By DEE K- CHIONG

.Presidenj , Chinn nanking Corporation

On August 16,1920, t he China Banl<ing Corporation fo rmally opened its doors to th
amid t he presence of foreign banks and American ru le.
epublic,
Today , after sixty years and many t rying ti mes, China Bank has become a reputabl
leading commercial hank in t he country which extends wide finan~ia l aid to almost ever Ystable
commercial, agricult ural and industrial endeavor; sets the pace m improved banking Y1'~e Of
serves o broad sector of society through its 22 branches nationwide; and participates s:erv'tes;
10
munity welfore projects, civic acti vities and fund campaigns.
COrn.
Its aut horized capitol stock has grown 50 times over t o P?~O mi.llio.n f~om its initial ca .
stock of P10 mill ion in 1920. Tota l resources reached P3.3 b1lhon, md 1catmg a growth f ~'tal
per cent from t he 1978 figu re of P2.8 bi llion , while its gross income of P381 .7 million~ 5.6
an increase of 21.9 per cent over 1978's P313.1 million.
owed
Dee K -.Chiang, President and Ge n~ral Manager •. ~ain~ins t hat Ch.ina ~ank 's outstandi
goal .of serv~ce ~o the peo!lle has made 1t surmount d1ff1cult1es a ~d cont•.nue 1ts vital role of ung
holdmg the soc1o-econom1c development of the country. Accordmg t o tum , as China Bank P·
itself towards the concerns of the new decade, it will " co ntinue to harness its resources to !lears
the challenges faced by the banking industry," and int ensify its efforts t oward the attainme~eet
its goals for the eighties: higher growth rates, manageable balance of payments, renewed em ~~
sis on agro-based industries, and export-oriented business .
P ·

CHINA BANKING CORPORATION

60 Years of Fruitfu I Serv1ce
hina Banking Corporation , now on its sixtieth
Cyear,
takes pardonable pride not only in its con-

Manager; Marwin Webster, Secretary-Cashier ; and
Jose Damian , Accountant.
tinued growth but also in the spirit of service to
In 1924, the Bank moved to its building consPhilippine society that it has sustained throughout tructed at the corner of Juan Luna and Dasmariiias
the years. For CBC, the past six decades indeed Streets to keep pace with growing clientele. The
witnessed a fruitful and meaningful existence.
building houses the Head Office to this day.
The records show how, from a struggling bank
On August 15, 1925, it opened a branch in
faced with the perils of a world war, China Bank was Amoy, China and on May 1, 1929, another one in
able to attain its goal of servicing the financial and
Shanghai.
credit requirements of a growing Philippines. It like·
During the war years, China Bank was forced to
wise withstood trying times to implement its policy close its doors because it was considered as an enemy
of helping business and industry grow in the country
institution. Dr. Albino Z. SyCip, one of its founders,
and "to successfully make it to the 80's.
now deceased, and the late George Dee Sekiat, who
would later become its President, were both impri·
A GLIMPSE OF IDSTORY
soned by the Japanese military authorities who con. The. years followi~g World War I saw the Philip·
fiscated all the assets and properties of the Bank.
pmes still under American rule. The economic situa·
Then came the battle for liberation of Manila
tion, however, was starting to pick up and attract
during the early part of 1945 which left China Bank
enterprising spirits. With the exception of the Bank of
devastated. Under the management of Dr. SyCip who
the Philippine Islands and the government-owned
assumed the position after Dee C. Chuan 's death in
Philippine National Bank, all the local banks were
1940, the bank was painstakingly rehabilitated. The
branches of foreign banks. As more foreign and restoration of the damaged building, equipment and
domestic trades burgeoned, a need for more domestic
records was not at all a miniscule task. It took the
banks became apparent.
utmost courage of a handful of loyal ·a nd dedicated
Responding to the call of the times, the late Dee
employees of the bank who helped with the work.
C. Cbuan, lumber T?agnate and philanthropist, and
It was to Dr. SyCip's great relief when he learned
Dr. Albino Z. SyC1p, then a legal practitioner in
of the one factor which would help expedite CBC's
Manila, met with a group of leading businessmen in
resumption of operations: the prescience of the U.S.
lilecember, il9i1.9 at the Oriental Club in Ermita to
Treasury officials who, weeks before the Japanese
discuss the groundwork of the organization. Among
occupation in 1941, gathered the cash of the bank
those present was Oei Tjoe, a wealthy businessman
trom Java who subscribed to, and paid in P1 million of · and credited it to its account against the reserves of
th.e Philippine Government in New York.
the capital stock of the bank. Some Filipino Chinese
More than ever, a firm determination to start all
Spanish, American and British nationals als~ becam~
over again triggered a gathering of forces to blot out
stockholders. Their indomitable sp.irit eventually
whatever scars the war had left behind. Having only
found fulfillment In the incorporntion of the bank on
P19,962,270.00 in total resources, the Bank struggled
~July 20, 1920 with an authorized capital stock o£P10
for recovery.
million.
Along with its own goal came the task of setting
lllhe bank formally opened for business on
the damaged Philippines back on her own fe et . The
August 16, i1.920 at No. 90 Rosario Street Manila
foremost problem which confronted the country was
with a complete line of banki11g facilities and' services
its dwindling agriculture, trnde, ~'Ommerce und In·
to the public. The firsti boar-d of directors was comdustr.y as well as the dourth of food,, clothing, shelter
posed of Dee C. Chuan, Chah.man; A:Iblno Z. SyCip,
and materials. To bring in tho necessary goods and to
Vlce-Chail'man ; Ben1to Sly Cong Bleng, G. A. Cu
generate funds , China Bank extended wide fi nancial
tJnjleng, Carlos Palanca, Dy Buncio, Uy Yetco , Go
aid to importers of the basic necessities of the Fili·
J~o , Vlcentl' Gotarnco , Antonio l!.imgenco and Yu
pino people.
Blao Son'tua, members.
From 1946 to the ilrst half of 1950, CBC allotted
The o ~f,Jcers were J!)ee C. Chuan, ~esldenti; Ail'
~66 million for post-war rehabilitation. Then it went
blno
SyOlp, ViceJPresldent; II. W. McFerran, Acting
on to financing large-scale projects and new industries

z.

190

FOOKI EN II'JMES PHILIPPINES YEARB(!)OK 1980

such as those of textiles, foo d, paints, paper, electrical parts and fixtures, cement, plastics, plywood
and steel, and agricultural ventures which would supply the Philippines all the important requiremen~.
These projects eventually contributed to the country 's Gross National Product.
Occurring within the same period were changes in
China Bank's set-up. In 1948, it opened its fm;t loClll
brnnch in Cebu City. Th e following year, its branches
in Amoy and Shanghai were both closed down when
condi tions in China rendered it impractical to con·
tinue their operations.
VEillCLE FOR SOCIO..ECONOMIC
DEVELOPMENT
China Bank's dream of serving a broader sector of
business and industry was little by little tulfiUed
through the gradual establishment of its branches.
The Sto. Cristo branch in Manila opened on October
4, 1960. Makati Branch came into being on May ~·
1970, followed by the Caloocan Branch on May 1 •
1973. Another branch started operating in Davao
City on May 31, 1976.
"ded
In its vast financing program, the Bank 11 d
almost every line of commercial, agricul~ml
industrial endeavor, from sm all ventures Ill w to
working, poultry, piggery and cottage industries. of
the production of grains and the manufacture
various products. It also assisted exporters of su~:
copra, tobacco , hemp , logs and other indigenous P
ducts.
. to the
Of equal sign ificance ~re CBC's servu:es il1lted
government and the people in general. It coopern ent
with the Home Financing Commission, ~. ~v~~ build
agency created to help low-income FdiP 111 t;ry's
their own houses. It also geared itself in the co:.~ it
drive towards industrialization ~d ~or w ~vide
pioneered in interbank. syndi~te fm~ncmg ~orked
funds for large.;;cale mdustnal proJects. ti 0 0 of its
with the Central Bank in the impJementa
in une
vurious control and monetary policies, always
with the government 's development program"ro wide!
China Bank would later on prov~ ho:W :rnmUllitY
its commitments were by participating md cBJilPaigJJS.
welftu:e projects, civic activitie~, and fun ovation of
and subsidizing the construction and ren
school buildings.
the Ll~
In 1954., it took part in the project ofrnrnont pro·
Wells Association which helped tbe gove

:d.

ft

Compuf 0 veruence they may now do so in any of the Bank's draWIDg~a offices. Organized last June.inue· deve •ts 1 pment of the country.ob the tate Albino Z.. an allotment of P4 . and Anthony Dee K-Chiong. the ~ by Chinese. But with the continued dedication of both its officers and employees. and direct lending services. Peter S. lending. CHINA BANK TODAY Despite staggering price increases. raising. -~otgueras.at 1980 FOOKIEN TIMI'S f>UlLIPPINI'S YliARBOOK 191 . ll01lo. British. Caloocan. universa! banking or unibanking has become the ultimate direction. promissory notes. ' China Bank's . 1980. 7 million showed an mcrease of 21. _ Situated on ~ 1? .ities. Sy Cip. current accou t o this China Bank was also the first eorotlarySo theast Asia t o do " multiprogramco!DpanY m ~ter system . It regularly conducts training and development courses for its staff to equip them with the necessary knowledge in the face of competition and complexities in banking. depOSits. the bank's headquarters will move to Ayala Avenue in Makat. sto. s d tak office and the branches are un er en. __ Total resources amounted to P3. Valenzuela..ts dou CBC stand amidst difficulties and pie b~ mavi:al role of upholding the socio~t. James Chua image. Makati. providing factoring. proof ?f which is in its annual financial reports. the presence of n08ti0 g rate and worldwide inflation.70 per share with return on equity at 18. The pro j ct 1116 rural . abetted by a broad dep<isit base amountmg to PL45 lillian. Cristo. discounting. Gilbert Dee. ""•cation of account balances and in!DatJC veru' /!. then e0 1~ pearheade . CBC is confident to reach greater heights as it stands in the threshold of the '80s. Dee. two to lhree more bW!ches will htve oeen opened.4 million.U to terest up dat'Jn g on sangs accounts are also made wJIS of the ()1r<l the passible. securities and property.9 million as of December 1979. San Fernando. and negotiations of loans among a host of other services. Lao.3 billion. Five of CBC's directors sit in its board: Robert Dee Se Wee.urvive and to remain one of the oldest :f!mng commercial banks in the c01~1!-try. leasing. It is envisioned that five years from now. CBC has d to . cO" o ee0nonllc UPGRADING CBC's SE~VICES f th leading commermal banks. Trading account securities were recorded at P39~. Masangkay. (Above are the members of the present Board of Directors. China Bank today is faced with bigger challenges Edward Dee Se Kiao Florentino del Rosario posed by the current changes in the banking arena. Spanish and other llltiOnaJ.5 Anthony Dee K. buying. -~ roved banki ng services. selling.5 per cent. In the banking and financial community .1 million. :ng of transactions. Pampanga. CBC bas organized the two allied undertakings above-mentioned.. warehousing and trucking. the CBC Finance Inc. discounting. It has upheld a reputation for stability. &oa Bank bas taken longer ltr1des Which banish its C:@llservative =~~~:to The late Dee C. ss machines. showing a growth of 15. Ana (Davao City)."'itial capital stoc~ of P10 ~ in 1920. It is of importance to note that the ~ized capital stoc. Chiong. 1ts gross income of P381. Davao. American. Gilbert Dee PeterS. ~atest bUS106.6 per cent from the _ 1~78 figure of P2. of :d instant updating on savings accounts. computer. Quezon Avenue.latest venture in international finance is the Manila CBC Finance (Hong Kong) Ltd.7 per cent over the previous year's P434 million . Chuan The late Albino Sycip Tite late George Dee Scld. THRUSTS FOR TIIE '80s CBC is geari~g itself towards the concerns of the new era. the new _ _:__ _ _ _ _ _ _ _. it functions as a merchant bank to carry on all or any of the businesses of borrowing. sta. _ tile In its long-standing "' I of servicing the people m beat way . ~~o. PAST PRESIDENTS OF CHINA BANKING CORPORATION---------. CBC was 0 As one . both in Cebu CJity.. t rization has blotted out the incone CBC's clientele in depositing or with. and the fust company in JDing" on comp to operate o n line with a thirdPhilippwes tbe . Before the year ends. Jr. 8 billion. Jr. . generat!o~ rsion from the conventional methods of 'ibiS ~:atures speedy processing of about 150 operations nsactions involving demand and savings types . which was incorporated on March 21 1980. advancing.000-squ~e m~ter lot. Cagayan de Oro ill\d Dagupan City. The Bank~paid-in c~p~tal mcreased P20'T mi11ion last Year P248 million. managing. Total investments increased by P50. the Chma Bank Tower w1ll me 32 stones htgh . ~uapo. F: !On. CBC has an equitY participation of 53' per cent in the company and has five of its directors and officers concurr~ntly involved in the company. · The increase in the number of branches has helped bolster the bank's resources.. general sunuttaneotatistics and periodic records for the head ledger.9 percent over 1978's P313 . 7 million._k has groWJJ 50 times over to ·~ lllllli9n !rom its i. Its' immediate goal is to serve as a medium fo. Last year. 1 CBc is presently 78 per cent Filipino-awned. as compared w1th 1'96. Dee K-Chiong. Pasay . Legaspi Village. Cash dividends distributed to stockholders summed up to 1'9. The ent Project in 1969 likewise roCIIJll 006 Resettlemort of China Bank in helping the full supP coi~:indige~t res•~:~~ding goal of service to the arf)ll 'l'tUlY . Loans grew to ~L 94 billion. The sai d compu ter (8cilitate h~BC the prestige of being the very first earned f~ theast Asia to process both savings and IJallk l)l u nts " on line". Edward Dee Se Kiao and _ Reynatdo L. Cognizant of the added solidity it can provide the Bank. Greenhills. It had set a pace: . It now serviCes 1ts glOwing clientele in the following branches: Cebu. 1't procured and installed the I BM SysJn 19 8 ' ntplex com puter system designed to telllf360. La~t year. underwriting. the branches alone !:!!Derated total deposits amounting to :-ethan a third of the bank's total deposits of P1. :r J~~ifory and equipped itself with th e up a . Dee. or 11. Through multi-programming.. In its desire to reach a wider expanse. Manali~ and llaJnos. They are : Dee K-Ch1ong.) It recently organized an allied undertaking.:m8Jl ~oard and General Manager. Metro us "off-line" jobs like the payroll.td•·tructiOD of .areas with potable water through the urces of water supply. At present China Bank has a total of 22 branches to keep up with its program of expanding se~ices _to a broader section of society.1 million in 1978. the bank is also studying the feasibility of engaging in other spheres of business such as brokerage.

More and more e_mphasis will :be placed 011 profesSlonallsm and skills. it wO!Ud ~ 3 to 6 yelllS before 26-28. To generate high quality clients and feebased income. renewed emphasis on agro-based industries and exportoriented business. Relevant to the consideration of A second important consideration is equity investments are such aspects as an environment with manageable infla.."'-'» What is the algnifit:ance of unJ. Licaros himself lauded the performance of China Banking Corporation : that it has adhered to its policy of helping finance both small and big enterprises and of actively participating in the government's development programs in all its sixty year.) measures and programs should be deFinally. In any environment characterized term transformation will forever be an by inflationary pressures. the successfUl advance ~d signed to induce a in the savingS rnte by providing reasonable real returns for expansion of financial markets will savers. time. Systems characterized by strong condition. of service. 7 per cent for France.views grievously · err in judgment.. faster rhythm of work.future. concentration and efficiency? Coun'l'ho nggressive and concerted effort tries characterized by unlbonking Rtruc· of Investment houses in putting together turcs have tendocl lo exhibit a fnlrly projocL financing packages would lead high degrae of lnvolvomont of unl· to a signifi cant Imprint In the financial banking institutions In business nffnlrs. dividend record. These profound changes imply a mdical reformulation of the managerial and other human resource requirements of fmancial institutions. No less than Central Bank Governor Gregorio S. will continue to carve a relatively high in unibanking countries.. and a sense of competitive spirit.. Traditiona! forms of delivering services to clients will have to he restructured. 192 FOOKIEN 11MES PHJUPI'INilS YEARBOOK J980 rue .f!ectlve delivery systems. otwithstanding the present secnario of worldwide recession .supply of long-term capital and un· sider interest. and instruments... niche in the system.would depend on a number of premises.are relatively free to seek their own writings does not materially change. the enhanced dist\Lrbnnces on ex lornal oqulllbrium. anticipated retirement of traditiona! giants". on the degree of business cer· Impact than programs designed simply tainty and positive posture about the to increase public awareness and deve.. quately diffused and the cost of capital is realistic and reasonable. 1979). Interest rate flexibility of longreasonable to expect that the under. financial institutions have to break out of their enclaves and reach out for new markets. 2. sonable level of inflation if interest rates If the environment for under. positive thinking. t he unpredictable moves in the int matiOJ1al political front . 1 David Gill . The more _aggressive EKBs may be able to generate investible equity funds but The development of a capital mar· these would tend to flow to friendly or ket can he consistent with some rea· tested ventures. one can expect spread ratio at 3.2 per cent for Netherlands. .sYStem that is characterized by quantum stnntial increase in equity or venture changes in the level of short-term in· capital? It is doubtful whether this terest rates will tend to exhibit a relaevent would come about as there is a tively undeveloped capital market and a natural selectivity in equity investments. A financial into equity investments lead to a sub. The authorities are hopeful that proper safeguards have been lmposecl on EKBs and other lnstl· tutlollB to diffuse economic power.. terms of absolute values but by the impact of its existence as an entity committed to service and to the progress of a develo ping economy. it is levels. community. Whnt hilS been tho experience of momentum and deepen market penetraother countries In relation to power tion. (Ulre must be exercised that a greater interplay of competitive forces MIBOR-type pricing mechanism does will lead to higher rntes of return for not represent an equivalent yield investors and savers.. Even the organiza. the authorities and responsible members Whether or not the objectives of the fmancial community to ensure behind universal banking are achieved that economic opportunities are ade. capacities of Investment ho uses and thnt complicate the goul of loweri ng the thrift banks would enable them to gain ~'Ost of capital. 1 It would be a challenging task for decade will bear this out. parti· cularly the adoption of the universal banking system in the country 's finaucia! system . forces.. Whether or not unlbanldng will l'(lsult In lower cost of capital Is ciitflculL EKBs can make their presence felt in to predict at this stage. 3. • savers will he the targets for more e. • BARRIOS (From Page 186) Emphasis will be placed in the future on a service orientation. To be effective. Banks and Securit ies Marke~s: TRAJECTORY Will there he an Immediate major Some Thoughts . As a potent vehicle for socioeconomic development. financial institutions can no longer rely on a steady flow of borrowers. We have seen a revolution of nnan· lop savings habits. tiona! structures of financial institutions need to be redefmed to cope with c~anging markets and pressures. banking to the IISelll of funds? The greatest concern of the busines sector 1a the fear of inordinate concentration of economic power. The end' users of funds and pmctlces. specific policy elusive goal. limit the extent of business involvement of unibanking institutions.countries counting any significant transformation characterized by the separation of com. reflective of The first important consideration is democratic processes and opportunities. Investment The concern over power concontro Llon houses will have to make strategic has been most pronounced In West moves to reckon wlth t he integrate d Germany which has initiated moves to powers of EKBs. Fee-based activities will grow in relative importance over the yean. They are disfor the United States . ponding ratio is estimated at 2. China Bank faces the thru ts of the SO's with an optimistic perspective of expansion and growth and a renewed commitment to serve the financial needs of our society.n. IMPUCATIONS FOR Bum.. Pr ofessi o nall y-run t hrift InstiAvailable literature suggests that t utions..term financial instruments can be recon· writing activities of EKBs will be modest ciled with changes in short-term interest and selective.8 per cent for Canada and 3. Tbe resulting realignment of forces will be a function of perceived optimal Institutional structuzes and best fit for the Jlelllonalltl e& concerned. Februarv EIO!e.. the bank shall intensify its efforts toward the attainment of the goals for the new decadehigher growth rate targets. and the inflationary elements exhibit a modest extent of equity involvement of out. h a nd f ul of independent financial and 3. ln the long-run . China Bank will continue to harness its reso urces to meet the challenges faced by the banking industry. 2. for China Bank.ce n ter o f im p ved and renewed services. The cones. Otherwise. acceptable financial performance and tion. a situation that refleets a gap between the demand for and aYllilability of funds in the system. such as worldwide Jn fiailon and In the meantime. corporate existence is not merely reckoned with in . some measured degree of interest rate Would the ability of EKBs to go stability in the sYStem. manageable balance of payments. Indeed.4 per Some people do not take the uni· cent for Korea.. We can that the freer market Interplay in the expect to witness a decade-long system will lead to Improved banking evolution of financial structures and services. There Is likewise the expectation cia! ideologies and strategies.groups. with aggressive deposit genecommercial banking spreads· have been rating programs. on Evaluating Financ1al tmniformatlon in the financial system? System Depth and Efficiency" (a paper before the First International ConGiven the hurdle level of P50@ mil· delivered ference on the Financial Development o f llbn P*td·IIJ! ca.pltal requirement for Latin America and the Caribbt!an. accompanied by substantially lower than the yield on broader investment possibilities over prime commercial papers. People who share these mercia! banking activities from invest. limited supply of long-term capital. The International Finance Corporation (IFC) estimates the commercial bank By the mid-1980s... rntes if long-tenn yields are expressed as a margin above a benchmark such as the IMPUCATIONS FOR INVESTORS yield on short-term prime commercial There is some expectation that the papers. and the dim forecast for the years ahead. Is it realistic to assume a radical change in attitudes among those consti· tuting the top leadership in the fmancial system? Managing change will he partly facilitated in tbe future given the relatlve age structure of chief executives ~d Uu. The scenario for the second half of the ment banking powers.2 per cent banking reforms seriously. Irrespective of the countries real returns for investors have far greater concerned.in the system. There nro other tho finan cial syste m. Measures that are addressed to depend.2 per cent for Japan.4 per cent for West the emergence of dominant EKBs and a Germany.. The prototype banker is developed capital market institutions concerned with solvency and liquidity.