National Bank of Borneo Essay

I. NATIONAL brink OF BORNEOII. COMPANY BACKGROUND national Bank of Borneo is genius 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 capital of 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 Malayan Banking and very quickly he was able to open 100 branches in just one year. In six eld 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 oblige 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 unless with the dish out of share investment by th e royal company, the bank now 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 capital and reserves of $ 199.4 million, and a abide tax profit of $ 31.1 million.III. VIEWPOINTIV. STATEMENT OF THE PROBLEMOne grammatical 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 much than Brunei $1 billion (which is equivalent to Singapore $1 billion) to companies go steadyled by his father. These loans were unregistered 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 not charged, but it was understood tha t 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 Standard Chartered when he died in 2004. However, after the NBB scandal, he kept a low profile.