The Financial Management Practices of Eastwest Banking Corporation on Housing Loans

Abstract

This study aimed to know the financial management practices of East West Banking Corporation on housing loans. It used the quantitative research method. The chosen respondents were the controllers of Eastwest Bank with a total of 155 who accessed the loan application of the borrowers and answered the researcher-made questionnaire. Frequency of distribution, Percentage, Weighted Mean, One-way Analysis of Variance (ANOVA), t-test, and Ranking were utilized as statistical tools. The researcher concluded that there was a significant difference in the respondents’ assessments on the effectiveness of financial management practices in terms of collateral when the respondents were grouped according to the years of experience in housing loan. The respondents agreed that there was a difference in terms of capacity and capital when grouped by the average annual number of related training sessions in the last three years. When grouped according to by office assigned in terms of character, capacity, capital, and collateral, their assessments did not differ significantly. The researcher would like to recommend the conduct of checking on how the borrowers handle their bank accounts. It is highly recommended that it is helpful to check the other income received from other sources. The controllers of the bank should give attention to “Examining the net worth of the client thru submission of ITR/SALN.” The researcher suggests in terms of collateral that it should be located within the city or town so that it can easily and adequately be administered within the serviceable area of the branches. Generally, the bank should also consider the economic conditions that can affect a borrower’s ability to repay the loan, such as money supply, reserve requirements, inflation, and other aspects.