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    C4 Golden

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    Jonuelin Infante
    Golden Opportunity Commercial Banks is facing unstable status in October 2008 due to recurring overdrafts and losses. It aims to recover $5 billion in losses by requesting a loan from the central bank with lower interest and fees over 10 years. The best alternative course of action is to downgrade the company status to a thrift bank, as it has the highest probability of success due to lower risk and requirements compared to the other options of loans from other institutions or negotiating with creditors.

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    C4 Golden

    Uploaded by

    Jonuelin Infante
    583 views4 pages
    Golden Opportunity Commercial Banks is facing unstable status in October 2008 due to recurring overdrafts and losses. It aims to recover $5 billion in losses by requesting a loan from the central bank with lower interest and fees over 10 years. The best alternative course of action is to downgrade the company status to a thrift bank, as it has the highest probability of success due to lower risk and requirements compared to the other options of loans from other institutions or negotiating with creditors.

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    strataman

    Original Title

    C4 GOLDEN

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    Golden Opportunity Commercial Banks is facing unstable status in October 2008 due to recurring overdrafts and losses. It aims to recover $5 billion in losses by requesting a loan from the central bank with lower interest and fees over 10 years. The best alternative course of action is to downgrade the company status to a thrift bank, as it has the highest probability of success due to lower risk and requirements compared to the other options of loans from other institutions or negotiating with creditors.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    583 views4 pages

    C4 Golden

    Uploaded by

    Jonuelin Infante
    Golden Opportunity Commercial Banks is facing unstable status in October 2008 due to recurring overdrafts and losses. It aims to recover $5 billion in losses by requesting a loan from the central bank with lower interest and fees over 10 years. The best alternative course of action is to downgrade the company status to a thrift bank, as it has the highest probability of success due to lower risk and requirements compared to the other options of loans from other institutions or negotiating with creditors.

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    You are on page 1of 4

    I.

    TITLE OF THE CASE:

    GOLDEN OPPORTUNITY COMMERCIAL BANKS

    II. TIME CONTEXT:

    October 2008

    III. PERSPECTIVE/VIEWPOINT

    New Management of Golden Opportunity Commercial Banks

    IV. STATEMENT OF THE PROBLEM

    How can Golden Opportunity Commercial Bank deal with their unstable status?

    V. STATEMENT OF OBJECTIVES

    To recover the loss at 5billion by requesting a loan from BSP which carry a lower
    interest rate and fees, payable in 10 years time.

    VI. AREAS OF CONSIDERATION

    STRENGTHS
    • GOCB was very innovative company which can easily adapt changes happen in the
    society to satisfy and meet the customer’s needs.
    • Expanded in the areas in trading bond and stocks
    • Offer its stockholders a safe and profitable vehicle in for investing and lending.

    WEAKNESSES

    • Heavily relying on the inter-bank loans granted by RCB to cover its overdraft
    • The bank had incurred recurring overdrafts in its demand deposits with the BSP.
    • Officers who took advantages of their positions.
    OPPORTUNITIES

    • The bank teamed up with the GRC and entered into guarantee agreement with the
    HGC.
    • Emergency loans
    • Finance GOCB to recover from losses.

    THREATS

    • Monetary loss
    • System glitch
    • Fraud

    VII. ALTERNATIVE COURSES OF ACTION

    ACA 1
    Downgrade Company status

    Advantage: Reducing the status from commercial bank to thrift bank because thrift
    bank has lesser requirement compared to commercial bank

    Disadvantage: higher risk

    ACA 2
    Loan from other financial institution

    Advantage: Ability to obtain a large amount of money quickly that can be used for
    purchases and investments

    Disadvantage: Borrowers with bad credit can likely only attain a loan at higher
    interest rates.

    ACA 3
    Negotiate with your creditors
    Advantage: Most creditors are willing to negotiate a settlement so that they receive a
    portion of their money, instead of losing everything

    Disadvantage: Requires the agreement of all creditors.


    VIII. CONCLUSION

    CRITERIA ACA1 ACA2 ACA3

    Risk Involve 3 1 2

    Additional Investment 2 3 1

    Practicability of the 2 1 3
    Implementation
    Total 7 5 6

    Legend: 3 being the highest, 1 the lowest

    IX. RECOMMENDATION

    We highly recommend the Alternative Course of Action 1 which is to Downgrade


    the Company Status because it has the highest probability rate of 7 among the three
    given ACA.

    X. PLAN OF ACTION

    Activity Person/s Responsible Time Frame


    All-important holiday shopping
    season is expected to be low on
    cheer this year for retailers who Bank Analysts Continuous
    usually generate up to 40% of
    their annual revenues in the
    months leading up to Christmas.
    The newly passed Socialized and
    low Cost Housing Loan
    Restructuring Law will cover all
    socialized and low-cost housing
    loans from government financing Bank Analysts Continuous
    institutions and agencies with at
    least 3 months of unpaid monthly
    amortizations, and of which the
    original principal amount does not
    exceed P2.5M.

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