Banque Francaise Manila Offshore Branch

• Main Author: Pelayo, Marline S.
• Format: text
• Language: English
• Published: Animo Repository 1999
• Subjects: Banks and banking > Philippines; Banks and banking; International; International finance; Banque Francaise Manila Offshore Branch
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3925
• Institution: De La Salle University

Since the liberalization of the banking sector which began in 1993, the foreign banks have played a vital role in the Philippine banking sector, since they have significantly encouraged foreign investments to the Philippines. Banque Francaise Manila Offshore Branch (BFMOB) as a foreign bank operating as an Offshore Banking Unit (OBU) once become a major player among OBUs in the Philippines. As new players emerged in the market, the company's market share consequently shrank. Although it has managed to sustain profitability during previous years, the impact of the Asian crisis particularly caused some of BFMOB's core business to slow down, coupled with the emergence of non-performing loans, thus negatively affecting its financial position. This paper attempts to discuss and assess BFMOB's current and proposed strategies in the context of the prevailing environment, both internal and external, and determining their applicability or perceived effectiveness. Primary sources of data regarding corporate strategies (previous, current and proposed) were obtained from annual reports and interviews with BFMOB's department heads. In the conduct of evaluating the company's various strategies, several factors including corporate culture and structure, leadership, and the like, were considered. Finally, some proposed strategies are discussed that would help propel BFMOB back into the profitable slate. Likewise, departmental programs, a strategy-supportive culture, and a tool for strategy-evaluation and control were proposed to effectively implement and monitor the proposed strategies.