Leslie Ann C.

Tenio
BA 105
April 27, 2019

Case: Manila Savings Bank

SUMMARY
Manila Savings Bank is one of the largest savings bank which got its success by
accommodating even the small depositors.
Mr. Villanueva is the VP for Corporate Planning (CorPlan) unit and the brain behind the Cost
of Deposit report (CoDep) to be generated monthly to be the basis for continuously adjusting the
interest rates they’re willing to risk. Interest earned by the depositor means interest expense on the
part of the bank. Increasing such would mean an increase on the interest cost which also would
force the company increase the loan rates.
All branches of the bank shall submit the necessary data needed by the CorPlan to generate
the CoDep report. Such include the different TD packages (term and interest, as well as the
outstanding balances of such packages), savings account and outstanding balances, and checking
accounts. It was viewed as an easy task but if a branch has a big volume of transactions, it becomes
tedious.
Apart from monitoring the interest rates and cost, the CoDep report still has other usage,
according to the bank’s comptroller. (1)It provides basis for evaluating the branch’s performance in
terms of holding down costs. (2)It provides basis for evaluating the performance of the branch
managers since some TDs are negotiated-if they can sell low cost packages, the cost of deposit is
also relatively low.
On the first month of the CoDep’s introduction, it was welcomed with enthusiasm. But on
the succeeding months, data (source documents) from the branches necessary to generate the
CoDep always come in very late (even after sending memos) to the point that during the July staff
executive meeting, the CoDep wasn’t presented because of the same reason. The VP for branches
reasoned out that the cause of the delay is because people in the branches actually don’t know how
to fill in the necessary information needed by the CorPlan unit. However, Mr. Villanueva, the VP for
CorPlan reiterates that they disseminated copies of manual on how to properly accomplish the
forms to the branches even conducted seminar regarding the matter.

OBJECTIVE
CorPlan unit created the CoDep with the objective of constantly monitoring the interest cost
of the time deposit, savings deposit, and checking accounts. That’s why it is of a must that branches
will provide the source documents monthly, without delay, because the CoDep report that will be
generated out of those source documents is necessary to evaluate the interest rates that the bank
will offer to their depositors.

PROBLEM
The branches submitted the source documents late on the succeeding months because
according to the VP for branches employees didn’t know how to accomplish the forms.

ALTERNATIVE COURSE OF ACTION

1. Conduct another seminar on the importance of the CoDep report as well as how to
accomplish the forms necessary.
2. Create an open communication or establish a focal person whom branch staffs can ask
for help or to clarify things regarding the source documents.
3. Memos shall be disseminated to constantly remind the branches of their deliverables.
 4. Meet with the bank managers to reiterate that one of the purpose of CoDep report is to
evaluate their performances as bank managers and it is their responsibility to deliver
what is ask of them
5. Memos release should go through the VP for branches and a constant reminder from
him towards his branches of responsibility is necessary

CONCLUSION/RECOMMENDATION
More than the staff not knowing how to accomplish the reports, considering that according
to VP for CorPlan seminars have been conducted on how to accomplish the said reports, I think the
cause of delay is the lack of ample time to prepare them. It has been stated that if the branch has a
big volume of transaction, then the task could become tedious. So instead of accomplishing paper
works, why not go real time? Meaning, a software program shall be created where branches can
directly send the monthly transactions and the newly hired clerk shall be the one to extract the
information needed to generate the CoDep report. Less paper work and at the same, it’s timelier.