...us to explore environments where we work or live, and assess the results of decisions made by management of several Community Banks. I have witnessed several banks grow and go through a number of changes, in policy, employees and culture. I have witnessed banks with similar number of employees, start-up capital and management expertise perform very differently. This paper will search and comment on why performance of similar institutions can be result of management decisions. Lastly, we will attempt to identify those trends and comment to alternate decision making that could have had different results. A quick preview over the last 10 years indicates our nation has witnessed a tremendous increase in failed banks. As with the Great Depression of 1930, the 2008 demise caught even seasoned professionals by surprise! They seemed like smart, financial leaders who were well educated and fully integrated into the heartbeat of the banking system… boy were they wrong… Banks as old as 100 years, fell within months! Although the pace has slowed, they still are failing at levels that can decimate local economies. In 2005 and 2006 there were no bank failures in USA! Was it power bases that gave a false sense of security? Was it poor management? Was it more? THE CULTURE OF CIRCLE BANK With...
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...enables the country to maintain a stable external value of taka. With the integration of global economy, the financial sector of Bangladesh requires diversified and innovative financial products, derivative instruments and other creative banking. NRBs may play a pivotal role in the further augmentation of the financial sector by extending their valuable contribution. Bangladesh Bank has decided in principle to grant license to a new banking company to be set up by NRBs in pursuant to section 31 of the Banking Companies Act, 1991 of Bangladesh after considering the need and overall strategy congenial to effective monetary and financial sector policy for the country. Terms and conditions for the establishment of NRB bank are as follows: 1. Status of the NRB Bank 1.1 Must be a public limited company incorporated in Bangladesh. 2. Paid up capital requirement 2.1 The paid up capital of an NRB bank shall be not less than money equivalent to BDT 400.00 Crore. The share capital will be formed with ordinary shares only. 3. Mode of payment 3.1 The capital contribution made by the NRB sponsors of the proposed bank shall be in a liquid, unencumbered form. 3.2 The contributed money has to be remitted through the banking channel and shall be deposited with any banking company in Bangladesh. 4. Sponsors and share capital contribution 4.1 Shareholding of the NRB bank shall be as follows: • • Sponsors Public Offer : 50% : 50% 4.2 All the sponsors must be NRBs. 4.3 A sponsor may be an individual person...
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...and in The New England Now accounts were also offered to the individuals and non-profit organizations. In Massachusetts and New Hampshire Mutual banks were able to offer NOW accounts for 50 months, commercial banks had it for 30 months and all other financial institutions were able to offer it for only 6 months. The main issue was to use the correct marketing strategies, first one was not to use NOW accounts at all, use it for free and use it with some fees. Many small banks had already started to offer NOW accounts and had very competitive prices. While RNB had not started to offer NOW accounts and still was one of the leaders of the Dallas banking market. As I have mentioned before there were couple of alternatives of offering now accounts to customers. The first one would be not to offer the now accounts at all. RNB has an alternate account like Starpak, which could be used as a substitute for NOW accounts. Starpak offers free checking account and some other services which are...
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...of international banking cooperation. Through quantitative and technical benchmarks, both accords have helped harmonize banking supervision, regulation, and capital adequacy standards across the eleven countries of the Basel Group and many other emerging market economies. On the other hand, the very strength of both accords—their quantitative and technical focus—limits the understanding of these agreements within policy circles, causing them to be misinterpreted and misused in many of the world’s political economies. Moreover, even when the Basel accords have been applied accurately and fully, neither agreement has secured long-term stability within a country’s banking sector. Therefore, a full understanding of the rules, intentions, and shortcomings of Basel I and II is essential to assessing their impact on the international financial system. This paper aims to do just that—give a detailed, non-technical assessment of both Basel I and Basel II, and for both developed and emerging markets, show the status, intentions, criticisms, and implications of each accord. Basel I Soon after the creation of the Basel Committee, its eleven member states (known as the G-10) began to discuss a formal standard to ensure the proper capitalization of internationally active banks. During the 1970s and 80s, some international banks were able to “skirt” regulatory authorities by exploiting the inherent geographical limits of national banking legislation. Moreover...
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...A PROJECT REPORT ON “WHOLE SALE BANKING OPERATIONS” IN AXIS BANK SUBMITTED TO ANNAMALAI UNIVERSITY IN PARTIAL FULFILLMENT FOR DEGREE OF M.B.A. (BUSINESS APPLICATION) For the Academic year 2008-2010 Submitted by: Miss. SHILPA S. UPADHYAY Under the Guidance of Miss. RIDDHI DESHPANDE CENTUM LEARNING CENTRE, SHANKAR NAGAR, NAGPUR AFFILIATED BY ANNAMALAI UNIVERSITY, CHENNAI CENTUM LEARNING CENTER, NAGPUR AFFILIATED BY ANNAMALAI UNIVERSITY, CHENNAI CERTIFICATE This is to certify that this project titled “WHOLE BANKING OPERATIONS” is a bonafied work carried out and developed by SHILPA S. UPADHYAY in partial fulfillment for the award of degree of MASTERS OF BUSINESS ADMINISTRATION. During the academic session 2008-2010, submitted to Annamalai University, Tamil Nadu under my guidance and supervision. This is also to certify that this project is the result of candidates own work and is of sufficiently high standard to warrant its submission to the university for the award of the said degree. To the best of my knowledge the matter presented in this project report has not been submitted earlier for any other degree/diploma to any university. The assistance and help rendered to him during the course of his project work in the form of basic source material and information have been duly acknowledged. Ms. Riddhi Deshpande (Project Guide) Nagpur) Mr. Sanjay Choure (Director, CLC, CENTUM LEARNING CENTER, NAGPUR AFFILIATED BY ANNAMALAI UNIVERSITY, CHENNAI ...
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...RISK MANAGEMENT DEFINITION OF RISK: 1. Risk in finance is defined in terms of the variability of actual returns on an investment, around an expected return, even when those returns represent positive outcomes. 2. The decisions on how much risk to take and what type of risks to take are critical to the success of the business. 3. The essence of good management is making the right choices when it comes to dealing with different risks. 4. In banking, the risk is the possibility that a borrower or counterparty will fail to meet its obligations in accordance with the agreed terms, both in terms of time and quantity. 5. Risk does not come alone – the default of one firm may cripple affiliated firms such as suppliers, customers and banks. RISK MANAGEMENT: 1. Risk Management is a planned method of dealing with the potential loss or damage. It is an ongoing process of risk appraisal through various methods and tools. 2. Risk Management involves not only to protect oneself against some risks but also to decide which risks are to be exploited and how to exploit them. 3. Risk Management covers credit decision making, performance assessment, pricing, capital computation, provisioning etc. 4. Risk Management covers the following: a. It assesses what could go wrong b. It determines which risks are important to be dealt with c. It implements strategies to deal with those risks. 5. Risk Management is not – ...
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...College of Agricultural Banking & Institute for Financial Management and Research Centre for Micro Finance December 2008 Cost –Benefit and Usage Behaviour Analysis of No Frills Accounts: A Study Report on Cuddalore District S. Thyagarajan Jayaram Venkatesan S. Thyagarajan is a Member of Faculty at the College of Agricultural Banking, Reserve Bank of India, Pune (http://cab.org.in). Jayaram Venkatesan is a Research Consultant at the Centre for Microfinance (http://ifmr.ac.in/cmf/). The views expressed in this paper are entirely those of the authors and do not in anyway reflect the views of the institutions with which they are associated. S. Thyagarajan & Jayaram Venkatesan: Cost –Benefit & Usage Behaviour Analysis of No Frills Accounts Contents Acknowledgements............................................................................................................. 3 Executive Summary ............................................................................................................ 4 Introduction......................................................................................................................... 5 1. Literature Review............................................................................................................ 7 1.1 Notable Indian Initiatives.......................................................................................... 8 2: Financial Inclusion Project .....................................................
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...LITERATURE REVIEW In the article “Credit Risk Rating at Large U.S. Banks” authors William F. Treacy and Mark S. Care say that risk ratings are the primary summary indicator of risk for banks’ individual credit exposures. They both shape and reflect the nature of credit decisions that banks make daily. The specifics of internal rating system architecture and operation differ substantially across banks. The number of grades and the risk associated with each grade vary across institutions, as do decisions about who assigns ratings and about the manner in which rating assignments are reviewed. In general, in designing rating systems, bank management must weigh numerous considerations, including cost, efficiency of information gathering, consistency of ratings produced, staff incentives, the nature of the bank’s business, and the uses to be made of internal ratings. RATINGS MIGRATION SYSTEM An Internal Ratings Migration Study by Michel Araten, Michael Jacobs Jr., Peeyush Varshney, and Claude R. Pellegrino-- This article discusses issues in evaluating banks’ internal ratings of borrowers. Ratings migration analysis entails the actuarial estimation of transition probabilities for obligor credit risk ratings, with emphasis on estimation of empirical default probabilities. Measurement of changes in borrower credit quality over time is important as obligor risk ratings are a key component of a bank’s credit capital methodology. These analyses permit banks to more accurately assess...
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...Basel Committee on Banking Supervision International Convergence of Capital Measurement and Capital Standards A Revised Framework Comprehensive Version This document is a compilation of the June 2004 Basel II Framework, the elements of the 1988 Accord that were not revised during the Basel II process, the 1996 Amendment to the Capital Accord to Incorporate Market Risks, and the 2005 paper on the Application of Basel II to Trading Activities and the Treatment of Double Default Effects. No new elements have been introduced in this compilation. June 2006 Requests for copies of publications, or for additions/changes to the mailing list, should be sent to: Bank for International Settlements Press & Communications CH-4002 Basel, Switzerland E-mail: publications@bis.org Fax: +41 61 280 9100 and +41 61 280 8100 © Bank for International Settlements 2006. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. ISBN print: 92-9131-720-9 ISBN web: 92-9197-720-9 Contents Introduction ...............................................................................................................................1 Structure of this document........................................................................................................6 Part 1: Scope of Application .....................................................................................................7 I. Introduction.....................
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...Institute of Banking Personnel Selection COMMON WRITTEN EXAMINATION [CWE] FOR RECRUITMENT OF PROBATIONARY OFFICERS/ MANAGEMENT TRAINEES IN 19 PUBLIC SECTOR BANKS Email: common@ibpsorg.org Website: www.ibps.in As a gateway to the ever growing demand for qualified candidates for employment in the 19 Public Sector Banks, on whose behalf CWE is conducted by IBPS, here is the next opportunity for aspiring candidates. The 2nd Common Written Examination (CWE-PO/ MT-II) will be conducted by the Institute of Banking Personnel Selection (IBPS) as a pre-requisite for selection of personnel for Probationary Officer/ Management Trainee posts in the Public Sector Banks mentioned below. This system of Common Written Examination for recruitment of Probationary Officers/ Management Trainees has been approved by the Government of India, has the consent of the Boards of each of the participating Banks and the Managing Committee of the Indian Banks’ Association (IBA). IBPS, an autonomous body, has been authorised by IBA and has received a mandate from the 19 Public Sector Banks listed below to conduct the Common Written Examination. The CWE for Probationary Officer/ Management Trainee posts will be conducted twice a year by IBPS. A PARTICIPATING BANKS Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab National Bank Punjab & Sind Bank Syndicate...
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...Along with the usual movie trailers, press junkets and reputation generated hype generated by the name Stephen Spielberg, 2001's Artificial Intelligence: AI was propelled forward into one of the largest multimedia marketed films. The majority of the buzz surrounding this film was created by the viral marketing plan of using Internet surfers and the online gaming community. Warner Brothers spent over $1 million on the game project. Users could sign on and play a highly interactive and intricate murder mystery. It required users to have a broad knowledge of history, mathematics, sciences and other subjects. Gamers created online "communities" to play the game. Faxes and phone calls and emails would be sent from "Mother" as clues to help users solve the game. Though the game was specifically designed for the most experienced and dedicated science fiction online community, movie makers wanted to draw in that specific audience as research had proven that that particular audience wouldn't have responded favorably to AI, because it would've been seen as too mainstream. As more buzz was generated more and more everyday users would log on and search on Google for names such as "evan chan" or "jeaninne sallis" and enter into the labyrinth that is the game. As more and more buzz was generated, an undercurrent of anti-buzz was created. Sites dedicated to urging users to stop playing the game and face the truth popped up. But in the business of disseminating information and creating...
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... In Canada recession was less severe and they face no banking failure due to the size and diversification in their large institution has maintained their stability. New Entrant was limited by Canadian government and I exchange chartered bank with provide them financial stability, in Canada focuses on banking sector that’s why brokers dealers and security market remain much at smaller .The banking system of branch was oliogiopolisty that imply the system which has limited supply of banking services and cost as compared to their competitors . In our previous work (Bordo et al., 1994) we analyzed that the Canadian banking is not categorized in higher cost as compared to US. The banking of Canada same returns on equity and largely used MMMFSs After 1987 they became a vital part of Canada banking, at that time government had given them permission to create MMMFs and half of total MMMFs are kept at bank which means that they are within the banking system. According to (Byung kyong & Niamh Sheridan,2012) Canada’s three large bank weighted average is two an half time smaller than Australia’s four major banks however non performing rate of housing loans in Australia and Canada are almost same in recent years. The mortgages in Canada are provided by Canada mortgage and Housing Corporation own by Government are assigned at weight of zero risk, therefore the lowest risk of residential mortgages of four large Canadian banking is almost 70% in comparison with 40% of major Australian...
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...I. EXECUTIVE SUMMARY The project brings out various aspects of working capital management and the means to get it financed from banks. It starts with explanation of the concept of working capital, description of working capital cycle, management and financing of working capital. This is supplemented by a brief explanation of the working capital financing of M/s Paras Organics Private Limited. It should be noted that business transactions are generally carried on credit with a number of days elapsing subsequent to the sale being affected for realization of sale proceeds. While part of the raw materials may be purchased on credit, the business would still need to pay its employees, meet manufacturing and selling expenses such as wages, power, suppliers, transportation and communication and the balance of its raw material purchases. Working capital refers to the source of financing required by business on a continual basis for meeting these needs. The faster a business expands, the more cash it will need for working capital investment. The cheapest and best sources of cash exist as working capital right within the business. Sound management of working capital will generate cash which will improve profits and reduce risks. The cost of providing credit to customers and holding inventories can represent substantial proportion of the total profits of a firm. The investment in raw materials, work-in-progress, finished goods and receivables often varies a great deal during the...
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...Cumulative Bank Services and Balance In the world of banking, it is often speculated that the more accounts and services a client holds with a particular financial institution, the longer they will stay with that bank. The idea is, the more accounts they open for each client, the more dependent these clients will become to their services, and closing several accounts to join another institution requires time and effort. Avoiding these tedious tasks will manipulate a client to stay with the given financial institution longer as well as prompting them to maintain majority of their funds under the same roof. There are many studies conducted to prove this scenario that is the reason why the “cross-selling” technique has been adopted by the banking industries. The ultimate goal is clear, and all financial institutions believe that “those who die with the most money win”. Whether or not these techniques create a false sense of loyalty, the question is: Does account balance exhibit any correlation to the number of services a client holds with the bank? Numbers don’t lie, we will explore and evaluate this hypothesis using statistics and data sets from Century National Bank to prove whether or not this idea holds true. Hypothesis Statement “Does account balance exhibit any correlation to the number of services a client holds with the bank?" The banking industry as a whole has changed over the past decade in which customer are able to use technology to update account information, view...
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...14 1.0 : Introduction Zenith Bank Nigeria Plc was founded in May 1990 with the headquarters in Victoria Island, Lagos State Nigeria under the management of Macaulay Pepple, who was the pioneer chairman and Jim Ovia, who was the chief executive officer (ZenithBank.com). However, they are rated the second biggest Finance Industry in Nigeria and the best bank for a consistent 2 year period from 2008-2010 as well as the most respected bank in Nigeria (ZenithBank.com). Since 1990, Zenith Bank has operated in Nigeria and now operates in five other African countries in addition to the United Kingdom. It offers varied financial services such as current account, savings, commercial letter of credit, credit cards, mortgage, loan,investment banking and other financial products and services (ZenithBank.com). For several years, Zenith Bank has consistently announced profits from its wide ranging operations as a result of the growing opportunity offered by the Nigerian market. Nigeria is a nation of 150 million people with less than 50% bankable population as of 2000 (CBN, 2010). In 2010, over 65% of the population have become customers to one bank or another, thus presenting a growth opportunity for financial institutions such as Zenith (naijalowa.com). While the Nigerian market holds tremendous opportunity for existing operators like Zenith, the financial industry in the country is driven by a range of macro-economic factors which holds both positive and negative implications for the...
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