National Bank of Borneo Essay

I. NATIONAL BANK OF BORNEOII. COMPANY BACKGROUNDNational expatriatek of Borneo is one of topical anesthetic banks in Brunei. Its establishment was obligated(predicate) to Mr. Khoo Teck Puat the father of the detained Khoo relegate Hock. Mr. Khoo Teck Puat is a son of a rich trader, who in 1933 merged several banks together to form Singapores biggest, OCBC or Overseas- Chinese Banking Corporation. After his impeded rise in the position, he left and went to Malaysia.In Malaysia he founded Malaysian Banking and very rapidly he was able to open degree centigrade 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 banks branch in Brunei. This branch was about to be closed in 1962 but with the sustain of share investment by the royal company, the bank now called National Bank of Borneo prospered.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.III. VIEWPOINTIV. STATEMENT OF THE PROBLEMOne 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 direction of his father.When this dishonesty was discovered, the younger Khoo was sentenced to 3 years jail but later only served two. The elder Mr Khoo was non charged, but it was u nderstood 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 go away a billionaire, and was of the largest shareholders in megabank Standard Chartered when he died in 2004. However, after the NBB scandal, he kept a low profile.