Csr Polytechnic Case Study Essay

Statement of the problemConsidering that polytechnic saving affirm Inc. A thrift rim suffering from a cringe-evoking operational losses and detonating device wish delinquent to its weak heedlessness, How would PSBI correct its unsatisfactory financial conditions and critically deficient performance? Objectives-To ensure the fulfilment of BOD in their duties and responsibilities to a lower place BSP circular 283 -To hire 3independent qualified ethical and in cussworthy workers in second-stringer of the terminated president and the resignation of its successor -To accompany BSP the infused additional uppercase of P5 Million-To immediately infuse the 57.4Million in the new chief city to comply with the minimum groovy requirement for thrift banks -To Strengthen the Banks risk management function in order to regain the trust back from its depositors and investorsAreas of consideration*EXTERNAL1. Legal/political in its ill fortune in fiduciary trust and confidence in fina ncial institutions so unrivaledr to help the capital markets and the economy it causes a great effects on soulfulness by the PBIs disregard of such corporate institution principle -PSBI must meet its required sum to enable to proceed 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 apt(p) under BSP circular 283 BOD fulfil their duties and responsibilities2. 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 surrender thrift bank from dwindling capital*Operating External factorsa) workforce PSBIs BOD had no banking experience, doing unethically acts or anomaliesb)Customers- individuals and small businessesc) Competitors- other banksB. Internal Aspects1. Financial Aspects-It is said that PSBI has its unsatisfactory financial condition that the bank is unstable and cannot withstand adverse business conditions and fluctuations because of its poor financial ratios which it requires the amount of P55.2milion capital to gain and to fully continue its operations due to capital deficiency and loss. 2. Operational-PSBIs operation resulting from memorandum of undertaking (MOU) off-key from bad to worse3. Management-the various financial anomalies undertaken by the management were found during the fraud and forensic audit of the bank therefore PSBIs improving such weak management because of also-ran in oversight functions and supervision on affairs inside bank set forth.-A complete failure in the fiduciary responsibilities of the officers swotSTRENGTHS WEAKNESSES-Wayward Group of companies (mother of PSBI)-failure in fiduciary trust-BOD had no experience in banking-Poor financial ratiosOPPORTUNITIES THREATS-Rehabilitation program-buyers, investors, depositors -adverse business conditions and fluctuations-stop operation as a thrift bankALTERNATIV E COURSES OF ACTIONA. Sell the bank preferably working on the impression that the bank performance would not cleanse due to weak managementPros-To save thrift bank from capital deficiency with four likely buyers (with an asking equipment casualty of P10million to P30million)Cons-considering that P1.00 selling price for the bank would not even be a bargain -Not one expressed any real interest to complete the purchase among these potential buyersB. Focus on Rehabilitation programPros Program designed to character reference the capital deficiency and operational losses of the bank Cons Considering that PSBI has no quality left because PSBI is undergoing from a cringe-evoking operational losses and capital deficiency due to its weak management C.Improve the importance of corporate governance principle in Fiduciary trust and confidence in financial institution Pros-help substantiate the banks risk management function-To regain the trust back from other depositors and investors -To save the bank from its financial conditions and critically deficient performance-To help capital markets, economy, and each individual lives-To continue operation as a Thrift bank-To improve good governance, managerial and operational factors outside and inside bank premisesCons-considering theres a complete failure in the fiduciary responsibilities of the officersD. Conduct annual examinationPros -to have an annual report on financial operations showed on investors -Must encourage and provide an accurate and punctual informations to their investors about financial status -To have a proper screening and access to PSBI banks employees and workers information in the internal management fields in actively oversight functions and monitor their affair of the bank -To avoid fraud and forensic audit of the bankCons-Considering that The Internal control system, which were supposed to provide a check and equipoise were all overridden to disregard