Rizal Commercial Banking Corporation
Encyclopedia
The Rizal Commercial Banking Corporation (RCBC) was established in 1960 as a development bank and is licensed by the Bangko Sentral ng Pilipinas
(BSP) for both commercial and investment banking. It is the Philippines' fifth-largest bank by assets, with total consolidated assets of about P185 billion (or US$3.6 billion) as of end-December 2005.
In 1964, RCBC marked a significant presence in the Filipino-Chinese business community with the opening of its first branch in Binondo. In 1967, this foothold was strengthened when Ambassador Alfonso T. Yuchengco, founder of the Yuchengco Group of Companies (YGC), assumed the Chairmanship of the board. Because of his strong ties with the Filipino-Chinese business community and the Bank's excellent record in serving this market, the Filipino-Chinese market has remained to be one of the Bank's major market niches.
Anticipating bigger things to come, RCBC successfully listed its shares in the Philippine Stock Exchange
in 1986. The following year, RCBC diversified into the retail market with the introduction of private banking, home mortgage, car financing and the RCBC Credit Card.
The expanded branch network of 287 branches and 5 extension offices, the opening of foreign offices in Hong Kong (RCBC International Finance, Ltd.) in 1979, in the US (RCBC California International, Ltd.) in 1993 and in Italy (RCBC Telemoney Europe) in 1995 and affiliations with offshore bank
s and money transfer agencies, stabilized the position of RCBC in the remittance business. The Bank now accounts for more than 10% of the remittance business.
On top of a highly rewarding banking business, the bank has equity holdings in companies engaged in power generation, automotive assembly, thrift banking, food manufacturing, etc. These companies are deemed leaders in their respective niches and are in industries with long-term growth potentials. RCBC entered into a joint venture agreement with Honda Cars and Mitsubishi
Corp. of Japan and the Ayala Group to produce the well-engineered and popular Honda cars for the Philippine market. Together with another Yuchengco Group flagship, the House of Investments, and the Enron
Corp., it put up the Subic Power Corp. (SPC), a diesel-fired 116-megawatt power plant built under the Build-Operate-Transfer scheme.
To strengthen its position in the capital market, the bank fully acquired the Philippine Pacific Capital Corp. from its partners and renamed it RCBC Capital Corp. It entered into a joint venture agreement with Isuzu Corp., Mitsubishi Corp. and the Ayala Corp. to form Isuzu Motors Phils. Co., Ltd., which is into the assembly, manufacturing, importation and distribution of AUVs, pick-ups and medium- and big-sized trucks and buses. It has equity participation in Pilipinas Shell Petroleum Corp. In November 1996, RCBC joined Agila Holdings, Itochu and Hacienda Luisita in putting up the Luisita Industrial Park Corp., a 300-hectare industrial park for Japanese investors. Together with Great Pacific Life Assurance Corp., it forged a tie-up (1997) with Japan's largest life insurance company, the Nippon Life Insurance Corp., forming a new joint venture life insurance company - the Nippon Life Insurance Company of the Philippines. Other equity investments of RCBC are in LGU Guarantee Corp, a joint BAP/DBP guarantee institution to cover 85% of local government's unit debts; in Lima Land, Inc., a real estate company involved in the development of a 440 hectare industrial park in Lipa/ Malvar; in KG Investments Holdings, Ltd. with the Koo family and in RCBC Land, Inc., a joint venture between RCBC and Pan Malayan Management and Investments Corporation. The company's maiden project is the RCBC Plaza, the new home of RCBC. The project is a joint venture with the Government (of Singapore) Investment Corporation.
First is through leadership in identified markets: economic/ export zones, consumer lending, the middle loan market, treasury services, asset and cash management services for corporate and retail markets and the overseas remittance business. These are growth areas where the bank has core competencies and areas that would complement its core markets, network and affiliations.
Second is through continued synergy with members of YGC and by drawing experience from years of affiliation with the United Financial of Japan. As a member of the YGC group, RCBC forms part of a financial services conglomerate with strong market competitiveness in insurance and other risk management services. Through this alliance, the bank is able to broaden its network and delivery channels inasmuch as the more than 40 companies forming the YGC group present a huge base of existing and potential clients for consumer banking and finance, treasury, trust and investment services. By synchronizing the group's products and services and its marketing and delivery, RCBC will be able to deepen its products and services and provide greater value-added to all its clients. Likewise, RCBC's long years of partnership with one of Japan's and the world's biggest financial conglomerates provided it with the experience and expertise to strengthen competitiveness among Japanese clients and foreign locators in the country's export zones.
Third is through continuing realignment of the Bank's business divisions. By clearly delineating the markets served in each business division, the Bank is able to allocate resources appropriately, strengthen its relationships with key clients and focus business divisions on key areas that will drive revenue growth, enhance distribution capabilities and allow the Bank to offer a broader range of products and services to its target markets.
Fourth, the Bank shall focus on strategies to improve cost efficiency and achieve service excellence. Wherever possible, back office functions and other support processes are moved out of business centers and centralized in processing centers such that business centers become strong competitive sales outlets with seamless support from the back office and information technology systems. To support these initiatives and to provide a platform for the delivery of new products and services, investments in information technology will continue to be a key strategy.
Fifth, the Bank will continue to pursue enterprise-wide risk management initiatives to ensure the Bank's continued strength and viability in the face of multifarious risks that are present in the various core businesses of banking. It will continue to adopt sound corporate governance practices and structure to promote the continued good health of the Bank for the benefit of all stakeholders.
Holdings Inc. (LEH), and set aside provisions of P 980 million ($ 20.8 million). It stated "the provision will have no adverse effect on its capital base, which stood at P 27.4 billion, or a capital adequacy ratio of 20.97%." RCBC's exposure with Lehman was $ 40 million. BSP data revealed RCBC set aside a buffer
equivalent to 52% percent of its exposure.
Initial reports claimed that two security guards who were supposed to be on their shift were missing, leading authorities to suspect they were involved in the crime as part of an inside job. The bank's vice president, Edwin Ermita, told the Associated Press that the thieves tried to hide the body of a security guard under a tarpaulin in the rear of the bank. Two bank employees' bodies were found in the open vault. The thieves used an employee's vehicle to escape. Up to P 20 million may have been taken in the heist. Five suspects had been identified. Bank employee Isagani Pastor, the lone survivor in the incident that killed 8 RCBC employees and a depositor, died on May 18. Meanwhile, the Commission on Human Rights
investigated the Task Force RCBC shootout
in Pagaspas, Tanauan
, Batangas which killed 4 men, since police investigators were still determining whether they were connected to the Cabuyao, Laguna robbery, and at least 2 law enforcers had been linked to the bloody robbery-massacre. Further, multiple murder
, frustrated murder and illegal possession of firearms cases were filed on May 23, with the Calamba Prosecutors Office against SPO1 Florencio Fiesta, employer of and owner of gun used by Bernabe Fiesta.
The Philippine National Police
on May 30, 2008, also filed with the Biñan, Laguna Regional Trial Court, non-bailable charges of robbery
and multiple murder
against the 6 accused, after the prosecutor Frisco Marfil's inquest: Richard Gomolon, a former Army soldier police; RCBC security guard Joel Dela Cruz; Jesus Narvaez (all currently held by Task Force RCBC); Danilo Letoquit, who arranged the procurement of the getaway vehicle; Allan Bago, and an unidentified male who served as the lookout (all at large). 5 other suspects are being pursued and 2 suspects are also sought for their alleged involvement in other armed robberies in the region. The bank stated that the armed suspects robbed $ 206,890. The Philippine National Police (PNP) on June 11, 2008 filed with the Provincial Prosecutor's Office in Laguna, multiple homicide cases against 6 more respondents: Pepito Magsino, Montano Tolentino, Eugenio Hilario, Jake Javier, Jun Alvarez and Crisanto Alvarez (heist's self-confessed lookout).
On November 20, 2008, RCBC massacre suspect, Jake Javier, single, 23, of Tanauan
, Batangas, was turned over by the Commission on Human Rights (Philippines)
Chairman Leila De Lima
to Camp Crame's Philippine National Police Chief Jesus Verzosa, due to request for protection. The Biñan, Laguna Regional Trial Court Branch 24 issued the arrest warrant
, and Javier announced filing a motion for transfer to the Custodial Center in Camp Crame.
Bangko Sentral ng Pilipinas
The Bangko Sentral ng Pilipinas and commonly abbreviated as BSP is the central bank of the Philippines. It was rechartered on July 3, 1993, pursuant to the provision of the 1987 Philippine Constitution and the New Central Bank Act of 1993...
(BSP) for both commercial and investment banking. It is the Philippines' fifth-largest bank by assets, with total consolidated assets of about P185 billion (or US$3.6 billion) as of end-December 2005.
Early years
RCBC opened for business as a small development bank in 1960, then went through rapid expansion to become the preferred banker to a wide range of markets: the Filipino-Chinese market, the corporate market, locators in the export processing zones, the middle market, and the consumer/ retail market.In 1964, RCBC marked a significant presence in the Filipino-Chinese business community with the opening of its first branch in Binondo. In 1967, this foothold was strengthened when Ambassador Alfonso T. Yuchengco, founder of the Yuchengco Group of Companies (YGC), assumed the Chairmanship of the board. Because of his strong ties with the Filipino-Chinese business community and the Bank's excellent record in serving this market, the Filipino-Chinese market has remained to be one of the Bank's major market niches.
The 1970s
In 1973, Chairman Yuchengco deemed it crucial to invite two international banks to raise the level of banking expertise of RCBC in trade financing, international banking, credit control, and systems and procedure to global standards. These were the Continental Illinois National Bank and Trust Co. of Chicago, USA (CONNILL) and The United Financial of Japan. The tie-up with these banks reinforced the role of RCBC among corporate clients who preferred institutions with international banking expertise. Further, the affiliation with The United Financial of Japan opened another market for RCBC: the Japanese market. Together, the corporate, the Filipino-Chinese and Japanese markets account for a substantial share of the Bank's portfolio.The 1980s
The period marked the rapid branch expansion for the Bank. While most of its peers were establishing branches within Metro Manila, RCBC pursued branch expansion in key growth areas like the export processing zones. This enabled the bank to tap and forge long-term relationships with the foreign locators especially those in the semiconductor industry.Anticipating bigger things to come, RCBC successfully listed its shares in the Philippine Stock Exchange
Philippine Stock Exchange
The Philippine Stock Exchange is the national stock exchange of the Philippines. It is one of the oldest stock exchanges in Southeast Asia, having been in continuous operation since its inception in 1927...
in 1986. The following year, RCBC diversified into the retail market with the introduction of private banking, home mortgage, car financing and the RCBC Credit Card.
The 1990s
The establishment of the RCBC's thrift bank arm - the RCBC Savings Bank in 1996 was an indication of RCBC's strategic thrust of becoming a major player in the retail market. This has been supported by the acquisition of a large thrift bank - the Capitol Development Bank in 1998 and the acquisition of 67% stake in Bankard, a major player in the credit card business in mid-2000.The expanded branch network of 287 branches and 5 extension offices, the opening of foreign offices in Hong Kong (RCBC International Finance, Ltd.) in 1979, in the US (RCBC California International, Ltd.) in 1993 and in Italy (RCBC Telemoney Europe) in 1995 and affiliations with offshore bank
Offshore bank
An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction that provides financial and legal advantages. These advantages typically include:...
s and money transfer agencies, stabilized the position of RCBC in the remittance business. The Bank now accounts for more than 10% of the remittance business.
On top of a highly rewarding banking business, the bank has equity holdings in companies engaged in power generation, automotive assembly, thrift banking, food manufacturing, etc. These companies are deemed leaders in their respective niches and are in industries with long-term growth potentials. RCBC entered into a joint venture agreement with Honda Cars and Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...
Corp. of Japan and the Ayala Group to produce the well-engineered and popular Honda cars for the Philippine market. Together with another Yuchengco Group flagship, the House of Investments, and the Enron
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
Corp., it put up the Subic Power Corp. (SPC), a diesel-fired 116-megawatt power plant built under the Build-Operate-Transfer scheme.
To strengthen its position in the capital market, the bank fully acquired the Philippine Pacific Capital Corp. from its partners and renamed it RCBC Capital Corp. It entered into a joint venture agreement with Isuzu Corp., Mitsubishi Corp. and the Ayala Corp. to form Isuzu Motors Phils. Co., Ltd., which is into the assembly, manufacturing, importation and distribution of AUVs, pick-ups and medium- and big-sized trucks and buses. It has equity participation in Pilipinas Shell Petroleum Corp. In November 1996, RCBC joined Agila Holdings, Itochu and Hacienda Luisita in putting up the Luisita Industrial Park Corp., a 300-hectare industrial park for Japanese investors. Together with Great Pacific Life Assurance Corp., it forged a tie-up (1997) with Japan's largest life insurance company, the Nippon Life Insurance Corp., forming a new joint venture life insurance company - the Nippon Life Insurance Company of the Philippines. Other equity investments of RCBC are in LGU Guarantee Corp, a joint BAP/DBP guarantee institution to cover 85% of local government's unit debts; in Lima Land, Inc., a real estate company involved in the development of a 440 hectare industrial park in Lipa/ Malvar; in KG Investments Holdings, Ltd. with the Koo family and in RCBC Land, Inc., a joint venture between RCBC and Pan Malayan Management and Investments Corporation. The company's maiden project is the RCBC Plaza, the new home of RCBC. The project is a joint venture with the Government (of Singapore) Investment Corporation.
Present
RCBC's long-term objectives are to maintain and further enhance its position as one of the leading universal banks in the Philippines, to be a dynamic financial institution that will be the preferred choice of selected target markets, to achieve an optimal increase in the Bank's capital, and to increase shareholder value. To achieve these, the Bank defined the key strategic areas in which efforts and initiatives will be focused on in the highly challenging borderless banking landscape of the new millennium.First is through leadership in identified markets: economic/ export zones, consumer lending, the middle loan market, treasury services, asset and cash management services for corporate and retail markets and the overseas remittance business. These are growth areas where the bank has core competencies and areas that would complement its core markets, network and affiliations.
Second is through continued synergy with members of YGC and by drawing experience from years of affiliation with the United Financial of Japan. As a member of the YGC group, RCBC forms part of a financial services conglomerate with strong market competitiveness in insurance and other risk management services. Through this alliance, the bank is able to broaden its network and delivery channels inasmuch as the more than 40 companies forming the YGC group present a huge base of existing and potential clients for consumer banking and finance, treasury, trust and investment services. By synchronizing the group's products and services and its marketing and delivery, RCBC will be able to deepen its products and services and provide greater value-added to all its clients. Likewise, RCBC's long years of partnership with one of Japan's and the world's biggest financial conglomerates provided it with the experience and expertise to strengthen competitiveness among Japanese clients and foreign locators in the country's export zones.
Third is through continuing realignment of the Bank's business divisions. By clearly delineating the markets served in each business division, the Bank is able to allocate resources appropriately, strengthen its relationships with key clients and focus business divisions on key areas that will drive revenue growth, enhance distribution capabilities and allow the Bank to offer a broader range of products and services to its target markets.
Fourth, the Bank shall focus on strategies to improve cost efficiency and achieve service excellence. Wherever possible, back office functions and other support processes are moved out of business centers and centralized in processing centers such that business centers become strong competitive sales outlets with seamless support from the back office and information technology systems. To support these initiatives and to provide a platform for the delivery of new products and services, investments in information technology will continue to be a key strategy.
Fifth, the Bank will continue to pursue enterprise-wide risk management initiatives to ensure the Bank's continued strength and viability in the face of multifarious risks that are present in the various core businesses of banking. It will continue to adopt sound corporate governance practices and structure to promote the continued good health of the Bank for the benefit of all stakeholders.
Lehman Brothers' exposure
On September 17, 2008, RCBC Executive Vice President Elbert Zosa revealed its exposure to Lehman BrothersLehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
Holdings Inc. (LEH), and set aside provisions of P 980 million ($ 20.8 million). It stated "the provision will have no adverse effect on its capital base, which stood at P 27.4 billion, or a capital adequacy ratio of 20.97%." RCBC's exposure with Lehman was $ 40 million. BSP data revealed RCBC set aside a buffer
Buffer
Buffer may refer to:*Buffer state, a country lying between two potentially hostile greater powers, thought to prevent conflict between them* Buffer zone, any area that keeps two or more other areas distant from one another, may be demilitarized...
equivalent to 52% percent of its exposure.
Incidents
On Friday, May 16, 2008, at 9:00 am, ten people (including a security guard and a depositor) at a RCBC branch in Laguna were killed during a bank robbery. Nine of the victims died on the scene and one died later at a hospital. The victims were apparently lined up and shot in the head. The shooter(s) may have used a silencer, since no residents in the area had heard any gunshots.Initial reports claimed that two security guards who were supposed to be on their shift were missing, leading authorities to suspect they were involved in the crime as part of an inside job. The bank's vice president, Edwin Ermita, told the Associated Press that the thieves tried to hide the body of a security guard under a tarpaulin in the rear of the bank. Two bank employees' bodies were found in the open vault. The thieves used an employee's vehicle to escape. Up to P 20 million may have been taken in the heist. Five suspects had been identified. Bank employee Isagani Pastor, the lone survivor in the incident that killed 8 RCBC employees and a depositor, died on May 18. Meanwhile, the Commission on Human Rights
Commission on Human Rights (Philippines)
The Commission on Human Rights is an independent office created by the Constitution of the Philippines, with the primary function of investigating all forms of human rights violations involving civil and political rights in the Philippines....
investigated the Task Force RCBC shootout
Shootout
A shootout is a gun battle between armed groups. A shootout often, but not necessarily, pits law enforcement against criminal elements; it could also involve two groups outside of law enforcement, such as rival gangs. A shootout in a military context A shootout is a gun battle between armed groups....
in Pagaspas, Tanauan
Tanauan
Tanauan may refer to either of two places in the Philippines:*Tanauan City, Batangas province*Tanauan, Leyte, Leyte province...
, Batangas which killed 4 men, since police investigators were still determining whether they were connected to the Cabuyao, Laguna robbery, and at least 2 law enforcers had been linked to the bloody robbery-massacre. Further, multiple murder
Murder
Murder is the unlawful killing, with malice aforethought, of another human being, and generally this state of mind distinguishes murder from other forms of unlawful homicide...
, frustrated murder and illegal possession of firearms cases were filed on May 23, with the Calamba Prosecutors Office against SPO1 Florencio Fiesta, employer of and owner of gun used by Bernabe Fiesta.
The Philippine National Police
Philippine National Police
The Philippine National Police is the national police force of the Republic of the Philippines. It is both a national and a local police force in that it does provides all law enforcement services throughout the Philippines...
on May 30, 2008, also filed with the Biñan, Laguna Regional Trial Court, non-bailable charges of robbery
Robbery
Robbery is the crime of taking or attempting to take something of value by force or threat of force or by putting the victim in fear. At common law, robbery is defined as taking the property of another, with the intent to permanently deprive the person of that property, by means of force or fear....
and multiple murder
Murder
Murder is the unlawful killing, with malice aforethought, of another human being, and generally this state of mind distinguishes murder from other forms of unlawful homicide...
against the 6 accused, after the prosecutor Frisco Marfil's inquest: Richard Gomolon, a former Army soldier police; RCBC security guard Joel Dela Cruz; Jesus Narvaez (all currently held by Task Force RCBC); Danilo Letoquit, who arranged the procurement of the getaway vehicle; Allan Bago, and an unidentified male who served as the lookout (all at large). 5 other suspects are being pursued and 2 suspects are also sought for their alleged involvement in other armed robberies in the region. The bank stated that the armed suspects robbed $ 206,890. The Philippine National Police (PNP) on June 11, 2008 filed with the Provincial Prosecutor's Office in Laguna, multiple homicide cases against 6 more respondents: Pepito Magsino, Montano Tolentino, Eugenio Hilario, Jake Javier, Jun Alvarez and Crisanto Alvarez (heist's self-confessed lookout).
On November 20, 2008, RCBC massacre suspect, Jake Javier, single, 23, of Tanauan
Tanauan
Tanauan may refer to either of two places in the Philippines:*Tanauan City, Batangas province*Tanauan, Leyte, Leyte province...
, Batangas, was turned over by the Commission on Human Rights (Philippines)
Commission on Human Rights (Philippines)
The Commission on Human Rights is an independent office created by the Constitution of the Philippines, with the primary function of investigating all forms of human rights violations involving civil and political rights in the Philippines....
Chairman Leila De Lima
Leila De Lima
Leila Magistrado De Lima is the secretary of Philippine Department of Justice under the Administration of President Noynoy Aquino...
to Camp Crame's Philippine National Police Chief Jesus Verzosa, due to request for protection. The Biñan, Laguna Regional Trial Court Branch 24 issued the arrest warrant
Arrest warrant
An arrest warrant is a warrant issued by and on behalf of the state, which authorizes the arrest and detention of an individual.-Canada:Arrest warrants are issued by a judge or justice of the peace under the Criminal Code of Canada....
, and Javier announced filing a motion for transfer to the Custodial Center in Camp Crame.