Strategic management paper for the Development Bank of the Philippines

• Main Author: Rafael, May Ann L.
• Format: text
• Language: English
• Published: Animo Repository 1999
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2241
• Institution: De La Salle University

Development Bank of the Philippines (DBP), formerly Rehabilitation Finance Corporation, is established in January 02, 1947 under Republic Act No. 85. Its function is to rehabilitate the country damaged by war providing credit facilities for the development of agriculture, commerce and industry. As a development bank, it is tasked to spur development providing cheap funds for enterprises that will create social and economic impact. After 52 years, DBP still continue its development mission as it faces the challenges of the time brought by rapid globalization. It can no longer depend on the government for financing and it is required to remit thirty percent (30%) of its income to the national government in the form of dividends when previously it was being ploughed back to operation for lending purposes. Because of slow economic growth and intense competition, it is pressured to commercialize its operations to attain financial viability which runs counter to the governments thrust of serving the medium and long-term requirement of agriculture and small to medium scale enterprises, export development and government mandated projects. Extending credit to these borrowers that other financial institutions reject overrides its focus on profitability. The strategies proposed in this paper focused on expanding its branch network, forming partnership with Local Government Sectors and Y2K assistance to SMEs. In support of the corporate strategies, the functional strategies include the creation of a Relationship Banking Unit, Upgrade of Information System, Continues Training and Value Formation Workshop for its Human Resource, sharing of operations a with the commercial banks for its international operations and a Quality Service Program to better serve its clientele. DBP has to formulate new strategies so that it can achieve its vision of becoming the leading financial institutions on the Philippines.