Edward Charles GadorMay 24, 2013
WAC2: DBS Bank
DBS CEO, Jackson Tai, needed to make a strategy to criminal arrest the bad consumer sentiment brought about by the merger between DBS and Singapore's Post Office Savings Lender (POSB) and from tries to remove the identity of POSB from your market whilst, at the same time, to get bank competitive both in your area and internationally.
The Situation and Analysis
Knutson Tai had just become the CEO in the Development Bank of Singapore (DBS), the largest bank in Singapore and Southeast Asia. Between 1998 and 2001, DBS acquired acquired 6 financial institutions around the region. In addition, this was likewise the time when the bank provides seen a change in management three times in a span of only three years.
Singapore is well known throughout the world as an economic giant despite its small size. Likewise, their banking sector is known to end up being robust, well regulated and competently handled. In 1999, the federal government liberalized the banking sector and instituted reforms to free up access to home-based wholesale bank, enhance competition in retail banking, and place safeguards necessary for the market. Foreign banks could now own a lot more than 40% of domestic financial institutions and had been allowed to expand operations to compete with local banks. Local banks, alternatively, were prompted to combine their businesses to meet the challenges of international competition and global expansion.
DBS played an important role inside the government's technique to expand in another country as Singapore's home market pertaining to retail bank has come to saturation. Pursuing the series of mergers and purchases initiated simply by reforms, the country's regional banks have moved the Asian rating lists even though still slipping below their particular counterparts in the region. Despite regional expansion, Singaporean banks remained relatively small.
There is pressure, therefore , to get the local banking companies to compete with international financial institutions. This required banks to...