個案資料

During the summer of 1998, Bob Aston and his partners, all bankers, spent many days discussing their plans to start a bank in southeastern Virginia, United States. Deregulation was transforming the banking industry. In Virginia, mergers and acquisitions in the industry had led to the emergence of large banks that had headquarters in other states. Aston felt that banking as he knew it was disappearing. However, before they could start a bank, Aston and his partners faced many questions and decisions: How would they raise the capital? Who would the bank serve? How would they compete with the larger banks that had emerged due to the deregulation? <br><br><br><br>The decisions they made at the founding had a lasting effect on TowneBank. This became evident a decade later as financial institutions around the country experienced a severe crisis that was triggered by exposure to risky mortgages, while TowneBank remained relatively unscathed. However, the management team had to consider several issues as the crisis unfolded. Should they accept the Troubled Asset Relief Program (TARP) funds that the U.S. Treasury had offered to banks (even those that were unlikely to fail and were adequately capitalized)? How could they ensure TowneBank’s growth? Should they acquire distressed banks in the local market?

This case has several objectives. It intends to illustrate to students the following issues:<ul><li>Periods of change in industry environments create opportunities for entrepreneurs. The case illustrates how deregulation in the banking industry led to changes in the industry structure that created an opportunity for Aston to launch a bank. </li><li>Entrepreneurs are often driven by values, vision, passion, and a sense of purpose — these factors may even influence their perception of risk. Aston felt compelled to launch a bank in an industry dominated by several large incumbents because of his belief in old-fashioned customer-focused banking that was rooted in the community.</li><li>Several decisions need to be made at the founding stage of an enterprise under uncertainty. The case notes that under these conditions, Aston’s vision and values guided his decisions about funding, strategy, and structure.</li><li>Small businesses with clear business and corporate strategies that are supported by the right set of capabilities can thrive against larger rivals. Aston’s choice of strategy (and its implementation) enabled TowneBank to compete effectively in a market dominated by larger incumbents.</li><li>During a crisis, executives may have to make decisions without complete information, and, in such instances, individual values play an important role in the decision.</li>

• Banking Deregulation
• Bank Founding
• 2008 Financial Crisis
• TARP
• United States