Non-Bank Financial Institutions(NBFI)

• 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.

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)

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.

• 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 union’s 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– Besides the fixed deposit which can only be withdrawn upon separation from the union and which earns dividends, there is also the savings deposit which a member must put in regularly.

• Private Insurance Companies– Contribute to the country’s socio-economic development as

well as to the insured.

• 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.

• 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.

• 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)

• 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.

Government NBFIs• Social Security System

Social Security Act of 1954

Social Security Act of 1997

Wh

o a

re c

overe

d?

• 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.)

Wh

o a

re c

overe

d?

• 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.

Wh

o a

re c

overe

d?

• 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.

Wh

o a

re c

overe

d?

• 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.

• Member Loans• Housing Loans• Business Loans

LO

AN

S

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

Ben

efi

ts

Government NBFIs• Government Service Insurance System

The Revised Government Service Insurance Act of

1977

The Government ServiceInsurance Act of 1997

• 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

• Life Insurance– Enhanced Life Policy– Life Endowment Policy

• Retirement Benefits• Disability Benefits• Survivorship Benefits• Funeral/Burial Benefits• Employees’ Compensation Benefits• Separation Benefit• Unemployment BenefitB

en

efi

ts

• Consolidated/Salary Loan• Policy Loan• Emergency Loan

LO

AN

S

• Housing• Scholarship• G-Care

– My Shield– Home Shield– Auto Shield

Oth

er

Serv

ices

Government NBFIs• Pag-IBIG Fund

A B C D E F G

A – SSS & GSIS to handle the FundB – Fund will be administered by the National Home Mortgage Finance CorporationC – the Fund became independent and became mandatory for all SSS and GSIS member-employeesD – Resumption of Pag-IBIG (after Pres. Aquino suspended operations of Pag-IBIG)E – Pag-IBIG Fund became a voluntary programF – 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.

• 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

Ben

efi

ts a

nd

Pro

gra

ms

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

Oth

er

Serv

ices

Pag-IBIG

Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria at Gobyerno