application
and is not more than 70years old at the date of loan
maturity
Legal capacity to acquire and encumber real property
No Pag-ibig housing loan foreclosed, cancelled, bought back,
or voluntary surrendered
If with existing Pag-ibig Housing account or Short term loan
payments must be updated.
LOAN PURPOSE
Purchase of residential lot or adjoining residential lots
(max of 100 sq. m.)
Purchase of residential house and lot, townhouse or
condominium unit
Construction of house
Improvement of house
Refinancing of an existing housing loan
Combined loan purposes
REQUIREMENTS
From Borrower
Housing Loan Application with recent ID photo of
borrower/co-borrower
Proof of Income
Valid ID of Principal borrower and Spouse, Co-borrower and
Spouse, Seller and Spouse and Developer`s Authorized
Representative and Attorney-in-fact
From Seller (and/or Borrower)
Transfer Certificate of Title (TCT)
Updated Tax Declaration
 Vicinity Map

MODES OF PAYMENT
Salary deduction through Employer Collection Servicing
Agreement
Post dated checks
Auto debit arrangement with banks
Accredited collection partners (local and Overseas
Remittance)
2. PAg-ibig Home Equity Appreciation Loan (HEAL)
Allows qualified Pag-ibig Housing Loan borrowers to loan an
amount based on the net value of their home at very low interest
rates.
To help them improve their homes, buy a car, purchase
furniture and appliances, or finance other life goals.
3. Pag-ibig Multi-Purpose Loan or MPL is a cash loan designated
to help our members with any immediate financial need. A member
can borrow up to 80% of their Pag-ibig Regular Savings, and can
be processed in as fast as 2 days.
4. Calamity Loan -is a cash loan facility to assist Pag-IBIG Fund
members who reside in areas declared under a state of calamity
and are affected by such disasters. The loan seeks to provide
immediate financial assistance to help members recover from the
effects of such calamity. It comes at a low interest rate of
5.95% per annum. The Calamity loan is payable within 36 or 24
months, and has a deferred first payment.