Corporate strategic plan for China Banking Corporation

• Main Author: Arriola, Ramon M., Jr.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4658
• Institution: De La Salle University

This strategic management paper is written for the purpose of proposing strategies for CHINA BANKING CORPORATION that will help in attaining its corporate goals. China Banking Corporation (CBC) was incorporated on July 20, 1920 and commenced business in August 16 of the same year as the first privately owned commercial bank in the Philippines. It was founded by a well-respected business leader and philanthropist Dee C. Chuan and bar topnotch Don Albino Sycip. CBC was listed on the Philippine stock exchange in 1965 and became the first bank in Southeast Asia to process deposit accounts on-line in 1969 and the first Philippine bank to offer phone banking in 1988. The bank later acquired universal banking license in 1991. CBC provides a wide range of domestic and international banking services, and is one of the largest commercial banks in the country in terms of assets and capital. The Sy family has been the largest shareholder since 1979 holding an aggregate 48.7% of CBC through Sysmart Co., SM Investment, Shoe Mart, and individual family member holdings. Other significant shareholders include the CBC Employees Retirement Fund (2.5%), Jjaccis Development Co. (1.96%), GDSK Development Co., (1.69%) and the International Commercial Bank of China (1.35%). CBC is the 11th largest bank in the Philippines with 141 domestic branches. It has no international presence. The main domestic subsidiaries are CBC Forex, Inc. CBC Insurance Brokers, Inc and CBC Properties and Computer Center, Inc. CBC has always been run professionally, although in a more conservative manner than its peers. The Bank over the past years has retained the majority of its gains from securities in order to build a strong capital base. From 2004, CBC has started to expand more aggressively in markets which it already has good niches. It focuses on lending to the middle market (particularly the Filipino-Chinese) and to corporate clients with manufacturing accounting for 15.70 percent of loan portfolio, followed by financial intermediaries at 22.59 percent, wholesale retail trade at 16.46 percent, and real estate, renting and business services at 15.76 percent. Products and services are distributed among its 141 branches (including the Makati Head Office) network with 80 located in Metro Manila and 61 scattered in the provinces. CBC's long history has been characterized by prudence and conservatism, as well as the values of banking with principle. The Bank's founders with Don Albino Z. Sycip and Dee C. Chuan, have laid the foundations for CBC's business philosophy which is based on commitment to client satisfaction, accountability to shareholders and stakeholders, and respect for people, the community and the environment. Through the years, CBC has anchored its business on integrity, honesty and professionalism. To support its thrust of governance and principled banking CBC's team is made up of highly competent and dynamic professionals aiming to deliver the various needs of clients. The emphasis of CBC has been the continuous improvement of the people and its service that's why the Human Resources Division had been focusing on developing training grids for all employees to support the expansion program of the bank. CBC's positional advantages are the ability to perform transactions faster and respond quickly to client's needs as compared to other competitors. This has been the benefits of a simpler documentation process like filing out of forms and signing documents. But with the recent changes implemented by BSP, various documents were required which were disputed by clients that is why part of the job is developing good relations with clients and educating them with those changes or developments. Such flexibility in the banking business proves to be a major factor towards growth.