The Fall of Barings Bank

Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

To download The Fall of Barings Bank case study (Case Code: FINC025) click on the button below, and select the case from the list of available cases:

Finance Case Studies
Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Case Studies by Area
Case Studies by Industry
Case Studies by Company

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : FINC025 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Corporate scams / Controversies
Case Length : 11 Pages
Period : 1992 - 2003
Pub. Date : 2004
Teaching Note : Not Available
Organization : Barings Bank
Industry : Banking and Financial Services
Countries : UK


The case discusses how Nicholas William Leeson's (Leeson) unauthorized trading in derivatives led to the fall of Barings Bank, the oldest and one of the most reputed banks in the UK.

It describes the complete sequence of events leading to the fall of the bank.

The case also highlights the reasons for the fall, including the lack of proper managerial supervision and operational control systems, and the mismanagement of the bank's derivatives operations.


The reasons that led to the fall of Barings Bank

Importance of proper supervision and control systems in a bank to mitigate risks


  Page No.
Introduction 1
Background Note 2
Events Leading to the Fall 2
Why Did it Happen? 5
The End Result 7
Exhibits 9


Nicholas William Leeson's, unauthorized trading, derivatives, Barings Bank, UK, managerial supervision, operational control systems, mismanagement, derivatives operations

The Fall of Barings Bank - Next Page>>


Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.