The Bank of Credit and Commerce International (BCCI) was an international bank formed by Agha Hasan Abedi, a Pakistani in 1972. It conducted business in 78 countries with over 400 branches. Start up capital for the creation of BCCI came from several sources, some including Sheikh Zayed bin Sultan Al Nahayan, Bank of America, and supposedly the CIA. BCCI was chartered in Luxemburg. The Cayman Islands and London served as headquarters for the majority of the BCCI's operations, such as treasury management. During the 1970s, BCCI experienced rapid growth. The company branched out and formed several different holdings companies. They also acquired banks and numerous Cayman based companies. The BCCI is frequently called the "Bank of Crooks and Criminals International). The BCCI from its' very inception was set up to evade centralized regulatory examination. They were also known to take part in other illegal activities, some including money laundering, financing the trafficking of arms, illegal immigration, the sale of nuclear technologies, and collaborating with terrorist groups. Some of their clients included the KGB, CIA, Osama Bin Laden, and Manuel Noriega. The BCCI was able to conceal many of their criminal activities by taking advantage of their bank confidentiality, through bribes, threatening witnesses, and keeping high ranking officials in their pockets. In 1991 the BCCI faced the most notorious financial scandal, later known as "$20-billion-plus heist" (Beaty & Gwynne 1993). Regulators from the United States and the United Kingdom conducted the investigation against BCCI. They found evidence proving that the BCCI was in fact involved in a long list of criminal activities. On July 5, 1991, the Bank of England closed BCCI; the regulators found the bank to be valueless. Many depositors and investors lost all their money, but were able to recover some of their money through various settlements.
...Issue in Corporate Failure of Bank of Credit and CommerceInternational (BCCI)
Introduction and background:
Bank of Credit and CommerceInternational known as BCCI was founded by Pakistani financer Mr. Agha Hasan Abedi in 1972. It’s headquarter was located in London and was incorporated in Luxembourg. BCCI was ranked 7th largest private bank with total assets which amounts to $20.6 billion. By the end of 1988, BCCI’s network included 417 offices in 73 countries. The annual report noted that the bank now served 1.3 million customers through 14,000 staff members of 90 nationalities. (Peter et al. 1992)
BCCI was initially funded by rich Arab businessmen who wanted high return on their investment without taking big risks. They haven’t got any solid base of finance since incorporated as they were dependent on their depositors to meets its operating expenses. The Bank of America initially held 25% of BCCI shares which they sold in 1980. BCCI’s main objective was to achieve rapid growth as it wanted to be become global bank which can represent third world. They gambled on futures and options trading and gave some high risk loans. It also raised millions of revenue by accounting techniques to show false profits and hided their losses which occur in trading and bad debt.
The biggest bank fraud in...
Bank of Credit and CommerceInternational
From Wikipedia, the free encyclopedia
Bank of Credit and CommerceInternational |
Industry | Banking |
Fate | Liquidation / Forced closure |
Defunct | 1991 |
Headquarters | London (incorporated inLuxembourg) |
Key people | Agha Hasan Abedi (Founder) |
Employees | approx. 30,000 |
The Bank of Credit and CommerceInternational (BCCI) was a major internationalbank founded in 1972 by Agha Hasan Abedi, a Pakistani financier. The Bank was registered in Luxembourg with head offices in Karachi and London. Within a decade BCCI touched its peak. It operated in 78 countries, had over 400 branches, and had assets in excess of US$20 billion, making it the 7th largest private bank in the world by assets.
BCCI came under the scrutiny of numerous financial regulators and intelligence agencies in the 1980s due to concerns that it was poorly regulated. Subsequent investigations revealed that it was involved in massive money laundering and other financial crimes, and illegally gained controlling interest in a major American bank. BCCI became the focus of a massive regulatory battle in 1991 and on 5 July of that year customs and...
redit unions and banks are both financial organisations that offer similar services. A Both credit union and a bank offer mortgages, equity loans, auto loans, savings accounts, debit cards, checking accounts, credit cards and many more similar facilities. While offering services that are alike they have very different processes. A bank is an institution, run for profit, where you deposit your money and are able to take your money out when every you want, however a credit union is an not for profit organisation in which the money you invest will allow you to buy a share of the institution, meaning you would own part of the credit union.
Founded in 1959, Australian Defence Credit Union (ADCU) has over 46,000 members, 39 branches within Australia and is worth more than $940 million dollars (ADCU n.d). The ADCU primarily focuses on the defence community however they openly welcome the general public, unlike other unions which are exclusive to specific communities. They are devoted to improving the lives of their members by being reliable, helpful as well as understanding and listening to their members in order to creating appropriate services for them. The ADCU understand and support member’s rights as well as providing a high quality standard of customer service.
Australian Defence Credit Union
$450,000 - 20 year home loan
...Date of Submission: 5/5/2013
Title of Assignment: CommerceBank
CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.
Student's Signature: Xiaoyan Jiang
Instructor's Grade on Assignment:
CommerceBank has the good outstanding achievement in the banking sector, it is not enough to stop going forward, CommerceBank wants to become the strong performer in whole business market and it also wants to leave a good impression on their customers whatever in head office or other stores. The “Retailtainment” is the main service point for “WOW!ing” customer of CommerceBank, it provides many special free services for their customers.
With these innovates, many other competitors were beginning to copy. Some people thought this is good, but some people are not. These innovates are good, but there also has some problem, such as how to make these special services on the same level in different branches, and is it a really good strategy for...
...Leadership at CommerceBank knew what it needed to do to be successful in the banking industry. They knew from the get go that they wanted to focus on differentiating themselves from competing banks. They wanted to compete on service rather than price recognizing that their prices weren’t always the best in the industry. Their corporate strategy was set around their customers having a positive, memorable, and consistent experience when they visit any of the CommerceBank branches. They relied heavily on research to determine why customers left their financial institutions in favor of a competitor and they made it their goal to make CommerceBank stand out from the rest. CommerceBank capitalized on what other banks were doing wrong.
Over the years, CommerceBank did everything from being opened seven days per week to handing out dog biscuits for drive-through customers to having bank mascots in the branches entertaining customers. During 2002, the retailtainment concept was introduced (Frei, 2006). The idea was ensuring customers were entertained even if they were in the branch waiting in long lines. Branches were encouraged to come up with ideas for the new concept. Ideas ranged from having hot dog carts in the branches to having jugglers engage in a performance. The goal was to...
...2. Barriers to entry
It has been often said the Internet has leveled the playing field, notably so in the world of E-commerce. At the very first stages of selling items and music products, K-Box® has demonstrated some inevitable barriers to entry.
Getting a license from authority
K-Box® can be free to set up an E-commerce site, design our own layout, display products’ images and label these on the site. People can visually see which type of products K-Box® selling, however, authorities have to check its contents and characteristics whether they might contain illegal pattern or not.
Safe & Secure
We use the latest encryption technology and security procedures to always protect customers’ personal data. We also protect their privacy by not renting or selling their name or personal information to any third parties. We will also never send customers K-Box® marketing emails without their permission. However, the way of convincing our prospective customers to purchase on our site is a very tough challenge. How can we prove our services’ quality to customers? And, how we can get repeat customers? These are questions that we have to carefully consider.
3. Marketing strategies
K-Box® is going to use the most feasible marketing strategies to reach our customers in E-commerce market.
Build a presence on social media platforms
For example, there are many KPOP fan pages established already on Facebook. Therefore, there will be a great...
...CREDIT CONTROL BY CENTRAL BANK
Credit control policy or Monetary policy may be defined as "that branch of economic
policy which is concerned with the regulation of the availability or supply, the costs and
the directions of credit."
OBJECTIVES or GOALS
The objectives of credit control of monetary policy have been different at different times
in different countries according to the economic situations and problems faced by them.
In the modern times economic development with monetary stability is accepted as the
most important goal of credit control.
The main objective of this credit-control function is to save economy from inflation and
deflation and to stabilize the economy and prices.
METHODS OF CREDIT CONTROL
Credit control is one of the most important responsibility of a central bank. Central bank
of a country can control credit by following two methods.
(1) Qualitative controls (2) Quantitative controls
Quantitative controls are used to expand or contract the total quantity (overall size) of
credit. These controls are of the following kinds:
1. Bank rate policy
2. Open market operations .
3. Variable reserve ratios
4. Liquidity ratio
5. Credit rationing...
CommerceBank has been a pioneer in the banking industry by returning to customer service. This has driven customers to the bank, but in order to stay ahead on the curve they want to move away from the model that has worked for them.
An analysis was performed regarding whether their new concept of “retailtainment”, entertaining customers throughout the banking service process, would be beneficial or not. After thorough consideration, it was determined that “retailtainment” was not the best way to improve Commerce’s quality of service. Commerce should focus on their former centralized model and enhance it, rather than change it.
CommerceBank is a New Jersey-based bank founded in 1973 by fast food franchiser Vernon Hill. Hill took his experience as a fast food business owner and utilized it to operate CommerceBank. Commerce had branches opening earlier than the competitors and staying open later, 7:30AM to 8:00PM during the week and modified hours on Saturday and Sunday (Frei, 2006). Drive-through windows at busier locations even stayed open until midnight to accommodate customers; however, all branches operated under the notion that they were to open ten minutes before and close ten minutes after the posted time (Frei, 2006).
Commerce used this model to get customers in the door and...