Understanding Business Failure: Learning and Un‐Learning From Industrial Crises (original) (raw)

Lessons regarding bank failures. An overview

… ale Universitatii" Alexandru Ioan Cuza" din …, 2009

In this paper we evaluate the main causes and consequences of bank failures. Starting from the theoretical level and identifying traditional and modern causes, common and specific causes for bank failures, we continue with an analysis of the Romanian case. The Romanian banking system had several major problems, concentrated between the two World Wars and in the nineties, on different economic backgrounds.

Understanding the Causes of Business Failure Crises

Management Decision, 1994

... The Authors. Bill Richardson, Based at Sheffield Hallam University, UK. Sonny Nwankwo, Based at Sheffield Hallam University, UK. Susan Richardson, Based at Sheffield Hallam University, UK. Abstract. Addresses the issue of business failure. ...

Bank Sector Crisis: The Case of Barings Bank and Lehman Brothers Holdings Inc: An Abridged Version

Bank crisis is mostly traced to decreases in value of banks’ assets. This could occur in one of many ways, or a combination of several instances; when loans turn bad and underperform (credit risk); when there are excess withdrawals over available funds (liquidity risk); and rising interest rates (interest rate risk). Bad credit management, market inefficiencies and operational risk are among a host others that trigger panic withdrawals because customers suspect a loss of investment. This brief article restates parts of extant literature on reasons Barings Bank and Lehman Brothers failed, and lessons learnt thereafter. Peculiar to the failure of Barings Bank and Lehman Brothers Holdings Inc., array of factors spanning from lack of oversight role relative to employee unethical conduct in the course performing assigned duties, to management’s involvement in dubious accounting practices, unethical business practices, overindulging in risky and unsecured derivative trade. To guide agains...

CORPORATE FAILURE AND TURNAROUND STRATEGIES IN BANKING INDUSTRY

This paper is a theoretical exposition into the causes of bank failure and different strategies to turn ailing banks around. It is quite timely considering the recent removal of five chief executives of banks followed by a N400 billion bailout by the Central Bank of Nigeria (CBN). Since the banking industry is the engine growth of any economy, failure in banks should not be allowed due to contagious nature of bank failures. Thus, this paper investigates into these causes and examines the different turnaround strategies that can be put in place to address such problems early enough for the purpose of taking remedial actions. This paper concludes that since turnaround strategy involves the reallocation of resources, the most commonly reallocated resource in the implementation of a turnaround strategy is management and therefore gives credence to the recent action of the CBN.

Building a Framework to Address Failure of Complex Global Financial Institutions

2009

The authors have both been involved over a number of years with the ongoing World Bank-International Monetary Fund Global Bank Insolvency Initiative and have benefited enormously from discussions with others around the world involved in the Initiative. The authors would also like to thank Elizabeth G. Chan and Raja Naach for research assistance and participants at seminars in Washington DC, Sydney and Zurich for input and comments. All opinions, errors and omissions are those of the authors, unless otherwise noted.

Making sense of the collapse of Barings Bank

Human Relations

We may usefully interrogate individual texts in order to expose them as exercises in power that serve hegemonic and legitimation functions. To illustrate this argument I analyse the account of the collapse of Barings Bank given in the Report of the Board of Banking Supervision, and juxtapose this with other versions of the events given by investigative journalists, Nicholas Leeson, and management scholars.The Report, I suggest, promulgates a public discourse myth designed to mitigate public anxieties, and is an explicit attempt to maintain and reproduce the legitimacy of the Bank of England, the City of London, and existing regulatory structures.

Corporate Failure and turnaround-libre

This paper is a theoretical exposition into the causes of bank failure and different strategies to turn ailing banks around. It is quite timely considering the recent removal of five chief executives of banks followed by a N400 billion bailout by the Central Bank of Nigeria (CBN). Since the banking industry is the engine growth of any economy, failure in banks should not be allowed due to contagious nature of bank failures. Thus, this paper investigates into these causes and examines the different turnaround strategies that can be put in place to address such problems early enough for the purpose of taking remedial actions. This paper concludes that since turnaround strategy involves the reallocation of resources, the most commonly reallocated resource in the implementation of a turnaround strategy is management and therefore gives credence to the recent action of the CBN.

Corporate Failure: Causes and Remedies

Corporate failure is of very important interest to economic, financial and corporate managers. Corporate failure could be seen in terms of the inability of a corporate organization to conform itself with its strategic path of growth and development to attain its economic and financial objectives as well as legal obligations. This paper has considered the factors that can cause corporate failure and its attendant inability to attain these objectives. Corporate organizations have been advised to establish research and development departments to continuously monitor their performance and to introduce effective ways by which they could satisfy their consumers and service their operating environments to effectively continue as going concerns.