Bank of Bahrain Collapse of Bank of Bahrain

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In the case of the failure of the Bank of Bahrain, the main cause was operational risk. "The main cause of the failure of the Bank of Bahrain is operational risk. In the case of the Bank of Bahrain, there are serious deficiencies in the bank's internal management processes.

What are the main causes of the failure of the Bank of Bahrain?

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In the case of the failure of the Bank of Bahrain, the main cause was operational risk. "The main cause of the failure of the Bank of Bahrain is operational risk. In the case of the Bank of Bahrain, there are serious deficiencies in the bank's internal management processes.

The following is a related extension that I hope you will find helpful: The main cause of the failure of the Bank of Bahrain is operational risk. In the case of the Bank of Bahrain, there are serious flaws in the bank's internal management process, allowing the front office staff to serve as the rear risk control post at the same time, in this case, a front desk staff is both an athlete and a referee, calmly concealing the transaction loss, and the bank headquarters is not aware of it, such an operational risk leads to market risk, which in turn leads to the credit risk of the Bank of Bahrain, and eventually collapses.

On February 27, 1995, the British ** Bank announced that the British commercial investment bank, the Bank of Baring, had collapsed due to operational errors. The news immediately caused a series of strong fluctuations in the financial community in Asia, Europe and the Americas. The exchange rate of the British pound against the mark in Tokyo fell to a two-year low, and the exchange rate of the British pound against the mark fell in London**, and the Dow Jones index in New York fell by 29 percentage points.

The Bank of Bahrain Group was once the oldest and most prestigious commercial banking group in London, England, known for its steady development and good reputation, and its customers were mostly noble, and Queen Elizabeth II was once one of its customers. The Baring Bank Group's expertise is in corporate finance and investment management, with a presence in emerging countries and regions in Asia and Latin America. In 1994, the pre-tax profit of the Bank of Bahrain was still high at 100 million US dollars, and the bank was looking to expand its business in China.

However, a financial speculation the following year completely crushed all of the bank's development plans. The immediate cause of the bankruptcy of the Bank of Bahrain in Singapore was that Nick Lisson, the manager of the Singapore Bahrain company, misjudged the direction of Japan**. In January 1995, when the Japanese economy showed a recovery momentum, Lissen was optimistic about Japan, and bought a large number of ** contracts in Tokyo and Osaka, hoping to make large profits when the Nikkei index rose.

On January 17, 1995, the sudden Japanese Hanshin ** hit the rebound momentum of Japan**, and the stock price continued to **, and the Bank of Bahrain lost as much as 1.4 billion US dollars, which was almost all the assets of the Bank of Bahrain at that time, and this once glorious financial edifice collapsed.

The transactions on the account can be concealed because of the fact that they are also responsible for the clearance, but the additional margin cannot be hidden.

On January 18, 1995, Japan's Kobe Dai**, and in the following days, the Tokyo Nikkei Index was sharply**, and Lisson suffered greater losses on the one hand, and on the other hand, he bought a larger number of Nikkei Index** contracts, hoping that the Nikkei Index would **reach the ideal range**. On January 30, Reeson received funds from London at a rate of £10 million a day, bought 30,000 Nikkei** and shorted Japan** bonds.

On February 23, 1995, the last day in Bahrain**, Lisson's efforts to influence the direction of the market failed completely. Nikkei's stock price fell to 17,885 points, and Lisson's Nikkei** long risk position has reached more than 60,000 contracts; While its Japanese bonds are on the rise, its short risk position has reached 26,000 contracts. The loss that Lisson brought to Bahrain finally reached a high of 86000000 pounds when Bahrain's senior executives were still dreaming of next-day dividends, causing the fate of the world's oldest Bahraini bank.

Banks are going to collapse after all, so transfer assets quickly, invest in industry, or **, but you can't deposit in the bank!