M A N U E L L. Q U E Z O N U N I V E R S I T Y

SCHOOL OF ARCHITECTURE

RESEARCH PAPER ON

A BRANCH BANK(PLATE NO. 2)

Submitted by:Ginez, Errol Q.

Student No.: 15-00407

Submitted to: Ar. Christian R. Cabanilla, RLA, RMP

Design 5 Professor

I.The Early Years

The Philippine National Bank was established as a government-owned banking institution on July 22, 1916 with headquarters in the old Masonic Temple along Escolta, Manila. Its primary mandate was to provide financial services to Philippine industry and agriculture and support the government's economic development effort. World War I, then raging in Europe, generated huge demand for the country's major exports namely: sugar, copra, coconut oil, Manila hemp and tobacco. However, not much was being done to develop the industries that produced these sought-after crops since access to credit facilities was limited then. To solve this problem, Henderson Martin, Vice Governor of the Philippines, together with Mr. Miguel Cuaderno (who later became Central Bank governor) drafted the charter for a national bank.

In February 4, 1916, Public Act 2612 was passed by the Philippine legislature providing for the establishment of the PNB to replace the small P1 million government-owned Agricultural Bank. PNB's first head office was the Masonic Temple along Escolta, the then "Wall Street of the Philippines" in the bustling district of Sta. Cruz in Manila. An American, H. Parker Willis, was its first president.

"The First Universal Bank in the country"With PNB's establishment, Filipinos found a bank of their own. PNB was authorized to grant short and long-term loans to agriculture and industry. The Filipino farmers then could avail of loans with interest between 8% to 10% per annum. PNB was also authorized to receive deposits, open foreign credits and rediscount bills. It was also given the special power to issue circulating notes. As such, PNB functioned as the de facto Central Bank of the country until 1949.

On July 24, 1916, PNB established its first branch in Iloilo.

In 1917, PNB marked its entry in the field of international banking when it opened its New York Branch. The following year, it established five more domestic branches and another overseas branch in Shanghai, China.

PNB briefly ceased operations in January 1942 but reopened the next month under the supervision of Japanese authorities. After the Second World War, PNB reopened immediately and acquired the assets and assumed the liabilities of the banking division of the National Treasury.

With the establishment of the Central Bank in 1949, PNB's role as issuer of currency notes, custodianship of bank reserves, sole depository of government funds and clearing house of the banking system ceased."PNB launched the first on-line Electronic Data Processing System in the entire Far East"

In 1955, it was authorized to operate as an investment bank with powers to own shares and to issue debentures. In 1963, it established the National Investment and Development Corporation to engage primarily in long-term and equity financing of business ventures.

PNB transferred to its new Head Office along Escolta in 1966 and launched the first on-line Electronic Data Processing System in the entire Far East.

Between 1967 and 1979, PNB continued to expand its operations by opening offices in London, Singapore, Djakarta, Honolulu and Amsterdam. In the domestic field, it opened 14 provincial branches. It was also during this period that the Bank started the Dollar Remittance Program.

In 1980, PNB became the first universal bank in the country. However, it encountered operational difficulties in the mid-80s as a result of the economic downturn triggered by the assassination of Senator Benigno S. Aquino, Jr and had to be assisted by the government in 1986.

Privatization of PNB

The privatization of the Bank started when 30 per cent of its outstanding stocks was offered to the public and its stocks were listed in the stock exchange in 1989.

In 1992, PNB became the first Philippine bank to reach the P100 billion mark in assets.

Also in 1992, a second public offering of its shares was issued to continue its privatization.

In 1995, the Bank moved to its new headquarters at the PNB Financial Center in Roxas Boulevard, Pasay City.

In 1996, the Securities and Exchange Commission approved the Bank's new Articles of Incorporation and by-laws and the change in the status of PNB from a government-based to a private corporation with the control of the government reduced to 46 per cent. At the turnover rites on July 23, 1996, President Fidel V. Ramos declared:

PNB is the bank for the Filipino wherever he or she may be-- in the country's centers of commerce and industry, in the far reaches of the countryside, and even in many places across the globe."

A New Beginning

In 1999, a group of new private stockholders led by Dr. Lucio C. Tan acquired approximately 35% of the total outstanding capital stock of PNB. In early 2000, the group increased its share

in the Bank to 69.32% and pumped in nearly P20 billion fresh capital in less than one year. This was done to emphasize the commitment of the new stockholders to the improvement of the Bank's financial condition, which had been incurring losses in operations due to poor asset quality.

In late 2000, the Bank suffered a liquidity crisis and the National Government stepped in to support the Bank by implementing a capital restructuring and injecting P25 billion in liquidity assistance.

In May 2002, the Government and the Lucio Tan Group, representing the group of private stockholders, sealed the Memorandum of Agreement (MOA) that embodied the provisions that would help turn the Bank around. It included, among others, the settlement of Government's liquidity assistance by way of increasing the Government's stake in the Bank from 16.58% to 44.98%, in effect reducing the group’s share from 68% to 44.98%. At the same time, the Bank started operating under a 5-year rehabilitation program.

In August 2005, the Government, as part of its privatization program, sold down its 32.45% stake in the Bank via an auction. The private stockholders represented by the Lucio Tan Group exercised their right of first refusal, reducing the Government’s share to 12.5% and raising the group’s to a total of 77.43%.

In June 2007, PNB settled its P6.1 billion loan to Philippine Deposit Insurance Corporation (PDIC), more than four years ahead of the loan’s due date. The loan repayment was a clear indication of the Bank’s renewed financial health.

In August 2007, the Bank completed its Tier 1 follow-on equity offering where it raised about P5.0 billion in Tier 1 capital. Together with the sale of 89 million primary shares, 71.8 million secondary shares owned by the National Government through PDIC and DOF were sold to the public, thus bringing about a complete exit of the Government from PNB.

Since the inception of the rehabilitation program, PNB exceeded the targets of the program. While the program called for profits starting 2005, the Bank became profitable as early as 2003. Within four years, PNB increased its net income sixteen times from P52 million in 2003 to P820 million in 2006.

With its successful exit from the Government’s Rehab program and the strong income performance, PNB has demonstrated its ability to sustain its heightened competitiveness based on the three tenets of reducing non-performing assets, strengthening core businesses and increasing profitability.

The Bank remains as one of the largest banks in the country with a wide array of competitive banking products to answer for the diverse needs of its huge clientele including more than 2 million depositors.

PNB maintains its leadership in the overseas remittance business with remittance centers in the United States, Canada, London, France, Italy, Hong Kong, Japan, Singapore and the Middle East countries.

Through its subsidiaries, the Bank also engages in a number of diversified financial and related businesses such as remittance servicing, investment banking, non-life insurance, stock brokerage, leasing and financing and foreign exchange trading. The Bank, through its affiliate, is also engaged in other services such as life insurance.

II.III.IV.

Bank of America (abbreviated as BofA) is an American multinational banking and financial services corporation headquartered in Charlotte, North Carolina. It is the second largest bank holding company in the United States by assets.[6] As of 2013, Bank of America is the twenty-first largest company in the United States by total revenue. In 2010, Forbes listed Bank of America as the third biggest company in the world.[7]

This segment provides its products and services through operating 5,100 banking centers, 16,300 ATMs, call centers, and online and mobile banking platforms. Its Consumer Real Estate Services segment offers consumer real estate products comprising fixed and adjustable-rate first-lien mortgage loans for home purchase and refinancing needs, home equity lines of credit, and home equity loans.[8]

The bank's 2008 acquisition of Merrill Lynch made Bank of America the world's largest wealth management corporation and a major player in the investment banking market.[9] According to

the Scorpio Partnership Global Private Banking Benchmark 2014 it had assets under management (AuM) of 1,866.6 (USD Bn) an increase of 12.5% on 2013.[10]

The company held 12.2% of all bank deposits in the United States in August 2009,[11] and is one of the Big Four banks in the United States, along with Citigroup, JPMorgan Chase and Wells Fargo—its main competitors.[12][13] Bank of America operates—but doesn't necessarily maintain retail branches[14]—in all 50 states of the United States, the District of Columbia and more than 40 other countries. It has a retail banking footprint that serves approximately 50 million consumer and small business relationships at 5,151 banking centers and 16,259 automated teller machines (ATMs).[4]

Bank of America has been the subject of several lawsuits and investigations regarding both mortgages and financial disclosures dating back to the financial crisis, including a record settlement of $16.65 billion on August 21, 2014.[15][16][17]

Consumer[edit]

Consumer Banking is the largest division in the company, and provides financial services to

consumers and small businesses. The acquisition of FleetBoston and MBNA significantly expanded

its size and range of services, resulting in about 51% of the company's total revenue in 2005. It

competes primarily with the retail banking arms of America's three other

megabanks: Citigroup, JPMorgan Chase, and Wells Fargo. The Consumer Banking organization

includes over 5,800 retail branches and over 18,000 ATMs across the United States.

Bank of America offers banking and brokerage products as a result of the acquisition of Merrill

Lynch. Savings programs such as "Add it Up"[93] and "Keep the Change" have been well received and

are a reflection of the product development banks have taken during the 2008 recession.

Bank of America, N.A is a nationally chartered bank, regulated by the Office of the Comptroller of the

Currency, Department of the Treasury.

Corporate[edit]

Before Bank of America's acquisition of Merrill Lynch, the Global Corporate and Investment Banking

(GCIB) business operated as Banc of America Securities LLC. The bank's investment banking

activities operate under the Merrill Lynch subsidiary and provided mergers and

acquisitions advisory, underwriting, capital markets, as well as sales & trading in fixed income and

equities markets. Its strongest groups include Leveraged Finance, Syndicated Loans, and mortgage-

backed securities. It also has one of the largest research teams on Wall Street. Bank of America

Merrill Lynch is headquartered in New York City.

Operation

Bank of America branch in Washington, D.C.

Bank of America generates 90% of its revenues in its domestic market and continues to buy

businesses in the U.S. The core of Bank of America's strategy is to be the number one bank in its

domestic market. It has achieved this through key acquisitions.[91]

Investment management

Bank of America has spent $675 million building its U.S. investment banking business and is looking

to become one of the top five investment banks worldwide. "Bank of America already has excellent

relationships with the corporate and financial institutions world. Its clients include 98% of the Fortune

500 companies in the U.S. and 79% of the Global Fortune 500. These relationships, as well as a

balance sheet that most banks would kill for, are the foundations for a lofty ambition." [94]

International operationsBank of America operated under the name BankBoston in many other Latin American countries, including Brazil. In 2006, Bank of America sold BankBoston's operations to Brazilian bank Banco Itaú, in exchange for Itaú shares. The BankBoston name and trademarks were not part of the transaction and, as part of the sale agreement, cannot be used by Bank of America (ending the BankBoston brand).

2.Suggestions and Recommendation

Company ProfileBDO is an institution that honors its past, continues to improve on its present, and moves towards the future with confidence and strength.

BDO is a full-service universal bank in the Philippines. 

BDO has one of the largest distribution networks, with 760 operating branches and over 1,800 ATMs nationwide.

As of 30 September 2012, BDO is the country's largest bank in terms of total resources, capital, customer loans, total deposits and assets under management.

BDO is a member of the SM Group, one of the country's largest and most successful conglomerates with businesses spanning between retail, mall operations, property development (residential, commercial, resorts/hotel), and financial services.

Recommendations

DEPOSITSBank should offer no-frill savings accounts with certain basic facilities such as cheque book and ATM card without prescribing any minimum balance.All fixed deposit receipts should prominently indicate the annualised interest rate to help customers take more informed decisions.The Indian Banks Association should standardise the account opening form for all banks, similar to the one used for loans.REMITTANCESBanks should facilitate electronic transfer of the demand draft amount to the receiving institution and issue a numbered tear-away receipt to reduce time and cost.Banks should be allowed to issue prepaid cards with a maximum withdrawal limit of Rs 50,000 every day. This will reduce customers' dependence on cash.Users of electronic bank platforms(utilities, airlines, railways) for making collections should offer small discounts to customers to popularise electronic payment.LOANSBanks should be careful while reporting a borrower as a defaulter to credit bureaus. Banks must inform the customer before making any adverse remark in credit reports.Title deeds of property should be returned to customers within 15 days of the the full settlement of home loans.Banks should allow home loan borrowers to switch from fixed to floating rate and vice versa at least once during the tenure of the loan.

Areas of ConsiderationExternal EnvironmentInternal EnvironmentThreatsOpportunitiesWeaknessesStrengthsVolatility of the marketCompetition against other banksLosing of prospective clients

Growing economy of the Philippines Increased number of depositors Increased client borrowing

Extended banking hours Several Operating Branch Networks and ATM Terminals Record-high annual returns Increased market share versus other banks Recipient of multiple awards from various local and international award-giving bodies for both institutional and product excellence One of the top banks in the Philippines

Outdated system of the bank Employee Relations Convenience to the customers

Landscapeimprove the aesthetic appearance of (a piece of land) by changing its contours, adding ornamental features, or planting trees and shrubs.

Security and safetySecurity is the degree of resistance to, or protection from, harm. It applies to any vulnerable and valuable asset, such as a person, dwelling, community, nation, or organization.

Zoning describes the control by authority of the use of land, and of the buildings thereon. Areas of land are divided by appropriate authorities into zones within which various uses are permitted.

circulation refers to the way people move through and interact with a building.

A service-oriented architecture (SOA) is anarchitectural pattern in computer software design in which application components provide services to other components via a communications protocol, typically over a network.

LIGhtning the design of lighting systems, including natural light, electric light, or both, to serve human needs

 noise to avoid from annoying and harmful sound.

Accessibility refers to the design of products, devices, services, or environments for people with disabilities.[1] The concept of accessible design ensures both “direct access” (i.e. unassisted) and "indirect access" meaning compatibility with a person's assistive technology (for example, computer screen readers).