Académique Documents
Professionnel Documents
Culture Documents
A CASE STUDY
March 1, 2011
Though S&Ls are very rampant in the United States, there are only few banks or
institutions which are focused in this purpose in the Philippines. There not many
notable institutions engaging in this activity, including the Bataan Savings and Loan
Bank, Cordillera Savings and Loan, Farmers Savings and Loan Bank and such,
mostly of which can be found in rural areas. But there are also prominent firms
which engage in this kind of activity such as the Bank of the Philippine Islands (BPI).
BPI is the oldest bank in the Philippines still in operation and is the country’s third
largest bank in terms of assets. Also, it is the country’s largest bank in terms of
market capitalization, and is considered as the Philippine’s most profitable bank. It
concentrates its savings and loans operation in two subsidiary banks: the BPI Direct
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Savings Bank and BPI Family Savings Bank. The former is oriented in the Overseas
Filipino Community, while the latter is more concerned with local clients.
Since BPI Direct Savings Banks has a larger customer base, the group decided to
look into its operations.
BPI Direct Savings Bank or BPI Direct is a wholly-owned subsidiary bank of the Bank
of the Philippine Islands (BPI). It is the first bank to be operating in “paperless
envionment” for it is the only bank in the Philippines to be “highly dependent on
telephone and online banking”, making it “one of the largest banks in the
Philippines in those field”. This served as an expression of BPI’s commitment to high
standard banking by the use of technology and creative management to provide
excellent convenience to its customers.
The use of technology brought significant success for the bank because it is
considered as a step forward by innovating banking experience as we know it. The
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F IGURE 3 BPI D IRECT S LOGAN
BRIEF HISTORY
BPI Direct is registered with the Securities and Exchange Commision to be on
operation on September 26, 1986 primarily to engage in the “general business of
savings and mortgage banking”. In 2000, it changed its image by engaging in
telephone and online banking, changing banking experience as we know it, in orer
to withsatand the hastle of traditional banking. It provided 24/7 banking experience,
as well as traditional banking practices such as opening a savings account.
As time passed by, they started to use their advantage: online banking. Two years
later, they concentrated their customer base on the Overseas Filipino Community,
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“without alienating its existing clientele”. Through the use of the World Wide Web
(WWW) connection, their customer base expanded. Filipinos around the globe can
now access their accounts and manage their finances, 24/7. Surpassing the
traditional banking conventions. And because of this, BPI Direct decided to name
itself “you bank away from home”, which ultimately became its slogan.
The application form first lets you choose which deposit account you want to apply,
as enumerated below under “Procts and Services”, and then lets you choose you
accoun ownership, whether it is single, or a joint account. After that, you should
indicate where you are currently located, whether within or outside the Philippines.
For joint accounts, the current location should be the same for both persons. You
should also indicate you membership status with the BPI Express Online community.
You should confirm that by opening an account in BPI Direct, you agree and is
bound by its Terms and Conditions which is deliberately stated if you open thelink
that directs to it.
• Maxi-Saver Saving
• Maxi-One Checking
• Time Deposits
• Auto Loan
• Housing Loan
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BPI DIRECT EXPRESS TELLER SAVINGS
Opening an Express Teller Savings Account enables the owner to monitor and
manage their accounts anytime, anywhere through the Bank’s “superior electronic
channel”. (See Appendix A for Balance Requirements and Rates.)
• Earn high interest on your deposit -- better than other regular savings
accounts.
• Access your account through over 9,000 Expressnet, Bancnet, and Megalink
ATMs nationwide.
• Withdraw cash from over 1 million Cirrus-affiliated ATMs in over 210 countries
worlwide in the currency of the country you are in.
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• Deposit cash anytime, real-time without the assistance of a branch teller
through the Bank's Express Deposit Machine. Your cash deposit will be
credited to your account in an instant!
• Plus, your Express Teller Savings comes with a partner savings account -- BPI
Direct Save-Up. It allows you to save automatically, just choose how much
and how often and we'll do the rest for you. This means you never have to
worry about setting aside money again, it will be automatic!
BPINOY SAVINGS
Opening a BPInoy Savings Account safeguards overseas remittances and directly
credits them to an account. (See Appendix A for Balance Requirements and Rates.)
BPInoy Savings Accounts offer the following benefits: BPI Direct Savings Bank |March 2011
• Earn higher interest, better than any other regular savings account.
• Access your account through over 9,000 Expressnet, Bancnet, and Megalink
ATMs nationwide.
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• Withdraw cash from over 1 million Cirrus-affiliated ATMs in over 210 countries
worlwide in the currency of the country you are in.
• Enjoy cashless shopping via the Express Payment System (EPS) at accredited
establishments nationwide. No enrollment required.
• Monitor your account balance, transfer funds, pay bills or reload cellphones
through BPI ATMs, BPI Express Phone, BPI Express Online or even via your
cellphone with BPI Express Mobile.
• “Savings that's easy to start and build. Start your Save-Up account with
no initial deposit. Build it up regularly from your ATM-based savings account
while enjoying a higher interest rate.
• Save what you can, when you can. Decide how much you want to save
every payday or every month and it will automatically be transferred from
your ATM-based savings account to your Save-Up account. When you have
extra cash, no need for you to wait for your automatic schedule transfer - you
can transfer funds anytime to your Save-Up account.
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• Secure savings, secure future. To help you build your funds, your Save-Up
account does not come with an ATM card. This way you can really resist from
withdrawing the funds you're saving.
• Feel even more secure with FREE BPI-Philam Life insurance. Get FREE
life insurance coverage with your Save-Up acount. No medical check-ups or
premium payments required. The amount of your coverage is equal to as
much as 10x your account balance* up to PhP 4 million!
• Monitor your savings with the help of the Save-Up Info Card. Your
Save-Up account comes with an Info Card that contains your account
number, card number and Joint Account Indicator (JAI). This information is
important when viewing your account. The Info Card also serves as proof of
your FREE BPI-Philam Life Insurance.
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F IGURE 8 BPI DIRECT M AXI -S AVER A D
• “Earn more as you save more. Get higher interest as you build your
account balance. Maxi-Saver is the deposit product that gives you more
opportunities to maximize your deposits.
• Enjoy flexible and ready access to your funds. BPI Direct Maxi-Saver
Savings comes with an Express Teller ATM card that allows you to
conveniently manage and access your account 24/7 through the Bank's
superior electronic banking channels -- BPI Express Online, BPI Express Phone
and BPI Express Mobile. You can even open an account anytime -- online.”
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F IGURE 9 BPI D IRECT M AXI -O NE A D
• Access your account through over 9,000 Expressnet, Bancnet, and Megalink
ATMs nationwide.
• Withdraw cash from over 1 million Cirrus-affiliated ATMs in over 210 countries
worlwide in the currency of the country you are in.
• Conveniently settle your financial obligations through checks which could also
serve as proof of your payment.
Apply for a Stop Payment Order (SPO) even after banking hours.
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BPI DIRECT TIME DEPOSITS
Time deposits offer guaranteed and are covered by Philippine Deposit Insurance
Corporation (PDIC). “It is therefore a risk-free outlet for your money and a great
alternative to savings accounts when you are looking for higher yields and don’t
need access to your funds for a while. BPI Direct offers opening a Time Deposit
Account online, with no papers certificates to be issued so the hassle of going to a
BPI branch can be cut off. And the confirmation for the respective placement fee will
be sent via the customer’s registered personal e-mail. Time deposit placements are
renewed automatically at maturity unless a written notice of an intention not to
renew is received from the customer owning the account. (See Appendix B for Time
Deposit Rates)
The following benefits of opening a Direct Maxi-One Checking Account are itemized
as follows:
• Roll-over your placement automatically at the current market rate.* BPI Direct Savings Bank | 3/1/2011
• Choose between two interest payment options:
• Receive notification on your maturing TD via email; you can also view details
of your TD in BPI Express Online.
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• Open an account anytime -- online. Available only to clients who have
individual BPI, BPI Family Savings Bank or BPI Direct peso savings or checking
accounts enrolled in BPI Express Online.
“Here’s why:
• Loan Purpose: You can use your BPI Direct Auto Loan to buy a brand new car,
an Asian Utility Vehicle (AUV), a Light Commercial Vehicle (LCV) or selected
brands of used passenger cars not more than 5 years old.
• Loan Amount: Enjoy up to 80% of the suggested retail price for brand new
vehicles and up to 70% of appraised value of second hand vehicles.
Minimum loanable amount is Php 100,000.
• Interest Rate: BPI Direct offers very competitive rates, one of the lowest in
the market. (For current auto-loan rates, see Appendix E)
• Timely Response: Once BPI Direct receives the complete information needed
from you, you will receive feedback within 24 hours for Metro Manila-based
and 72 hours for applicants outside of Metro Manila.
Pre-processing requirement involves a filled-out application for that you can find
online.
(For Online Auto Loan Online Calculator, see Appendix D. And to view the Truth in
Lending Act, see Appendix C.)
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BPI Direct offers a Housing Loan with lower rates so its customers can have their
dream house easier and more affordable.
“Here’s why:
• Loan Purpose: You can use your BPI Direct Housing Loan to:
construct a house
• Loan Term: You can pay your housing loan up to 15 years depending on
your collateral:
• Interest Rate: Choose from any of our low rates fixed for 1, 3, 5 years or up BPI Direct Savings Bank | 3/1/2011
to the end of your loan term (For housing loan rates, see Appendix F)
• Timely Response: Once BPI Direct receives your online application form,
you will receive feedback within 24 hours for Metro Manila-based and 72
hours for applicants outside of Metro Manila.
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• Eligibility Criteria: If you have been employed or in business for the last 2
years with a minimum gross monthly income of Php 50,000, you are qualified
to apply for a BPI Direct Housing Loan.
• Pre-Processing Requirements:
1. Income Documents
Latest ITR
2. Collateral Documents
Building permit
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(For Online Housing Loan Calculator, See Appendix G. To view the Truth in Lending
Act, see Appendix C.)
Here are the frequently asked questions (FAQ) regarding the Seafarer’s Loan, as
answered by BPI Direct:
The BPInoy Seafarer's Home Loan Program was especially packaged by BPI
Direct in partnership with its accredited Manning Agency clients for qualified
seafarers and employees. Through this Program, you are assured of low
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These are the months in a year when you do not have an active contract with
any shipping company.
4. How can BPI Direct help me pay my monthly amortization during these off-
board months?
This is what is special about the BPInoy Seafarer's Home Loan Program. Your
payment schedule was programmed such that the monthly payments you
make during your contract period are sufficient to answer for the required
monthly payments during your off-board months.
We guarantee that your loan rates will be one of the lowest in the market.
Yes, you can still qualify as long as your minimum monthly salary is
P40,000.00.
11.Can a property located outside of Metro Manila still qualify for this loan
program?
Yes, BPI Direct will process loans for properties outside of Metro Manila.
12.Who are your partner real estate developers? Can I purchase a property from
other developers?
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Currently, our partners are Avida Land and Ayala Land. Yes, you can
purchase a property from other developers and still qualify to apply for the
BPInoy Seafarer's Home Loan.
13.How can I apply for the BPInoy Seafarers Home Loan Program?
Simply log on to www.bpidirect.com and choose Learn More under Loans. You
may also call BPI Express Phone 89-100.”
PROMOS
“Real Thrills on Maxi-Savers and Get Started” Promo
Promo Overview
“Open or add to your existing account now and enjoy exciting summer perks for
every deposit of at least Php 150,000 for Get Started and Php 250,000 for Maxi-
Saver.
Fly or drive to the destination of your choice or shop at your favorite store. The
Get the most out of your savings with rewards that you truly deserve.”
Promo Mechanics
1. Promo is open to new or existing BPI, BPI Family Savings Bank or BPI Direct
Savings Bank individual accountholder.
2. Participating products are Maxi Saver and Get Started savings account.
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Product Amount
Get Started (Peso or
P150,000
Dollar)
Maxi-Saver(Individual) P250,000
5. Qualified accountholders will receive a gift certificate worth P500 that can be
used for purchases at :
- Cebu Pacific
- Bench Group
6. Promo availment is for every deposit made for a minimum of P150K for Get
Started and P250,000 for Maxi Saver. The client will be entitled to Php500
worth of GC for every Php150K or Php250K for Get Started or Maxi-Saver
respectively.
7. Required minimum fresh fund deposit will be put on hold for 3 months
8. Fresh fund deposit should not be sourced from an existing BPI, BPI Family
Savings Bank or BPI Direct Savings Bank account.
9. To claim the complimentary gift/s, client must fill-out the Claim Certificate
and submit to the branch where the deposit was made.
10.Complimentary gift will be delivered to the branch where the deposit was
made. Turn around time for the processing of claims will be as follows:
12.Gift certificates are valid for one year after date of issuance.
14.All new account openings are subject to existing policies and procedures of
the Bank.
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15.In case of dispute, the decision of the BPI Unibank, with concurrence of DTI
will be final.
Promo will run from March 14 to May 13, 2011.Per DTI-NCR Permit No. 2134, Series
of 2011
Promo Overview:
“Get a free checkbook that comes with a checkbook wallet by simply opening a BPI
Checking Account with a minimum deposit of Php 40,000 or Php 80,000.”
Promo Mechanics:
Required Initial
Complimentary Gift
Deposit
Individua Checkbook + Checkbook
40,000
l wallet
BPI Direct Savings Bank | 3/1/2011
Corporat Checkbook + Checkbook
80,000
e wallet
Promo is open to all Individual and Corporate clients of BPI/BPI Family Savings
Bank and BPI Direct Savings Bank**.
2. Initial deposit should not be sourced from an existing BPI, BPI Family Savings
Bank or BPI Direct Savings Bank account.
3. Promo availment is for every new account opened for a minimum of Php
40,000 for Individual and Php 80,000 for Corporate (or the required initial
deposit whichever is higher).
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4. Clients can automatically claim their gifts from the branch where they
opened the account.
6. In case of dispute, the decision of the BPI Unibank with concurrence of DTI,
will be final.
**BPI Family Savings Bank and BPI Direct Savings Bank are wholly-owned
subsidiaries of Bank of the Philippine Islands
*Promo conditions apply. Per DTI-NCR Permit No. 1472, Series of 2011
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7.
APPENDIX A
Savings and Checking Rates
BPI Direct None Php 1,000 Php 1,000 Less than Php 1,000 N.A.
Save-Up
Automatic 1,000 - 399,999 1.000%
Savings +
Insurance 400,000 and above 2.000%
Maxi- Php 25,000 Php 25,000 Php 25,000 Less than Php 25,000 N.A.
Saver4Saving
s with ATM 25,000 - 299,999 1.375%
1M and up 1.750%
1
ADB refers to Average Daily Balance, which is defined as the sum of the daily end-of-day balances in the account for a
month divided by the number of days in that month. The formula for computing ADB is as follows:
ADB = (Day 1 ending balance + Day 2 ending balance …+ Day 30/31 ending balance)
Number of days in the month (i.e. 30/31 days)
2
Daily Balance is equivalent to end-of-day balance.
3
Interest earned shall be credited quarterly to your savings (except for Maxi-Saver where interest earned is credited
monthly) and/or current account(s) provided that the account has not been closed prior to schedule of interest crediting.
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Source:
http://www.bpidirect.com/page/view/savings-and-checking-rates
APPENDIX B
Time Deposit Rates
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Source:
http://www.bpidirect.com/page/view/time-deposit-rates
APPENDIX C
Truth in Lending Act
MICROFINANCE LAWS & ISSUANCES
REPUBLIC ACT No. 3765 June 22, 1963
REQUIRING THE DISCLOSURE OF FINANCE CHARGES
________________________________________
Section 1.
Section 2.
Declaration of Policy. It is hereby declared to be the policy of the State to protect its
citizens from a lack of awareness of the true cost of credit to the user by assuring a
full disclosure of such cost with a view of preventing the uninformed use of credit to
Section 3.
(1) "Board" means the Monetary Board of the Central Bank of the Philippines.
(2) "Credit" means any loan, mortgage, deed of trust, advance, or discount;
any conditional sales contract; any contract to sell, or sale or contract of sale
of property or services, either for present or future delivery, under which part
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or all of the price is payable subsequent to the making of such sale or
contract; any rental-purchase contract; any contract or arrangement for the
hire, bailment, or leasing of property; any option, demand, lien, pledge, or
other claim against, or for the delivery of, property or money; any purchase,
or other acquisition of, or any credit upon the security of, any obligation of
claim arising out of any of the foregoing; and any transaction or series of
transactions having a similar purpose or effect.
(3) "Finance charge" includes interest, fees, service charges, discounts, and
such other charges incident to the extension of credit as the Board may be
regulation prescribe.
(4) "Creditor" means any person engaged in the business of extending credit
(including any person who as a regular business practice make loans or sells
or rents property or services on a time, credit, or installment basis, either as
principal or as agent) who requires as an incident to the extension of credit,
the payment of a finance charge.
Section 4.
Any creditor shall furnish to each person to whom credit is extended, prior to the
consummation of the transaction, a clear statement in writing setting forth, to the
extent applicable and in accordance with rules and regulations prescribed by the
Board, the following information:
(3) the difference between the amounts set forth under clauses (1) and (2);
(4) the charges, individually itemized, which are paid or to be paid by such
person in connection with the transaction but which are not incident to the
extension of credit;
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(6) the finance charge expressed in terms of pesos and centavos; and
(7) the percentage that the finance bears to the total amount to be financed
expressed as a simple annual rate on the outstanding unpaid balance of the
obligation.
Section 5.
The Board shall prescribe such rules and regulations as may be necessary or proper
in carrying out the provisions of this Act. Any rule or regulation prescribed
hereunder may contain such classifications and differentiations as in the judgment
of the Board are necessary or proper to effectuate the purposes of this Act or to
prevent circumvention or evasion, or to facilitate the enforcement of this Act, or any
rule or regulation issued thereunder.
Section 6.
(a) Any creditor who in connection with any credit transaction fails to disclose
to any person any information in violation of this Act or any regulation issued
thereunder shall be liable to such person in the amount of P100 or in an
amount equal to twice the finance charged required by such creditor in
connection with such transaction, whichever is the greater, except that such
liability shall not exceed P2,000 on any credit transaction. Action to recover
such penalty may be brought by such person within one year from the date of
the occurrence of the violation, in any court of competent jurisdiction. In any
action under this subsection in which any person is entitled to a recovery, the
creditor shall be liable for reasonable attorney's fees and court costs as
determined by the court.
(b) Except as specified in subsection (a) of this section, nothing contained in BPI Direct Savings Bank | 3/1/2011
this Act or any regulation contained in this Act or any regulation thereunder
shall affect the validity or enforceability of any contract or transactions.
(c) Any person who willfully violates any provision of this Act or any regulation
issued thereunder shall be fined by not less than P1,00 or more than P5,000
or imprisonment for not less than 6 months, nor more than one year or both.
(d) No punishment or penalty provided by this Act shall apply to the Philippine
Government or any agency or any political subdivision thereof.
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(e) A final judgment hereafter rendered in any criminal proceeding under this
Act to the effect that a defendant has willfully violated this Act shall be prima
facie evidence against such defendant in an action or proceeding brought by
any other party against such defendant under this Act as to all matters
respecting which said judgment would be an estoppel as between the parties
thereto.
Section 7.
Source:
http://www.bpidirect.com/page/view/truth-in-lending-act
APPENDIX D
Calculator – Auto Loan
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BPI Direct Savings Bank | 3/1/2011
Source:
http://info.bpiexpressonline.com/bpiprod/prodserv.nsf/Loans/AutoLoanCalc
ulator
APPENDIX E
Auto Loan Rates
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Brand New Cars
Source:
http://www.bpidirect.com/page/view/auto-loan-rates
APPENDIX F
Housing Loan Rates
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HOUSING LOAN
Tenor Inter
est
Rate
s
Yearly 8.75
%
2-3 years 9.75
%
4-5 years 10%
6-10 years 11%
11-15 years 11.25
%
16-20 years 11.50
%
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Source:
http://www.bpidirect.com/page/view/housing-loan-rates
APPENDIX G
Housing Loan Calculator
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Source:
http://info.bpiexpressonline.com/bpiprod/prodserv.nsf/Loans/HousingLoan
Calculator
APPENDIX H
Service Fees
(Account Maintenance and Transaction Fees)
AUXILIARY SERVICES
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Particulars Amount of Fee / Charge
ATM Card Replacement Php 100.00
Bank Certification Php 100.00
Statement Request from Express Phone free of charge
Statement Request from Bank Statement Unit
- First three pages Php 100.00
- For every succeeding page Php 10.00
Request for Microfilm Reproduction of Bank Documents
- First three pages Php 100.00
- For every succeeding page Php 31.00
Manager's Check Php 50.00
Peso Checkbook
- Personal Php 175.00
- Commercial Php 350.00
Peso Telegraphic Transfer
- Fee ¼ of 1% of amount
- Plus DST Php 0.30 for every Php 200.00
- Subject to a minimum of Php 100 plus Php 1.50 DST
Sale of Traveller's Checks
- Fee 0.5% of amount
- Subject to a minimum of Php 50.00
- Plus DST, if to be paid in Pesos Php 0.30 for every Php 200.00
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PCHC CHARGES
*** If a check for Php 35,000 was presented for clearing on a Friday and was funded
on Monday, total charge would be Php 1,600 (Php 1,000 fixed fee + Php 200 x
3days)
**** If a check for Php 35,000 was presented for clearing on a Friday and was
***** Checks that are post / stale dated, irregularly dated (i.e. February 30) &/or
unsigned are not subject to the technicality fee.
Source:
http://www.bpidirect.com/page/view/account-maintenance-and-
transaction-fees
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BIBLIOGRAPHY
Websites:
“BPI Direct Savings Bank Official Website”. http://www.bpidirect.com/.
Pages:
“Bank of the Philippine Islands”.
http://en.wikipedia.org/wiki/Bank_of_the_Philippine_Islands. Retrieved March
27, 2011.
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“Real Thrills on Maxi-Savers and Get Started”.
http://www.mybpimag.com/index.phpoption=com_ content&
view=article&id=700&Itemid=843. Retrieved March 28, 2011.
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