Riverview Community Bank: Case Study
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Corporate social responsibility proposal for Riverview Community Bank
Disclaimer: I am neither an employee of RVSB nor affiliated in any way with them nor do I own any of their stock.
Corporate social responsibility (CSR) has been a buzz phrase since the 1970’s. The Harvard Kennedy School defines CSR as something that “…addresses how companies manage their economic, social, and environmental impacts, as well as their relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm.” (Corporate Social Responsibility Initiative, 2008) In an article on the website “As You Sow” early CSR attempts are described as primarily philanthropic and consisted of giving …show more content…
Based on my research on www.linkedin.com RVSB currently has 16 employees working as mortgage loan officers. (Linkedin.com, 2014) I briefly compared these numbers with Columbia Credit Union another local bank that currently has 560 employees, with 10 percent of them being mortgage loan officers. (Linkedin.com, 2014) The mortgage market can be extremely lucrative and provide stability to the financial institution during times when consumers might not want to deposit their money in saving accounts or play the stock market to receive higher returns. My recommendation is to increase the number of loan officer to 10 percent of its total …show more content…
Currently, RVS’s capital level is at 16.7 percent. Capital levels in banks are defined as “…is the amount of capital a bank or other financial institution has to hold as required by its financial regulator.” (Wikipedia, 2014) One of the main reasons some banks went into default during the 2008 crisis were insufficient capital levels. By upping the capital level RVSB will increase its financial stability and allow it to weather future economic crises. (Jochen Schanz) Increasing capital level does not necessarily mean that RVSB would have to cut down on their lending activities. Instead retained earning could be used and RVSB could reduce the dividends that are paid out to shareholders. Currently RVSB annualized dividend is $0.18 cents. (NASDAQ,
Corporate social responsibility proposal for Riverview Community Bank
Disclaimer: I am neither an employee of RVSB nor affiliated in any way with them nor do I own any of their stock.
Corporate social responsibility (CSR) has been a buzz phrase since the 1970’s. The Harvard Kennedy School defines CSR as something that “…addresses how companies manage their economic, social, and environmental impacts, as well as their relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm.” (Corporate Social Responsibility Initiative, 2008) In an article on the website “As You Sow” early CSR attempts are described as primarily philanthropic and consisted of giving …show more content…
Based on my research on www.linkedin.com RVSB currently has 16 employees working as mortgage loan officers. (Linkedin.com, 2014) I briefly compared these numbers with Columbia Credit Union another local bank that currently has 560 employees, with 10 percent of them being mortgage loan officers. (Linkedin.com, 2014) The mortgage market can be extremely lucrative and provide stability to the financial institution during times when consumers might not want to deposit their money in saving accounts or play the stock market to receive higher returns. My recommendation is to increase the number of loan officer to 10 percent of its total …show more content…
Currently, RVS’s capital level is at 16.7 percent. Capital levels in banks are defined as “…is the amount of capital a bank or other financial institution has to hold as required by its financial regulator.” (Wikipedia, 2014) One of the main reasons some banks went into default during the 2008 crisis were insufficient capital levels. By upping the capital level RVSB will increase its financial stability and allow it to weather future economic crises. (Jochen Schanz) Increasing capital level does not necessarily mean that RVSB would have to cut down on their lending activities. Instead retained earning could be used and RVSB could reduce the dividends that are paid out to shareholders. Currently RVSB annualized dividend is $0.18 cents. (NASDAQ,