Date of Award
Doctor of Education (Ded)
Professional Studies in Education
Robert E. Millward, Ed.D.
Joseph F. Marcoline, D.Ed.
David Piper, D.Ed.
Probably one of the most salient problems of the recent past was the 2008 global financial crisis. This crisis, which began in mid-September 2008, was thought by some to have been caused by the U.S. sub-prime mortgage industry collapse. The credit freeze which followed precipitated a chain of events that affected most organizations in the United States. Because of the size and scope of this problem, the U.S. federal government intervened and offered funding to select institutions in an effort to restore business credit and consumer confidence. Many institutions accepted this federal aid, but others did not. The focus of this study was an individual case of a rural commercial bank that did not accept Troubled Asset Relief Program (TARP) federal funding. This study examined Green Bank to determine if it is currently solvent according to federal standards. Green Bank is the fictitious name given to the real bank examined in this study. Comparison banks used in this study were also real and referred to as Bank A through Bank E. In addition to current solvency, other aspects of the operation were studied to see if the solvency condition was likely to persist. As such, two recent dissertations on commercial banking were referenced to form the basis of this study. The first dissertation was published in 2008 and investigated the relationship between organizational resources and organizational response to external shock. The study was entitled Organizational Response to Change: A Resource Based View from the Commercial Banking Industry. The second dissertation was published in 2006 and dealt with merger and acquisition activity of commercial banks. This study was entitled The Timely Positioning of Banks for Acquisition and Mergers. Results from this study provide keen insight into how an organization, in this case a commercial bank, deals with external changes of the magnitude caused by the current financial crisis. Final results could also form the basis of a strategic plan for commercial banks should something like this financial crisis ever happen again. On December 31, 2011, the President and CEO of Green Bank retired to pursue other opportunities (CEO Retires, 2012).
Kozyro, Dan, "A Case Study of Commercial Bank Solvency During a Global Financial Crisis" (2012). Theses and Dissertations. 859.