Topics: Bank, Credit card, Royal family Pages: 2 (275 words) Published: February 27, 2011
Time Context: 1986

Point of view: Sultan Hassanaal Balkiah
Main Problem: The National Bank of Borneo is closed by the Government in 1986 due to fraud and abatement to cheating the banks depositors by making loans without guarantee, collateral, or documentation and falsifying the banks annual account statement. Secondary Problem:

1. The government had to guarantee the deposits of the creditors which were citizens of Brunei and the non- citizens will be. 2. The Bank does not have enough money to pay its creditors. 3. The Royal Family were embarrassed by the failure of the NBB in which some of its members were associated. Government Objectives:

To reimburse the creditors of the bank and redeem the reputation of the royal family.

Areas of Consideration:

➢ The sultan, being the prime minister holds the supreme power in the country. ➢

➢ Brunei was a newly independent and rich nation coming into terms with the business and financial world. ➢ Brunei has weak policies regarding the banking system in their country. ➢ The wealth of the state could be used by the Sultan

➢ It was believed that the investment of Khoo from Standard Chartered Bank was from the funds of National Bank of Brunei. ➢ The bank had transactions with some 40 banks worldwide one of which is in London based American Express Bank to the amount of US$ 25 million ➢ Khoo Teck Puat still has profitable investments.

➢ Brunei only has one remaining bank to cater the needs of its citizens.

1. The government should change its decision of closing the bank and continue its operation under a new management. Pros

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