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Strong Reputable Brand Name, Financial Strength, and a Strategic fit

Number of branches were increased from 10 to 30
Hold the 20th spot in the banking industry
Total resource base of 35B which comprised 10% of the entire banking industrys total resources.
Banks B bond credit rating
Became a highly tradable publicly held company

Undercapitalized, Illiquid and Unprofitable
Heavily relying on the inter-bank loans granted by RCB to cover its overdraft
Unable to build up earning assets as funds/ deposits generated
Personnel are demoralized due to favoritism, uncertainties in their employment status
and lower pay incentives compared to other banks
Recurring overdrafts in its demand deposit with the BSP.
Abuse of authority of officers who took advantage of their respective positions by
granting fictitious loans for their personal use.
GOCBs assets, deposit liabilities, trust assets and loans have significantly declined.
Questionable investments, usually high salaries of its officers and payment of unusually
high interest on term deposits.
Difficulty servicing withdrawal because most of its funds were engaged to NPLs.
Decrease in its investment funds and deposit liabilities resulting into liquidity constraints.


The commercial banking industry remains resilient amid the credit crisis in the international
financial markets and record high inflation rate of 13% as well as rising interest rates.
The domestic liquidity is adequate with steady inflows of more than 1 billion dollars a month
from OFWs and foreign parent firms outsourcing and call center companies


High inflation, increasing interest rates and lower bond prices remarkably reduced the trading and
investment for most banks.
Negative news about GRC relative to its capital crippled by huge losses linked to mortgage
defaults and failure to meet the outstanding payables triggered the massive withdrawals of funds
with GOCB.
Local exposures of conglomerate owned banks to sister companies
The newly passed Socialized and Low Cost Housing Loan Restructuring Law will cover all
socialized and low cost housing loans from government financing institutions and agencies.