Organizational Structure and General Functions
PHILIPPINE POSTAL SAVINGS BANK, INC.
OFFICE OF THE BOARD OF DIRECTORS
A. OFFICE OF THE CORPORATE TREASURER
• Custody and control of all funds, securities and properties of the Bank.
• Deposit or cause to be deposited all monies and other valuable effects in the name and to the credit of Bank in compliance with applicable laws, rules and regulations;
• Regularly and at least quarterly render to the PCEO or to the Board an account of the condition of the funds of the Bank and all of his transactions as such;
• Ensure fund availability on a timely basis and at the most economical means;
• Optimize yields in temporary excess funds, but at the same time ensure the implementation of appropriate risk management measures over its resources;
• Provide relevant and timely financial market information;
• Perform such other responsibilities as the Board may impose.
B. OFFICE OF THE CORPORATE SECRETARY
• Prepare agenda and minuets of Board and Committee Meetings in consultation with the Chairperson and PCEO;
• Ensure that the minutes are accurately recorded, approved and attested;
• Serve as secretariat for all meeting of the Board;
• Ensure that records of the Bank are maintained as required by law and made available when required by authorized persons;
• Ensure that proper notification of Directors and Members’ meetings is given. lt shall manage general correspondence of the Board of Directors, except as such correspondence assigned to others; and
• Perform such other duties and responsibilities as may be assigned by the PPSB Board of Directors and Chairperson.
C. RISK MANAGEMENT OFFICE
• Responsible for overseeing the Bank’s adoption and maintenance of an adequate risk management program involving identification, measurement, monitoring and controlling risks.
• lt is responsible for the implementation of the approved Risk Management Charter.
D. INTERNAL AUDIT OFFICE
• Performs an independent, critical and systematic examination or review of accounting reports, documents, records and procedures for the purpose of determining their conformity with prescribed criteria.
• Responsible for reviewing all financial transactions, management practices and such other practices of the bank to determining their conformity to prescribed government regulations, accounting practices and procedures for the purpose of determining its effectiveness and efficiency in its operations.
• Responsible for conducting an independent and systematic review of existing internal control procedures to ensure adequacy and when necessary, recommend changes to improve their adequacy in safeguarding bank assets, promoting efficiency of operations and ensuring the reliability and security of its records.
• Plans, directs and controls activities of auditing to achieve the established objectives and targets of the office within the guidelines and limits of authority prescribed by the Board of Directors and other regulatory bodies.
• lt shall be responsible for the implementation of the approved lnternal Audit Charter.
• Perform such other duties and functions as are incidental to the office and those which, the Board of Directors may from time to time require and/or prescribe.
E. COMPLIANCE OFFICE
• Responsible for the design of the Bank’s compliance system that includes the compliance program specifically identifying and mitigating business risks that may erode the value of the Bank.
• lt shall be responsible for the implementation of the approved Compliance Charter.
2. EXECUTIVE OFFICES
A. OFFICE OF THE PRESIDENT AND CHIEF EXECUTIVE OFFICER
• Exercise general supervision and authority over the regular course of business, affairs, and property of the Bank, over its employees and officers;
• See to it that all orders and resolutions of the Board are carried into effect;
• Submit to the Board as soon as possible after the close of each fiscal year, and to the shareholders at the annual meeting, if applicable, a complete report of the operations of the Bank for the preceding year, and the state of its affairs;
• Report to the Board from time to time all matters which the interest of the Bank may require to be brought to its notice; and
• Perform such other duties and responsibilities as the Board may impose.
1. SECURITY DEPARTMENT
• Responsible for the preparation of a reasonable, effective and updated security program for the Bank and overall direct supervision and implementation of the Bank’s Security Program to protect its employees, resources, and clients.
• Assists Human Resource Department in background investigation of employees.
2. HUMAN RESOURCES DEPARTMENT
• Responsible for the welfare of the employees during their employment with the Bank. Develops, devises, advises on and implements HR policies, systems and procedures.
• Provides adequate and competent workforce through training and development.
• lt shall be in charge of the administration of personnel movements and processing of employee benefits.
• Monitors the implementation of the succession plan.
• Administers the job evaluation program. Manages job performance and total compensation system including benefits, incentives and rewards.
• Acts as Secretariat to the Ad Hoc Committee concerning personnel violations.
2. LEGAL SERVICES DEPARTMENT
• Renders legal advice and reviews documents and contracts for legal sufficiency.
• Analyzes and advises Management on existing and new cases and rulings affecting banking operations.
4. REMEDIAL AND ASSETS MANAGEMENT DEPARTMENT
• Responsible for addressing and controlling the risks of loan delinquency and loan default
• It sha‖ address the growing non― perforrning loan (NPL) portfolio of the Bank and ensure its maxirnum collection/recovery of assets prior to its endorsement to the Legal Services Department
5. MARKETING DEPARTMENT
• Responsible for conducting market research, identifying business opportunities and developing strategies for achieving company targets and objectives.
• Responsible for crafting the Bank’s corporate image to best reflect its chosen market niche.
6. TREASURY GROUP
6.1. TREASURY DEALING DEPARTMENT
• Manage the Bank’s resources through investment of excess funds in local and foreign currency denominated debt instruments as approved by the Board of Directors.
• Monitor the Bank’s liquidity position and engage in interbank borrowing and lending to meet liquidity needs of operations and Bangko Sentral ng Pilipinas (BSP) cover requirements.
• Set guidelines for pricing of deposit products to attract funders and optimize funding cost.
6.2. TREASURY MARKETING DEPARTMENT
• Conducts marketing activities to generate the necessary funding requirements to support lending and investing activities of the Bank
7. CREDIT MANAGEMENT GROUP
• Responsible for the implementation of sound credit administration procedures throughout the bank, ensuring full and appropriate use of bank resources, while still being consistent with your bank’s goals and objectives.
7.1. APPRAISAL AND CREDIT INVESTIGATION DEPARTMENT
• Responsible for the conduct of credit investigation and collateral appraisal. Assists in the initial evaluation of the loan applicant by way of credit investigation.
• Conducts inspection and appraisal of collateral offered for loans per approved lending guidelines.
• Directs and supervises the conduct of credit investigation, asset appraisal, project monitoring and such other fields of endeavor to attain planned objectives.
• Responsible for the safekeeping of all documents pertaining to credit investigation and collateral appraisal.
7.2. LOANS OPERATIONS AND MONITORING DEPARTMENT
• Responsible for the confirmation, documentation, settlement, collection, document safekeeping and report preparation functions of all transactions pertaining to loans operations. Acts as backroom of the head office.
• Responsible for the centralized loans operations reporting.
• Responsible for the Bank’s central liability system.
7.2. CREDIT EVALUATION DEPARTMENT
• Ensures the evaluation of the borrower’s risk rating and collateral risk rating of all regular loans.
• Validates the submitted financial statements and analyzes the borrower’s financial projections.
• Analyzes financial and other relevant data such as income growth, quality of management, and market share to determine expected loan profitability.
• Ensures accuracy of the financial analyses performed by the account officers prior to its submission to appropriate approving authorities.
• Provides industry analysis to lending units.
8. CORPORATE BANKING GROUP
• Plans, organizes, leads and controls all account management operations of the Bank consistent with the risk parameters set by Risk Management Office (RMO) and the Manual on Lending Operations (MOLO).
• lt shall design and implement policies, procedures and guidelines on loans in accordance with regulatory bodies.
• lt shall formulate and recommend policies, rules and regulations, systems and procedures for the effective implementation of its plans to improve and enhance competitiveness of the Bank at par within the industry.
• The Group shall also be responsible for the review and development of responsive products and services as well as development of strategies and promotional activities to boost the marketability of the different products and services of the Bank.
8.1. CORPORATE BANKING DEPARTMENT I AND II
• Total account management of all loan accounts from inception to collection at the Head Office consistent with the Manual on Lending Operations.
• Focus on markets identified by Management in accordance with the approved Business Plan of the Bank.
• Evaluate loan proposals and analyze financial and loan information to determine loan feasibility.
• Review, evaluate, validate, and endorse loan proposals to approving authorities in conformity with the risk parameters set by RMO.
• Plan the mix and volume of loan portfolio and formulate strategies to achieve them. Formulate, arrange / utilize special financing programs.
9. ADMINISTRATIVE AND COMPTROLLERSHIP GROUP
• Plans, leads, organizes, implements and controls all support services activities.
• Formulates and implements policies, procedures and guidelines in accordance with regulatory bodies to ensure efficient and effective operations without sacrificing internal control.
• Provides an efficient and effective accounting services to the Bank and implements the appropriate financial control and review system involving the corporate accounts.
• The Head of the ACG shall act as the Comptroller of the Bank.
9.1. ACCOUNTING DEPARTMENT
• Ensures effective implementation of the financial control system on operational expenses.
• Ensures that expenditures are within prescribed policies, laws, rules and regulations. Supervises the General Accounting Division,
• Reconciliation and Reports Division, and Budget Division. Responsible for the accounting / bookkeeping, budget administration, reports preparation, and disbursement activities of the Bank.
9.2. LOANS AND TREASURY ACCOUNTING DEPARTMENT
• Responsible for the accounting and report preparation functions of all transactions pertaining to loans and treasury operations.
• Prepares proof sheets and block sheets for daily transactions and balances end-of-day transactions.
• Prepares schedules of past due accounts and accounts receivables, aging of past due accounts and accounts receivables, accrued interest receivables and payables, as well as other accounts that may be requested by Management.
9.3. GENERAL SERVICES DEPARTMENT
• Provides general services Bankwide.
• Supervises purchase of supplies and other items for the Bank at the lowest cost possible without sacrificing quality.
• Provides and maintains transport and communication facilities as well as messengerial services to concerned units.
• Responsible for the maintenance and upkeep of the Bank’s properties including but not limited to furniture, fixtures, equipment, vehicles, etc. Responsible for the timely dissemination of relevant information and documents to concerned units of the Bank.
• Responsible for the dispatch of vehicles, its proper maintenance and the development of policies and procedures to prolong the life and use of vehicles.
• lt shall direct the disposal of unserviceable vehicles and shall take charge of the timely registration and insurance of all the Bank vehicles.
• Perform secretariat function for the Bids and Awards Committee.
9.4. CLEARING DIVISION
• Manages activities involving clearing and distributing of all checks received and sent by the Bank, and ensures timely and appropriate clearing operations to support all concerned units of the Bank.
• Recommends policies for appropriate and effective internal control in clearing operations.
10. INFORMATION SYSTEMS AND TECHNOLOGY MANAGEMENT GROUP
10.1. INFORMATION TECHNOLOGY DEPARTMENT
• Provide the leadership, management and supervisory functions to plan, implement, operate and administer the various lnformation Technology components of hardware, software, networks and data center facilities (including backup) for both the Core Banking and Extended Banking lnformation Systems installed in the Head Office and the Branches.
• The work includes report preparation, data backup processes, online support to lS users, liaison and coordination with lT suppliers and service providers, feedback and recommendations for improvement in the various aspects of their work and current operations documentation and manuals, using the appropriate change reporting process.
10.2. IT APPLICATIONS DEPARTMENT
• Provide the leadership, management and supervisory functions to plan, develop, implement and administer the programs and projects for the application of computer and communications technologies to Core Banking lnformation Systems, to include Deposit, Loans, Treasury, Human Resources, Assets and Corporate Communications.
• The Department shall perform the functions of project management, systems design and development, construction and implementation, and change management. ln the process, the Department shall perform outsourcing work (as alternative to in-house development) project risk assessments, risk mitigation and contingency plans, incorporation of security measures and control, and planning and design of security, control and business continuity plans and programs.
B. OFFICE OF THE EXECUTIVE VICE PRESIDENT
• Responsible for the overall management of the Branch Banking Group, Microfinance Department, Consumer Loans Department, Remittance/Extended Banking Group and Corporate Services Management Department.
1. CORPORATE MANAGEMENT SERVICES DEPARTMENT
• Responsible for budgeting and financial planning, liaising with GCG and ensuring Bank compliance with its requirements, review and initiation of policy and process improvements, and providing secretariat support to the Mancom and Lendcom.
2. CONSUMER LOANS DEPARTMENT
• Handle the formulation of marketing strategies to promote the Bank’s consumer loan products as well as to provide regular updates on relevant policies and procedures pertinent thereto.
3. MICROFINANCE DEPARTMENT
• Overseas and regulates the operation of microfinance portfolio of the Bank. Provides support to enable microfinance units to achieve its purpose of extending the Bank’s financial reach to the unbanked and underserved communities
4. EXTENDED BANKING GROUP
4.1 REMITANCE DEPARTMENT
• Responsible for the formulation and development of policies and procedures on remittance operations and its strict implementation.
• Monitors and controls incoming/outgoing remittances to and from outside the Bank to its destination.
• Manages the day-to-day operations on remittance from front line support to back-end monitoring and reconciliation.
4.2 E-CHANNEL DEPARTMENT
• Manage the Bank’s ATM network to insure reliable operation and application of internal controls.
• Provide support to the preparation of initial studies, introduction, including launching activities and management and operation of new products such as foreign and domestic.
5. BRANCH BANKING GROUP
• Overall management, administration and control of operations in the area offices and branches.
• Determines and plans activities for existing and future branch expansion in conformity with the objectives set by the Bank.
• Monitors performance of the branches against their targets.
• Responsible for the administrative control of branch operations; Provides prompt, reliable and accurate support services to the Branches.
5.1. BRANCH SUPPORT DEPARTMENT
• Responsible for the preparation of strategic plans and budgets, periodic reporting and monitoring of branch activities, and operational analyses, as well as deposits and loans performance monitoring of branches.
• Responsible for the administrative control of branch operations and provides prompt, reliable and accurate support services to the Branches.
• lt shall also be responsible for the review of all loan proposals endorsed by the branches prior to legal review and endorsement to approving authorities.
• lt shall analyze, evaluate and validate financial and loan information to determine loan feasibility in accordance with the MOLO and RMO risk parameters.
• lt shall prepare and plan the mix and volume of loan portfolio and formulate strategies to achieve them. lt shall provide technical assistance and guidance to all areas/branches on loan policies and procedures and documentation as well as account management.
5.1.1. AREA OFFICES
• Overall management of banking activities of the branches within the area.
• Conduct general banking operations and maintains a complete set of books of accounts.
• METRO LUZON AREA OFFICE
1. MAIN BRANCH
2. SAN PABLO BRANCH
3. MALOLOS BRANCH
4. MABALACAT, PAMPANGA BRANCH
5. LIPA BRANCH
• NORTH LUZON AREA OFFICE
6. DAGUPAN BRANCH
7. ASINGAN BRANCH
8. BAGUIO BRANCH
9. SAN FERNANDO, LA UNION BRANCH
10. TARLAC BRANCH
11. TUGUEGARAO BRANCH
• SOUTH LUZON AREA OFFICE
12. NAGA BRANCH
13. LAGASPI BRANCH
14. SORSOGON BRANCH
15. TIGAON BRANCH
• VIZAYAS AREA OFFICE
16. TACLOBAN BRANCH
17. CEBU BRANCH
18. HIMAMAYLAN BRANCH
19. ILOILO BRANCH
20. TAGBILARAN BRANCH
21. BACOLOD BRANCH
• MINDANAO AREA OFFICE
22. CAGAYAN DE ORO BRANCH
23. MANOLO FORTICH BRANCH
24. DAVAO BRANCH
25. ZAMBOANGA BRANCH
MICRO‐ BANKING OFFICE
• Provides a wide range of transactional activities which reflect the particuiar needs of the unserved and underserved market particularly microfinance clients, overseas Filipinos and their beneficiaries. This MBO is authorized to provide services that are appropriately designed for the target market such as to accept micro‐ deposits,disburse micro‐ loans and collect payments, sell , market and service microinsurance products, receive and pay out authorized remittance transactions, act as cash in/out points for electronic money, receive utility payments, collect premiums and pay out benefits from social security institutions and other benefit systems including government conditional cash transfer programs, and purchase a limited level of foreign currency. The MBO shall only perforrn the activities for which it has specifically applied for and had been authorized to perform
MICRO‐ FINANCING UNITS