COMMERCIAL BANK MANAGEMENT

What is a Commercial Bank?

Commercial banks are the financial institution which acts as a financial intermediary which collects credit from lenders in the form of deposits and lends in the form of loans.

1) Makes loans to individuals and organizations.

2)Accepts demand deposits and time deposits.

3)Provides services as documentary collections, international banking, trade financing.

Functions of Commercial Banks

Primary functions. Secondary functions including agency

functions.

Primary functions
Accepting deposits Granting loans and advances:

1. Loans 2. Advances

Secondary Functions
Issuing letters of credit, travellers cheques. Undertaking safe custody of valuables, important documents, and securities by providing safe deposit vaults or lockers; Providing customers with facilities of foreign exchange. Transferring money from one place to another; and from one branch to another branch of the bank. Collecting and supplying business information. Issuing demand drafts and pay orders. Providing reports on the credit worthiness of customers.

Difference????
Primary
Main activities of the banks.

Secondary
Secondary activities of the banks.

Main source of income of the banks.

They are not the main sources of the banks.

These are obligatory on the bank to perform.

These are not obligatory on the bank to perform.

THE BOARD OF DIRECTORS

The policy formulating body Elected by stockholders VIRTUE Elect among themselves the:

Chairman President Vice President Secretary Treasurer Comptroller Senior and Junior officer

THE OFFICERS
The Policy implementing body

Duties and Responsibilities

Amend By laws Amend the Articles of Incorporation Increasing and decreasing the authorized capital stock Approves the minutes of the previous annual/special meeting Examining and approving the operations of the bank for the year. Approving the tentative budget for the ensuing year Elects the Board of Directors Delegates authority to distribute earnings to the Board of Directors

Duties and Responsibilities

Elects one member as Chairman Elects the President and CEO Elects the head of the various committees Elects an Executive Secretary Appoints Senior and Junior officers Approves compensation of employees Approves the general assignment of duties and responsibilities of each officer Determines the loaning institutions Approves the amount of surety bonds

Duties and Responsibilities

Determines the loans and investment policies of the bank Approves and decides on all matters involving changes in Capital Account Authorize the maintenance of correspondent bank accounts Approves all loans made to directors etc. Reviews the actions of various committees Appoints an Auditor Formulates policies of the bank

Commitees appointed by the

EXECUTIVE LOANS AND DISCOUNT INVESTMENT TRUST EXAMINATION

The advisory body to the BOARD

Hiring of executive officers Determines their remuneration Reviews administration affairs of the bank Discuss and recommends the adoption or rejection of procedures in the bank Identify problems and find solutions

In charge of all matters regarding loans and discounts Determines the rate of interest to be paid on Time and Savings Deposits. Approves or disapproves loans Authorizes renewal of loans Determines the rate of interest for various types of loans

Concerned on the Banks Investment Portfolio Determines the amount and percentage of demand and time deposits even the capital fund Approves the purchase and sale of securities

Deals with the fiduciary function of the bank Accepts and rejects all new accounts Approves or disapproves investments of all funds in Trust accounts

 Identifies all problems with regards to Audit and examination of the bank. Finds solutions Makes recommendations to the Board of Directors

TOP TEN COMMERCIAL BANKS

1.Banco De Oro (BDO) Php 965.1 billion 2. Metrobank Php 955.8 billion 3. Bank of the Philippine Islands (BPI) Php 751.8 billion 4. Landbank Php 605.2 billion 5. Rizal Commercial Banking Corporation (RCBC) Php 311.2 billion 6. Philippine National Bank (PNB) Php 306.2 billion 7. Development Bank of the Philippines (DBP) Php 297.4 billion 8. Unionbank of the Philippines (UBP) Php 244.9 billion 9. Chinabank Php 235.2 billion 10. Citibank Php 202.6 billion

TOP TEN COMMERCIAL BANKS

1. Banco De Oro (BDO) Php 541.5 billion 2. Bank of the Philippine Islands (BPI) Php 367.9 billion 3. Metrobank Php 363.9 billion 4. Landbank Php 219.9 billion 5. Rizal Commercial Banking Corporation (RCBC) Php 141.8 billion 6. Citibank Php 116.1 billion 7. Philippine National Bank (PNB) Php 102.9 billion 8. Chinabank Php 101.3 billion 9. Development Bank of the Philippines (DBP) Php 100.0 billion 10. Allied Bank Php 91.0 billion

TOP TEN COMMERCIAL BANKS

1. Metrobank Php 98.9 billion 2. Banco De Oro (BDO) Php 86.6 billion 3. Bank of the Philippine Islands (BPI) Php 78.1 billion 4. Landbank Php 58.3 billion 5. Development Bank of the Philippines (DBP) Php 37.2 billion 6. Rizal Commercial Banking Corporation (RCBC) Php 36.0 billion 7. Chinabank Php 31.5 billion 8. Unionbank of the Philippines (UBP) Php 31.2 billion 9. Philippine National Bank (PNB) Php 29.5 billion 10. Security Bank Php 25.5 billion

TOP TEN COMMERCIAL BANKS

1. Banco De Oro (BDO) Php 745.5 billion 2. Metrobank Php 714.7 billion 3. Bank of the Philippine Islands (BPI) Php 604.8 billion 4. Landbank Php 480.9 billion 5. Philippine National Bank (PNB) Php 232.3 billion 6. Rizal Commercial Banking Corporation (RCBC) Php 214.9 billion 7. Unionbank of the Philippines (UBP) Php 195.4 billion 8. Chinabank Php 195.1 billion 9. United Coconut Planters Bank (UCPB) Php 148.5 billion 10. Allied Bank Php 146.2 billion
*all results are based on surveys last March, 2011

COMMERCIAL BANKS in the PHILIPPINES

If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem.