National Bank of Borneo
Case Study
National Bank of Borneo
Part 1
Overview
1. Time Context
The case of National Bank of Borneo happened on November 20, 1986, the date when the sultanate of Brunei announced the closing of the said bank. 2. Viewpoint
The viewpoint to be used in solving the case is that of Mr. Abdul Rahman’s, the newly appointed controller of NBB. 3. Major Policy Statement
National Bank of Borneo is a bank which is the larger of the two local banks in Borneo. It has advances of $ 1.128 billion, deposits of $ 1.147 billion, total capital and reserves of $ 199.4 million, and a post tax profit of $ 31.1 million.
4. Background of the Case a. The Company
National Bank of Borneo is one of local banks in Brunei. Its establishment was indebted to Mr. Khoo Teck Puat the father of the detained Khoo Ban HocK. Mr. Khoo Teck Puat is a son of a rich trader, who in 1933 merged several banks together to form Singapore’s biggest, OCBC or Overseas- Chinese Banking Corporation. After his impeded rise in the position, he left and went to Malaysia. In Malaysia he founded Malayan Banking and very rapidly he was able to open 100 branches in just one year. In six years time, the bank that he founded equal that of OCBC in Singapore, with this he was able to own 60% of Malayan Banking. Seven years later the Malayan Central Bank or BN Bank of Negara forced Khoo out, alleging excessive lending to his own companies. After leaving Malayan Banking he retained his interest in the bank’s branch in Brunei. This branch was about to be closed in 1962 but with the help of share investment by the royal company, the bank now called National Bank of Borneo prospered.
b. The Industry
NBB belongs to the banking industry. As with all the failure in the management of finance and all the controversies NBB is through, we can say that the bank is already on its decline stage. The company has the potential to be competitive internationally but these transactions to foreign
National Bank of Borneo
Part 1
Overview
1. Time Context
The case of National Bank of Borneo happened on November 20, 1986, the date when the sultanate of Brunei announced the closing of the said bank. 2. Viewpoint
The viewpoint to be used in solving the case is that of Mr. Abdul Rahman’s, the newly appointed controller of NBB. 3. Major Policy Statement
National Bank of Borneo is a bank which is the larger of the two local banks in Borneo. It has advances of $ 1.128 billion, deposits of $ 1.147 billion, total capital and reserves of $ 199.4 million, and a post tax profit of $ 31.1 million.
4. Background of the Case a. The Company
National Bank of Borneo is one of local banks in Brunei. Its establishment was indebted to Mr. Khoo Teck Puat the father of the detained Khoo Ban HocK. Mr. Khoo Teck Puat is a son of a rich trader, who in 1933 merged several banks together to form Singapore’s biggest, OCBC or Overseas- Chinese Banking Corporation. After his impeded rise in the position, he left and went to Malaysia. In Malaysia he founded Malayan Banking and very rapidly he was able to open 100 branches in just one year. In six years time, the bank that he founded equal that of OCBC in Singapore, with this he was able to own 60% of Malayan Banking. Seven years later the Malayan Central Bank or BN Bank of Negara forced Khoo out, alleging excessive lending to his own companies. After leaving Malayan Banking he retained his interest in the bank’s branch in Brunei. This branch was about to be closed in 1962 but with the help of share investment by the royal company, the bank now called National Bank of Borneo prospered.
b. The Industry
NBB belongs to the banking industry. As with all the failure in the management of finance and all the controversies NBB is through, we can say that the bank is already on its decline stage. The company has the potential to be competitive internationally but these transactions to foreign