Organization culture of Malayan banking
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Published: Tue, 16 May 2017
Mr. Khoo Teck Puat is from OCBC bank. His career started as a bank clerk. In 1950s, Khoo went on to become senior executive with the bank. After 10 years, Khoo recognized that his prospects at OCBC remained limited. Due to there is no room for career advancement open to him at OCBC, he has considered that there is no future. Hence, Khoo decided to set up his own bank and went on to apply for a banking license. License was granted to Khoo and few of his other OCBC executives left the bank to form Malayan Banking Berhad in 1960.
Malayan Banking Berhad or Maybank was incorporated in Malaysia on 31 May 1960. It has commenced operations on 12 September 1960. On 17 February 1962, Maybank was listed on the then Kuala Lumpur Stock Exchange (today Bursa Malaysia). Today, Maybank is among the top companies by market capitalisation on Bursa Malaysia.
Maybank is largest financial services group in Malaysia with total assets exceeding RM330 billion. The Group has an extensive global network of 1,750 offices in 14 countries namely Malaysia, Singapore, Indonesia, Philippines, Brunei Darussalam, Vietnam, Cambodia, China, United Kingdom, U.S.A., Bahrain, Papua New Guinea, Pakistan and Uzbekistan
The Group offers vast range of financial services and products. It is ranging from commercial banking, Islamic banking, investment banking, offshore banking, cards issuance, leasing and hire purchase, trustee services, stock broking, insurance, factoring, asset management, nominee services, venture capital and Internet banking. Today, the Maybank Group has over 40,000 employees who serve over 18 million customers worldwide, with 9.5 million customers in Malaysia alone.
1.0 MAYBANK’S CORE VALUES AS ORGANIZATION VALUES
Source : www.maybank2u.com.my
Maybank has five core values as foundation of business which came out from their Logo (T.I.G.E.R), all its staffs are guided by five core values, which they are to uphold, emulate and personify these values in their daily working lives. The Core Values, i.e. acronym T.I.G.E.R. which stands for Teamwork, Integrity, Growth, Excellence & Efficiency and Relationship Building.
1.1 DECISION MAKING PROCESS
Decision making process is an important role for senior management to ensure sustainability of its organisation success. Due to excellence & efficiency as one of its key value, transparency is very important in decision making process. For example, the composition of the Board fairly reflects the interest of the majority shareholder. This has adequately represented by the appointment of its nominee directors by not compromising interest of the minority shareholders. Influence by the nominees is balanced by the presence of independent directors on the board. Hence, the Board’s collective views carry significant weight in the Board’s decision-making process. As such, the interest of minority shareholders will be represented by the independent directors according to their roles and responsibilities.
Independent directors do not participate in the day to- day management of the Group. They do not engage in any business dealing with the Group. This is in order to ensure that they remain capable of exercising independent judgment. As such, the board will be satisfied and assured that no individual or group of directors has unfettered powers of decision which will create conflict of interest.
The Board believes that the quality of its directors is very vital. Each of them offers a broad range of experience, skills and knowledge. This is to ensure that they are able to spearhead the challenges, develop and drive the Group’s vision. Furthermore, the governance standards should be continuously upheld. The Chairman who functions as a leader of the organisation will always ensure that the Board’s decisions are based on consensus of the majority. In the event if there is any concerns or dissenting views by any of its directors, will be addressed accordingly and recorded in minutes of meetings.
The core values are not only meant for the management team, it also has affects its middle management, line managers and its staff. The core values are the guideline for its staff to base at for decision making process. For an example, if the supervisor is evaluating their staff performance, it will be made base on its core value on how the staff has met the goals set upon them such as Teamwork, Integrity, Growth, Excellence & Efficiency & Relationship Building.
1.2 POLICIES & PROCEDURES
Policies and procedures are the nerve of an organization. Its failure will have adverse impact on company’s performance. As such, Maybank has ensured compliance with internal control, and the prescribed laws and regulations by the regulators. These policies and procedures are set out in the Group’s Standard Practice Instruction and will be updated time to time in according to changes to the business environment and regulatory requirements. As integrity is one of its key value, they has established necessary controls to safeguard the bank and provide value added services to its shareholders and customers such as:
Annual business plan and budget is submitted to the Board for approval. Actual performances are reviewed against the targeted results on a monthly basis. This will ensure timely responses and corrective actions to be taken to mitigate risks. The Board will be updated with regular reports by the management on operating statistics, legal and regulatory matters. The Board is also tasked to approve any changes or amendments required to the Group’s policies.
In order to monitor progress of the company, the Board has set up several Board Committees to assist the Board in performing its oversight functions. This includes responsibilities on specific area on audit, compliance, controls and others. For example, Group Executive Risk Committee, Group Procurement Committee and Group Tender Committee. Hence, this committee has been entrusted to examine matters within their scope and report to the Board with their recommendations or corrective actions. Their function is also to ensure effective management and supervision of the areas under the respective Committee’s purview. The board has also set defined framework with approval limits for acquisitions and disposals of assets, awarding tenders, writing-off of operational and credit items, donations and operational expenses.
Recruitment and promotion policies/guidelines are established to ensure appropriate persons of capability are selected to fill the available position. Training programs are conducted to ensure that staffs are competent and trained properly while discharging their duties and responsibilities efficiently. This include face-to-face or through e-learning, semi and annual performance appraisals.
1.3 PLANNING & CONTROL
Maybank has established an on-going process for identifying and managing significant risks that may affect the achievement of its business objectives. The established process will be monitored and reviewed time to time to match the changes in the business environment. This process will be in place for the whole financial year under review. Apart from that internal control is designed to manage the Group’s risks. This is within an acceptable risk profit rather than eliminate the risk of failure while achieving goals and objectives of the Group.
Management roles includes:-
identifying and evaluating the risks faced;
formulating related policies and procedures to manage these risks;
designing, operating and monitoring a suitable system of internal controls; and
implementing the policies approved by the Board.
The board of directors has established key process in reviewing the adequacy and integrity of the system of internal controls. This system is reviewed by internal auditors on an annual basis to ensure the process is in compliant with the standard operating procedure. Failure to this process, the necessary department will be scrutinised for improvement. As a strong financial institution, Maybank has established an organisation structure with defined lines of responsibility, limits of authority and accountability. This is to suit the business and operations requirements. A strong team of Audit Committee is tasked to audit the processes established periodically and report to the board to thwart risk and exposures to the company.
Risk management principles, policies, procedures and practices are updated regularly to ensure relevance and compliance with laws. Rules and regulations and are made available to all employees to follow through. Risk Awareness Programs been conducted to create awareness to its employees on the control environment. Whistle blowing policy has been adopted for employees to report suspected misconduct or violations of the company’s policies and regulations.
Further to enhance Maybank’s control, (3) lines of Defence concept – risk taking units, risk control units and internal audit have been established. Each unit is responsible to manage risk inherent in business activities and to set the framework for developing tools. Internal audit is responsible to provide independent assurance and to oversee effectiveness of risk management.
1.4 INFORMATION PROCESSING & COMMUNICATION
Maybank Group’s Code of Ethics and Conduct sets out the sound principles and standards of good practice in the financial services industry, which are observed by the directors and its employees.
Both directors and employees are required to uphold the highest integrity in discharging their duties and in dealings with stakeholders, customers, fellow employees and regulators. This is in line with the Group’s Core Values which give emphasis on behavioural ethics when dealing with third party and fellow employees. The Group communicates the Code to all directors and employees upon commencement of their employment and is deemed to be part of the Terms and Conditions of Service.
Maybank, as a custodian of public funds, has a responsibility to safeguard its integrity and credibility. It is on this understanding that the organisation sets out clearly the code of ethics and conduct for its staff. The code stipulates the sound principles that will guide all Maybank staff in discharging their duties. It sets out the standards of good banking practice.
In addition to these, staff should:
Ensure integrity and accuracy of records and/or transactions.
Ensure fair and equitable treatment in all business dealings on behalf of the Bank.
Maintain the highest standard of service in their relationship with customers.
Maintain confidentiality of all relations and dealings between the Bank and its customers. However, confidential information concerning a customer may be given or made available to third parties only with prior written consent of the customer or when disclosure is authorised under the Banking and Financial Institutions Act, 1989.
Manage their financial matters well and not subject to pecuniary embarrassment.
Observe and comply with laws and regulations relating to the operations of the Bank.
Show appreciation, respect and customer centricity
Develop long-term and mutually beneficial relationships
Build customer loyalty and understand their expectations
Develop strong and friendly working relationship with colleagues to achieve business goals
Embrace and support diversity of workforce (e.g. gender, race, experiences &
Build mutually beneficial relationship with all stakeholders
At Maybank, staffs are guided by its Core Values of Teamwork, Integrity, Growth, Excellence & Efficiency and Relationship building. As an integral part of its staff daily efforts, these values will guide them to pursuit for growth and excellence. Any aspiration can come true with the right opportunity is the key word of Maybank. The management team has set their sights on selecting the brightest minds to be part of their team. The search is on for inspired individuals who are ready to go the distance with one of the leading financial institutions in Malaysia. Maybank offers the required opportunities for growth and excellence to achieve a mutually beneficial partnership and winning edge.
Maybank focuses on capturing growth opportunities in high growth while taking a proactive and conservative approach to capital management by continuing to establish their presence in high growth markets. Maybank’s strong track record of financial strengths and high credit ratings allow them to keep their momentum and continue with robust performance even amidst the current environment.
Strengthening their core business and franchise has made them gain competitive advantage by achieving synergies across their diverse group. They have achieved leadership across key and profitable segments. On the other hand, internationally, Maybank has captured tremendous value from new investments and continue to expand by delivering innovation and superior customer value. They are the top recruiter of talent and view their leadership pool and talent pipeline as key to materialise their aspirations. They constantly seek to enhance performance management by optimizing cost and focusing on effective Information Technology operations and enhancing employee productivity.
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