One Network Bank
Encyclopedia
One Network Bank, also known as ONB, is a rural bank based in Davao City
in the Philippines
. Formed in 2004 through the consolidation of Network Rural Bank of Davao del Sur, the Rural Bank of Panabo of Davao del Norte and the Provident Rural Bank of Cotabato, ONB is the largest rural bank in the Philippines in terms of assets, with a network of 75 branches and 96 ATMs
(as of May 2010) throughout the provinces of Mindanao, including seventeen localities where it is the sole provider of financial services.
It is the first rural bank in the Philippines to receive the nod of the Philippine Clearing House Corporation (PCHC) to establish a checking
account, as well as to have its cheques cleared directly by the PCHC, instead of an intermediary bank. It is also an equity member of MegaLink
, one of the first banks in Mindanao to join an interbank network
.
of three rural banks in the country. The union embodied over 30 years of experience and expertise in rural banking that was further established by the notable performance of the individual banks in terms of growth, solvency and profitability.
Before the historic consolidation which formed the biggest rural bank in the country with the widest private banking network in Mindanao
, there were three partner rural banks — Rural Bank of Panabo, Inc., Network Rural Bank, Inc. and Provident Rural Bank of Cotabato, Inc.
RB Panabo has been servicing Davao Province
since 1967. While it was the component bank with the fewest branches, it provided technical and logistical support to its partner banks. Many of the banking systems and procedures used by its partner banks came from RB Panabo.
RB Panabo received its authority to operate from the Bangko Sentral ng Pilipinas
on February 11, 1967. Founded by Dr. Luis A. Buenaventura, Jr., the Bank started as a small company with a simple premise; to bring quality financial services to the community, delivered with warm human touch. It was in 1980 that RB Panabo saw the start of its rise to prominence in the rural banking industry with the induction of Alex V. Buenaventura as President of the bank. RB Panabo was a recipient of many prestigious awards from various finance industry groups and was consistently listed among PDIC
’s Top Ten in terms of net income.
Originally the Rural Bank of Davao City and operating four branches across Davao City, it was merged in 1993 with 5 other rural banks — Community Rural Bank of San Isidro
(Davao Oriental
), Rural Bank of Governor Generoso
(Davao Oriental), Rural Bank of Pantukan
(Compostela Valley
), Rural Bank of Bayugan
(Agusan del Sur
) and Rural Bank of Kalamansig (Sultan Kudarat) – and renamed as Network Rural Bank.
RB Panabo’s success was such that also in 1993, Network Rural Bank, Inc. asked Alex V. Buenaventura of RB Panabo to take over its helm. Mr. Buenaventura’s acceptance brought his leadership and rural banking experience into Network Bank. This move was the start of a long-standing partnership between the two rural banks.
In its 11 years of existence, Network Bank became a giant in the Philippine rural banking industry. From 9 branches in 1993, NB expanded to 33 branches in Mindanao.
The cooperation between Network Bank and RB Panabo did much to enhance both financial institutions and maximize client’s benefits. Shared policy formulation brought out the best of both banks and created a “two banks, one system” framework.
The ties between the two banks even went so far as to spur the creation of another strong financial institution, what may be called the offspring of the RB Panabo and Network Bank.
In 1996, Network Bank and a group of Cotabato
investors, led by the Diocese of Kidapawan, acquired a rural bank in Central Mindanao called the Community Rural Bank of Matalam
. Re-launched under a new name, Provident Rural Bank of Cotabato (Probank), a known Cotabato banker, Elpidio F. Masbad III, took over the reins as president of Probank.
From total assets of P5 million with P3 million owed to BSP
, ProBank grew to a
P 235 million bank with 7 branches in its 7-year run. The rapid turnaround can be attributed to aggressive marketing campaigns as well as logistic and systems support from Network Bank.
With a strong third partner in place, the basis for cooperation was set and the “three banks, one system” approach was formed.
Working in parallel with similar systems was however not enough for the three rural banks. In 1996, RB Panabo and Network Bank entered a “mutual purchase” or stock swap arrangement. With Network Bank owning 49% of ProBank, the stockswap arrangement brought the three banks closer. This paved the way for the conception of The Network Rural Banking Group (NRBG).
The Network Rural Banking Group was created in 1998 when Network Bank, RB Panabo and ProBank resolved to operate as a single unit with joint policy formulation made possible through a common Executive Committee and synchronized systems and procedures. Sharing common central office services such as human resource development, legal services, treasury, product development, information technology, internal audit and appraisal, in effect, contributed to the rapid growth of the partner banks.
June 18, 2003 - Bangko Sentral ng Pilipinas (BSP) accepts the application for consolidation of three partner rural banks — Rural Bank of Panabo, Inc., Network Rural Bank, Inc. and Provident Rural Bank of Cotabato, Inc.
July 18, 2003 - Philippine Deposit Insurance Corporation (PDIC) approves the consolidation of the three rural banks.
December 22, 2003 - The Monetary Board, through resolution no. 1865 approved the consolidation and formation of the biggest rural bank in the country, One Network Bank.
January 2, 2004 - One Network Bank receives the notice of approval with incentives from the Bangko Sentral ng Pilipinas from BSP Governor Rafael Buenaventura
.
March 14, 2004 - Thanksgiving Celebration and Launching held at The Venue in Davao City to officially launch the union of Rural Bank of Panabo, Inc., Network Rural Bank, Inc. and Provident Rural Bank of Cotabato, Inc. and celebrate the birth of One Network Bank.
April 1, 2004 - The three banks started its consolidated operations and with its combined resources formed the largest rural bank in the country.
Davao City
The City of Davao is the largest city in the island of Mindanao in the Philippines. Its international airport and seaports are among the busiest cargo hubs in the Philippines....
in the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
. Formed in 2004 through the consolidation of Network Rural Bank of Davao del Sur, the Rural Bank of Panabo of Davao del Norte and the Provident Rural Bank of Cotabato, ONB is the largest rural bank in the Philippines in terms of assets, with a network of 75 branches and 96 ATMs
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
(as of May 2010) throughout the provinces of Mindanao, including seventeen localities where it is the sole provider of financial services.
It is the first rural bank in the Philippines to receive the nod of the Philippine Clearing House Corporation (PCHC) to establish a checking
Cheque
A cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...
account, as well as to have its cheques cleared directly by the PCHC, instead of an intermediary bank. It is also an equity member of MegaLink
MegaLink
MegaLink is an interbank network connecting the ATM networks of nineteen* members in the Philippines with a total of more than 2,921* ATMs nationwide and handling more than 795,000* transactions a day...
, one of the first banks in Mindanao to join an interbank network
Interbank network
An interbank network, also known as an ATM consortium or ATM network, is a computer network that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of non-native banks....
.
Corporate history
One Network Rural Bank is a consolidationConsolidation (business)
Consolidation or amalgamation is the act of merging many things into one. In business, it often refers to the mergers and acquisitions of many smaller companies into much larger ones. In the context of financial accounting, consolidation refers to the aggregation of financial statements of a group...
of three rural banks in the country. The union embodied over 30 years of experience and expertise in rural banking that was further established by the notable performance of the individual banks in terms of growth, solvency and profitability.
Before the historic consolidation which formed the biggest rural bank in the country with the widest private banking network in Mindanao
Mindanao
Mindanao is the second largest and easternmost island in the Philippines. It is also the name of one of the three island groups in the country, which consists of the island of Mindanao and smaller surrounding islands. The other two are Luzon and the Visayas. The island of Mindanao is called The...
, there were three partner rural banks — Rural Bank of Panabo, Inc., Network Rural Bank, Inc. and Provident Rural Bank of Cotabato, Inc.
- Rural Bank of Panabo, Inc. (RB Panabo)
RB Panabo has been servicing Davao Province
Davao del Norte
Davao del Norte , and once known simply as Davao, is a province of the Philippines located in the Davao Region in Mindanao. Its capital is Tagum City. It borders the province of Agusan del Sur to the north, Bukidnon to the west, Compostela Valley to the east, and the city of Davao to the south...
since 1967. While it was the component bank with the fewest branches, it provided technical and logistical support to its partner banks. Many of the banking systems and procedures used by its partner banks came from RB Panabo.
RB Panabo received its authority to operate from the Bangko Sentral ng Pilipinas
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...
on February 11, 1967. Founded by Dr. Luis A. Buenaventura, Jr., the Bank started as a small company with a simple premise; to bring quality financial services to the community, delivered with warm human touch. It was in 1980 that RB Panabo saw the start of its rise to prominence in the rural banking industry with the induction of Alex V. Buenaventura as President of the bank. RB Panabo was a recipient of many prestigious awards from various finance industry groups and was consistently listed among PDIC
Philippine Deposit Insurance Corporation
The Philippine Deposit Insurance Corporation is a government-run Philippine deposit insurance fund. It was established on June 22, 1963 by Republic Act 3591. It guarantees deposits up to P500,000.-External links:*...
’s Top Ten in terms of net income.
- Network Rural Bank, Inc. (NB)
Originally the Rural Bank of Davao City and operating four branches across Davao City, it was merged in 1993 with 5 other rural banks — Community Rural Bank of San Isidro
San Isidro, Davao Oriental
San Isidro is a 4th class municipality in the province of Davao Oriental, Philippines. It has a land area of 205 km². According to the 2000 census, it has a population of 31,705 people in 6,117 households....
(Davao Oriental
Davao Oriental
Davao Oriental is a province of the Philippines located in the Davao Region in Mindanao. Its capital is Mati and borders Compostela Valley to the west, and Agusan del Sur and Surigao del Sur to the north. Davao Oriental is the easternmost province of the country with Pusan Point as the easternmost...
), Rural Bank of Governor Generoso
Governor Generoso, Davao Oriental
Governor Generoso is a 2nd class municipality in the province of Davao Oriental, Philippines. According to the 2007 census, it has a population of 46,745 people in 8,297 households.-Barangays:Generoso is politically subdivided into 20 barangays.* Anitap...
(Davao Oriental), Rural Bank of Pantukan
Pantukan, Compostela Valley
Pantukan is a 1st class municipality in the province of Compostela Valley, Philippines. According to the 2000 census, it has a population of 61,801 people in 13,311 households.-Barangays:Pantukan is politically subdivided into 15 barangays.* Bongabong...
(Compostela Valley
Compostela Valley
Compostela Valley is a province of the Philippines located in the Davao Region in Mindanao. The province, called Comval for short, used to be part of Davao del Norte until it was made independent in 1998. It is the third newest province of the Philippines, behind Dinagat Islands and Zamboanga...
), Rural Bank of Bayugan
Bayugan, Agusan del Sur
Bayugan is a city in the province of Agusan del Sur, Philippines. According to the 2010 census, it has a population of people in 21,468 households. The City is classified as a third class city according to The Local Government Code of 1991...
(Agusan del Sur
Agusan del Sur
Agusan del Sur is a landlocked province of the Philippines located in the Caraga region in Mindanao. Its capital is Prosperidad and borders, from the north clockwise, Agusan del Norte, Surigao del Sur, Davao Oriental, Compostela Valley, Davao del Norte, Bukidnon, and Misamis...
) and Rural Bank of Kalamansig (Sultan Kudarat) – and renamed as Network Rural Bank.
RB Panabo’s success was such that also in 1993, Network Rural Bank, Inc. asked Alex V. Buenaventura of RB Panabo to take over its helm. Mr. Buenaventura’s acceptance brought his leadership and rural banking experience into Network Bank. This move was the start of a long-standing partnership between the two rural banks.
In its 11 years of existence, Network Bank became a giant in the Philippine rural banking industry. From 9 branches in 1993, NB expanded to 33 branches in Mindanao.
The cooperation between Network Bank and RB Panabo did much to enhance both financial institutions and maximize client’s benefits. Shared policy formulation brought out the best of both banks and created a “two banks, one system” framework.
The ties between the two banks even went so far as to spur the creation of another strong financial institution, what may be called the offspring of the RB Panabo and Network Bank.
- Provident Rural Bank of Cotabato (ProBank)
In 1996, Network Bank and a group of Cotabato
Cotabato
Cotabato , is a landlocked province of the Philippines located in the SOCCSKSARGEN region in Mindanao...
investors, led by the Diocese of Kidapawan, acquired a rural bank in Central Mindanao called the Community Rural Bank of Matalam
Matalam, Cotabato
Matalam is a 1st class municipality in the province of Cotabato, Philippines. According to LGMPS , it has a population of 69,364 people in 14,953 households.-Geography:...
. Re-launched under a new name, Provident Rural Bank of Cotabato (Probank), a known Cotabato banker, Elpidio F. Masbad III, took over the reins as president of Probank.
From total assets of P5 million with P3 million owed to BSP
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...
, ProBank grew to a
P 235 million bank with 7 branches in its 7-year run. The rapid turnaround can be attributed to aggressive marketing campaigns as well as logistic and systems support from Network Bank.
With a strong third partner in place, the basis for cooperation was set and the “three banks, one system” approach was formed.
- The Network Rural Banking Group (NRBG)
Working in parallel with similar systems was however not enough for the three rural banks. In 1996, RB Panabo and Network Bank entered a “mutual purchase” or stock swap arrangement. With Network Bank owning 49% of ProBank, the stockswap arrangement brought the three banks closer. This paved the way for the conception of The Network Rural Banking Group (NRBG).
The Network Rural Banking Group was created in 1998 when Network Bank, RB Panabo and ProBank resolved to operate as a single unit with joint policy formulation made possible through a common Executive Committee and synchronized systems and procedures. Sharing common central office services such as human resource development, legal services, treasury, product development, information technology, internal audit and appraisal, in effect, contributed to the rapid growth of the partner banks.
The Consolidation
After 8 years of working closely together, the partner banks decided to consolidate, allowing the Bank to take advantage of economies of scale, avail of incentives from the Bangko Sentral ng Pilipinas and bring better banking services to countryside Mindanao, given a bigger capital base and increased Single Borrowers Limit (SBL).June 18, 2003 - Bangko Sentral ng Pilipinas (BSP) accepts the application for consolidation of three partner rural banks — Rural Bank of Panabo, Inc., Network Rural Bank, Inc. and Provident Rural Bank of Cotabato, Inc.
July 18, 2003 - Philippine Deposit Insurance Corporation (PDIC) approves the consolidation of the three rural banks.
December 22, 2003 - The Monetary Board, through resolution no. 1865 approved the consolidation and formation of the biggest rural bank in the country, One Network Bank.
January 2, 2004 - One Network Bank receives the notice of approval with incentives from the Bangko Sentral ng Pilipinas from BSP Governor Rafael Buenaventura
Rafael Buenaventura
Rafael Carlos Baltazar Buenaventura was a prominent banker in the Philippines and one-time governor of the Bangko Sentral ng Pilipinas ; he served under two Philippine presidents during one of the most tumultuous political transitions in the country’s history.Known for his fierce independence,...
.
March 14, 2004 - Thanksgiving Celebration and Launching held at The Venue in Davao City to officially launch the union of Rural Bank of Panabo, Inc., Network Rural Bank, Inc. and Provident Rural Bank of Cotabato, Inc. and celebrate the birth of One Network Bank.
April 1, 2004 - The three banks started its consolidated operations and with its combined resources formed the largest rural bank in the country.