Csr Polytechnic Case Study
Statement of the problem:
Considering that polytechnic saving bank Inc. A thrift bank suffering from a cringe-evoking operational losses and capital deficiency due to its weak management, How would PSBI improve its unsatisfactory financial conditions and critically deficient performance?
Objectives:
-To ensure the fulfilment of BOD in their duties and responsibilities under BSP circular 283
-To hire 3independent qualified ethical and trustworthy workers in replacement of the terminated president and the resignation of its successor
-To comply BSP the infused additional capital of P5 Million
-To immediately infuse the 57.4Million in the new capital to comply with the minimum capital requirement for thrift banks
-To Strengthen the Bank’s risk management function in order to regain the trust back from its depositors and investors
Areas of consideration
*EXTERNAL
1. Legal/political
- in its failure in fiduciary trust and confidence in financial institutions rather to help the capital markets and the economy it causes a great effects on individual by the PBI’s disregard of such corporate governance principle
-PSBI must meet its required amount to enable to continue its operation as a thrift bank but because of deficiency it can serve as a rural bank which has lesser minimum requirement that being a thrift bank
- given under BSP circular 283 BOD fulfil their duties and responsibilities
2. Economy
- Polytechnic Savings Bank, Inc. operating as an economy in the use of resources created to serve as a community focused which needed P82M to continue operation and save thrift bank from dwindling capital
*Operating External factors
a) Workforce –PSBI’s BOD had no banking experience, doing unethically acts or anomalies
b)Customers- individuals and small businesses
c) Competitors- Other banks
B. Internal Aspects
1. Financial Aspects
-It is said that PSBI has its unsatisfactory financial condition that the bank is unstable and cannot withstand adverse
Considering that polytechnic saving bank Inc. A thrift bank suffering from a cringe-evoking operational losses and capital deficiency due to its weak management, How would PSBI improve its unsatisfactory financial conditions and critically deficient performance?
Objectives:
-To ensure the fulfilment of BOD in their duties and responsibilities under BSP circular 283
-To hire 3independent qualified ethical and trustworthy workers in replacement of the terminated president and the resignation of its successor
-To comply BSP the infused additional capital of P5 Million
-To immediately infuse the 57.4Million in the new capital to comply with the minimum capital requirement for thrift banks
-To Strengthen the Bank’s risk management function in order to regain the trust back from its depositors and investors
Areas of consideration
*EXTERNAL
1. Legal/political
- in its failure in fiduciary trust and confidence in financial institutions rather to help the capital markets and the economy it causes a great effects on individual by the PBI’s disregard of such corporate governance principle
-PSBI must meet its required amount to enable to continue its operation as a thrift bank but because of deficiency it can serve as a rural bank which has lesser minimum requirement that being a thrift bank
- given under BSP circular 283 BOD fulfil their duties and responsibilities
2. Economy
- Polytechnic Savings Bank, Inc. operating as an economy in the use of resources created to serve as a community focused which needed P82M to continue operation and save thrift bank from dwindling capital
*Operating External factors
a) Workforce –PSBI’s BOD had no banking experience, doing unethically acts or anomalies
b)Customers- individuals and small businesses
c) Competitors- Other banks
B. Internal Aspects
1. Financial Aspects
-It is said that PSBI has its unsatisfactory financial condition that the bank is unstable and cannot withstand adverse