Csr Polytechnic Case Study Essay

Statement of the problemConsidering that polytechnic saving cant Inc. A economy pious platitude suffering from a cringe-evoking effectal losses and roof wishing due(p) to its adynamic management, How would PSBI improve its unsatisfactory pecuniary conditions and critic every(prenominal)y wanting(p) performance? Objectives-To ensure the fulfilment of BOD in their duties and responsibilities chthonic BSP neb 283 -To hire 3independent qualified ethical and trustworthy workers in replacement of the terminate president and the resignation of its successor -To comply BSP the infused additional majuscule of P5 gazillion-To immediately infuse the 57.4Million in the new capital to comply with the token(prenominal) capital requirement for tightfistedness banks -To Strengthen the Banks chance management function in order to regain the trust cover song from its depositors and investorsAreas of consideration*EXTERNAL1. Legal/political in its failure in fiduciary trust and confi dence in financial institutions rather to religious service the capital markets and the economy it causes a great effects on man-to-man by the PBIs disregard of such corporate governance normal -PSBI must meet its required amount to enable to pass on its operation as a economy bank but because of inadequateness it flowerpot serve as a rural bank which has lesser stripped requirement that being a thrift bank given under BSP circular 283 BOD fulfil their duties and responsibilities2. Economy Polytechnic Savings Bank, Inc. operating(a) 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 factorsa) Workforce PSBIs BOD had no banking escort, doing unethically acts or anomaliesb)Customers- individuals and small businessesc) Competitors- Other banksB. midland Aspects1. Financial Aspects-It is said that PSBI has its unsatisfactory financial condition tha t the bank is fluid 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 deprivation and loss. 2. Operational-PSBIs operation resulting from memorandum of undertaking (MOU) turned from big to worse3. Management-the various financial anomalies undertaken by the management were ready during the fraud and forensic audit of the bank therefore PSBIs ameliorate such weak management because of failure in oversight functions and care on junctures inside bank premises.-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 th rift bankALTERNATIVE COURSES OF ACTIONA. Sell the bank instead works on the impression that the bank performance would not improve due to weak managementPros-To save thrift bank from capital deficiency with four potential buyers (with an asking price of P10million to P30million)Cons-considering that P1.00 selling price for the bank would not even be a bargain -Not one denotative any real interest to complete the purchase among these potential buyersB. taper on Rehabilitation programPros Program designed to address the capital deficiency and operationallosses of the bank Cons Considering that PSBI has no choice go away 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 strengthen the banks risk management function-To regain the trust subscribe 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 obedient governance, managerial and operational factors outside and inside bank premisesCons-considering theres a complete failure in the fiduciary responsibilities of the officersD. yield annual examinationPros -to have an annual report on financial operations showed on investors -Must encourage and provide an accurate and timely schoolings to their investors about financial status -To have a veracious screening and access to PSBI banks employees and workers information in the inherent management fields in actively oversight functions and supervise their affair of the bank -To avoid fraud and forensic audit of the bankCons-Considering that The privileged control system, which were supposed to provide a check and balance were all overridden to disregard