National Bank of Borneo Essay

I. NATIONAL BANK OF BORNEOII. COMPANY soilNational avow of Borneo is adept of local commits in Brunei. Its establishment was indebted to Mr. Khoo Teck Puat the vex of the detained Khoo expel intoxicate. Mr. Khoo Teck Puat is a son of a rich trader, who in 1933 merged some(prenominal) commits together to form Singapores biggest, OCBC or Overseas- Chinese desireing Corporation. After his impede rise in the position, he left over(p) and went to Malaysia.In Malaysia he founded Malaysian Banking and actually rapidly he was able to straight-from-the-shoulder 100 split upes in just one year. In six years time, the cuss that he founded equal that of OCBC in Singapore, with this he was able to profess 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 banks branch in Brunei. This branch was well-nigh to be closed in 1962 but with the help of share investment by the royal company, the bank this instant called National Bank of Borneo prospered.National Bank of Borneo is a bank which is the larger of the twain local banks in Borneo. It has advances of $ 1.128 billion, deposits of $ 1.147 billion, total pileus and reserves of $ 199.4 million, and a post task profit of $ 31.1 million.III. VIEWPOINTIV. STATEMENT OF THE businessOne case from Brunei concerns Khoo Teck Phuat and his son Khoo Ban Hock. The latter was managing director of NBB w. Under his charge, the bank loaned more than Brunei $1 billion (which is equivalent to Singapore $1 billion) to companies controlled by his father. These loans were undocumented andunsecured. It was claimed that these offences under Brunei banking laws by Khoo Ban Hock were committed under the control and his counseling of his father.When this dishonesty was discovered, the younger Khoo was sentenced to 3 years jail but later and served two. The elder Mr Khoo was not charged, but it was soundless that he made restitution of about S$600 million to cover the losses suffered by various party. Mr Khoo Teck Puat later went on to become a billionaire, and was of the largest shareholders in megabank prototype Chartered when he died in 2004. However, later the NBB scandal, he kept a subaltern profile.