Situation 1

Head of Development Division. Your bank is situated in a small provincial town. You were appointed to this post not so long ago but you are a young, energetic and enterprising person. You dream of running a branch bank and plan to open it in the neighborhood. Enact a meeting with your chief executive and try to persuade him into your idea. Organize the presentation of your plan, provide your reasons proving the benefits of this new branch for your bank.

Chief executive. You’ve been a chief executive for many years. You’re aware that the idea of your subordinate is not so bad and may even bring some advantages to your bank. But due to your character and temper structural (and any other) changes make you strain because you prefer the old conservative organization structure established many years ago. Being in doubt, try to provide your reasons and arguments against this innovation.

Situation 2

Vice-president. According to the strategy of your bank organization you plan to open a new branch in the Northern State not far from the Canadian border. You should organize a meeting with the Mayor of a northern town, persuade him that opening a new branch will be beneficial and discuss the details of this procedure.

The Mayor. You’ve got the proposal from the Vice-president concerning the opening of a new branch bank in your town. You’re in doubt because you have some pro and some contra arguments.

On the one hand the future new branch bank would provide 50 jobs and $ 1 million taxes per year for your town. Moreover the loans in amount of $ 50 million would flow into the town’s economy. Also this newly established bank may invest $ 10 million into municipal bonds.

On the other hand the Manphrad’s Law adopted by the Congress of the USA prohibits such branch bank opening in other cities. But you know that such practice takes place in the States of New-York and California where the Municipality provides charters and licenses for banking activity of such kind.

Brainstorming activity Problem 1

You are the owner of a bank. During last year the affairs in your bank were becoming worse and worse. The reason for it is not connected with the economic situation in your region (or country). You’ve got a proposal from a prominent and large bank to merge with your organization. You face the choice: either to be the vice-president of a newly born larger bank or to keep on fighting with problems and risk to become a bankrupt. What would you do?

Problem 2

The meeting of the Board of Directors is taking place in the bank. The vice-president who is responsible for the development of the organization is reporting. He says that the bank needs $ 100 million for the development and modernization of the bank network in the far away region. But the problem is that these branch offices are not profitable at the moment. However the increase of economic activity is expected in this region in three years. So these branch offices would be the most profitable for the bank. At the same time such unprofitable investment as $ 100 million may have negative effect on the financial stability of the bank. How to solve this problem?