CASE ANALYSIS: Corona Commercial Bank Inc. (CCBI)
Corona Commercial Bank Inc. is a commercial bank incorporated more than 20 years ago, with a total of 100
branches, 30 of which were strategically located in Metro Manila, 25 in Luzon, 25 in the Visayas, and 20 in
Mindanao. To cope with stiff competition from various universal banks, they decided to decentralize their
commercial loan operation, with the ultimate purpose of increasing their profitability and at the same time,
improving the processing time by granting approving authority to the branches’ regional office aside from the
Credit Committee and Executive Committee at Head Office (HO).
Below are the excerpts of the Board Meeting relative to the significant and crucial changes in the bank’s core
business:
Chairman and President: “Guys, relative to our plan to be more competitive, as I mentioned during our Annual
Stockholder’s meeting, its high time for us to be now competing with the giants in the industry (meaning the
universal banks). With our more than two (2) decades in operation, our people have been trained so well and
had become seasoned bankers. Thus, it is now time to grant our branches approving authority on loans,
especially for Small-Medium Enterprises (SMEs) and the Region Heads, to tap the middle markets further. This
is so that our HO-Commercial Division can focus on large accounts and be competitive in interest rates, and
have a balanced portfolio.”
Vice-chairman: “I seconded this direction from our Chairman. But we need a little more training for our Branch
