...THANKFUL To complete this research report, I want to give the sincere thankful to the teacher in Faculty of Banking and Finance of Industrial university of Ho Chi Minh City to create a change to me complete my training in during the time I study at class to the time I traing at Vietinbank Mien Trung agency. Specially, I want to give the sincere thankful to Miss. Nguyen Thi My Linh who always side by side and clear up and helping me complete my training. Thank to credit officer of the credit department at Vietinbank Mien Trung agency always introduce me during the time I training. Because my knowledge is limits so that I can not avoid the mistake, so that I want to hope the teacher will receive the opinion of the lecturer aim to my report is perfectly. Finally I wish the teacher in Faculty of Banking and Finance always have a good health, believe to can introduce and continuosly teach to next generations. Sincerely Ho Chi Minh city, March in 2014 Student Signature To Ngoc Thanh Phong COMMENTS OF VIETINBANK MIEN TRUNG AGENCY Ho Chi Minh city, ......, March , 2014 COMMENTS OF LECTURER Ho Chi Minh city, ......, March , 2014 Signature COMMENTS OF THE PRESENTATION LECTURER Ho Chi Minh...
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...40743, Abhilash Badami-40744, Lampros Baltas-40757 New Business Models: Peer-to-Peer (P2P) Lending Abstract: This paper evaluates the efficacy of the peer-to-peer lending model. While we primarily discuss the consumer loan market, the structure, principles and associated risks are fairly similar for other end markets as well. Contrary to popular opinion, empirical evidence from the limited available market data proves that P2P platforms do not have a lower cost as a percentage of loan receivables at this point compared to traditional banks. As these higher costs are primarily due to marketing activities, going forward, with scalability, they are poised to generate significant cost savings. Through our research, we conclude that P2P lending has a strong value proposition and the potential to disrupt the existing lending market, however, data quality, regulation and investor confidence will play a monumental role in determining the speed and magnitude of its success. What is peer-to-peer lending? Technological evolution, along with changing consumer behaviour, has led to a new era of innovation in financial services and subsequently more transparent and easy-to-use platforms. One of the new business models that has evolved, is peer-to-peer (P2P) lending. In essence, P2P lending is a form of debt financing which allows borrowers and lenders to bypass traditional banks. P2P platforms are sophisticated web-based platforms that significantly reduce the time needed...
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...A-LPM Comptroller of the Currency Administrator of National Banks Loan Portfolio Management Comptroller’s Handbook April 1998 A Assets Loan Portfolio Management Table of Contents 1 1 3 11 13 13 14 15 15 17 19 20 22 22 22 24 24 25 26 27 27 28 29 30 32 33 34 36 36 37 37 38 38 Introduction Overview Risks Associated with Lending Credit Culture and Risk Profile Loan Portfolio Objectives Strategic Planning for the Loan Portfolio Financial Goals Risk Tolerance Portfolio Risk and Reward The Loan Policy Loan Policy Topics Loan Approval Process Portfolio Management Oversight Risk Identification Exceptions to Policy, Procedures, and Underwriting Guidelines Documentation Exceptions Policy and Underwriting Exceptions Aggregate Exception Tracking and Reporting Portfolio Segmentation and Risk Diversification Identifying Concentrations of Risk Evaluating and Managing Concentrations of Risk Concentration Management Techniques Stress Testing Allowance for Loan and Lease Losses Credit Management Information Systems Collections and Work-out Lending Control Functions Independence Credit Policy Administration Loan Review Audit Administrative and Documentation Controls Comptroller’s Handbook i Loan Portfolio Management Communication with Senior Management and the Board Loan Portfolio Management Supervision Asset Quality Reviews Targeted Reviews Process Reviews Administrative and Documentation Reviews Compliance Reviews Follow-up Evaluations on Management Commitments...
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...by Vince Cable on the subject of bank lending, and what would happen if the Project Merlin targets are missed. The business secretary, as expected, issued vague threats about higher taxes. But then he added: "It is hard to imagine that we could penalise individual banks." Why? The Merlin agreement set a collective target for gross business lending by the big five banks (£190bn in total and £76bn to small and medium-sized companies) but it was always possible that some would pull their weight and some would not. So surely there ought to be a way to apply a whip to the laggards. But there is not. Nor, it appears, has the government nailed down the detail of the only sanction that was trumpeted by the chancellor at the time of February's agreement – a link between executive bonuses and lending targets. Cable is only now writing to banks' remuneration committees to ask how they intend to apply the principle. Merlin, as we suspected, was a badly drafted fudge. But, if the targets are missed, get ready for a repeat. The government will threaten higher taxes. The banks will protest that demand for lending is weak (and Bob Diamond got his retaliation in early when he said small businesses have £16bn on deposit at Barclays). Companies themselves will complain that the price of credit is too high. In the end, an equally unsatisfactory Merlin mark 2 may emerge. In the midst of these arguments, there will be no new thinking. How about allowing banks to create a hybrid debt/equity product...
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...1.1 Origin of the Report Bachelor of Business Administration (BBA) Course requires a three months attachment with an organization followed by a report assigned by the supervisor in the organization and endorsed by the faculty advisor. I took the opportunity to do my internship in BRAC Bank Limited at its Head office at Gulshan-1, Dhaka. Here I have conducted my study on “Credit Approval & Monitoring process of BRAC Bank Limited” with respect to Bangladesh Bank guidelines. My faculty supervisor Mr Khandaker Zahidul Alam, Assistant Professor of BRAC Business School, BRAC University, also approved the topic and authorized me to prepare this report as part of the fulfillment of internship requirement and gave me proper guidance and assistance over time. 1.2 Background of the Report Four years back, Bangladesh Bank undertook a project to review the global best practices in the banking sector and examines in the possibility of introducing these in the banking industry of Bangladesh. Four ‘Focus Groups’ were formed with participation from Nationalized Commercial Banks, Private Commercial Banks & Foreign Banks with representatives from the Bangladesh Bank as team coordinators to look into the practices of the best performing banks both at home and abroad. These focus groups identified and selected five core risk areas and produced a document that would be a basic risk management model for each of the five 'core' risk areas of banking. The five core risk areas are as...
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...Trends in Lending April 2015 BANK OF ENGLAND Trends in Lending April 2015 This quarterly publication presents the Bank of England’s assessment of the latest trends in lending to the UK economy. It draws mainly on long-established official data sources, such as the existing monetary and other financial statistics collected by the Bank that cover all monetary financial institutions, and data collections established following the onset of the financial crisis. These data are supplemented by discussions between the major UK lenders and Bank staff, giving staff a better understanding of the business developments driving the figures, and this intelligence is reflected in the report.(1) The major UK lenders(2) are Banco Santander, Barclays, HSBC, Lloyds Banking Group, Nationwide and Royal Bank of Scotland and together they accounted for around 70% of the stock of lending to businesses, 75% of the stock of mortgage lending, and 50% of the stock of consumer credit (excluding student loans) at end-December 2014. The report also draws on intelligence gathered by the Bank’s network of Agents and from market contacts, as well as the results of other surveys including the Bank of England’s Bank Liabilities Survey and Credit Conditions Survey.(3) The focus of the report is on lending, but broader credit market developments, such as those relating to capital market issuance, are discussed where relevant. The report covers data and intelligence gathered up to end-March 2015...
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...Spring 2013 ABSTRACT It can be seen that the Vietnamese economy in the first decade of the 21st century has a significant development in the banking sector. Commercial banks represent a big role in this development. The banks’ capital rose rapidly and became an important factor in Vietnamese economic growth. However, a negative side always follows the result of any growth. Expanding operation leads to debt rate increase in most commercial banks. Especially bad debts rate rose rapidly. Bad debts became a serious problem for the Vietnamese economy. When the amount of bad debts increases to a particular point, it will hinder the development as well as the operations of the banks. Due to this issue, controlling the bad debt rate is hard work for all commercial banks. There is no model of solution for all banks. According to specific characteristic of each bank, specific solutions to control bad debt rate are provided. However, those solutions seem to be not as effective as expected due to many reasons. When Vietnam became an official member of the World Trade Organization (WTO), the high bad debt rate brought many challenges. It reduced the banks’ core competency as well as customer trust. The objective of this thesis is evaluating credit risk management policies and investigating Australia and New Zealand (ANZ) Bank as a case study. Readers will get familiar with the risk management’s concepts in banking business, understand more about the...
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...without the use of money. Bank is an important and essential financial institution for the necessity of the use of money and the protection of the money. Bangladesh is now integral part of global market. As such there is an urgent requirement for Bangladesh to place the traditional banking pretties in harness with the global trades of a free market economy by following international Banking customs, practices and standards. Today clients of a bank in Bangladesh are exposed as well as interNational markets. They have to stay update with their practice and standards to meet the demands of achieving harmony in the high standards of a free economy. Rationale of the Study: Now a days banking sector have built up as the most important player of the economy. Economists have observed that loan is of the most important aspects of economic activity because of its great role in establishing various projects that generates production and thus generating employment. The only important aspect of loan is economic and social development in addition to achieving a suitable profit margin. Islamic banks consider loan as the basic motivation for community development and a means to get rid of social and economic problems through employment and operation of available resources, such as money and individuals. Especially after the financial crunch, Islamic banking and Islamic loan have proved to be more profitable and less risky. Since EXIM Bank is a Shariah based bank, the major portion of it...
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...1.0 PRELUDE: Financial stability is considered as the first condition of sustained and rapid economic progress. Among various indicators of financial stability, banks’ non-performing loan (NPL) assumes critical importance since it reflects on the asset quality, credit risk and efficiency in the allocation of resources to productive sectors. Nonperforming loans (NPLs) refer to those financial assets from which banks no longer receive interest and/or installment payments as scheduled. They are known as non-performing because the loan ceases to “perform” or generate income for the bank. Choudhury et al. (2002: 21-54) state that the nonperforming loan is not a “uniclass” but rather a “multiclass” concept, which means that NPLs can be classified into different varieties usually based on the “length of overdue” of the said loans. NPLs are viewed as a typical byproduct of financial crisis: they are not a main product of the lending function but rather an accidental occurrence of the lending process (Woo, 2000: 2). This is because NPLs can bring down investors’ confidence in the banking system. Only for a few defaulting borrowers, the banks suffer, depositors suffer, performing borrowers suffer, shareholders suffer, Government suffers and consequently economy and the people of the country suffer. The latest data reveal that in Bangladesh banking sector the amount of NPL is Tk 2572.65 crores (7.17% of total loans) up to September 2011. The ratio of NPL was as high as 41.1% in 1999,...
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...moratorium (i.e. course period, plus one year or six months after getting job, whichever is earlier) as prescribed under the Education Loan Scheme of the Indian Banks Association (IBA). 3. What is the procedure to avail the benefit of the Scheme? Answer. Student can avail the benefit of the Scheme by following the given procedure:i) ii) iii) iv) Student should have secured admission in the University Abroad for pursuing Post-graduate Diploma, Masters, M.Phil or Ph. D level courses with the overall family income of not more than Rs. 6.00 lakh per annum. Family income means gross parental income in case of unmarried students and gross income of spouse incase of married students. Student should have to take the loan from any Private Bank, Public Sector Bank, Scheduled commercial Bank and member urban Cooperative Banks etc. who is a member of Indian Banks Association. Student should have the proof of belonging to a minority community (details at Q. No. 10). Student should inform their lending Banks that Ministry of Minority Affairs has launched a new Scheme of Padho Pardesh – interest subsidy on educational loans for pursuing higher studies abroad and he/she is eligible under that particular Scheme. Then the lending Bank will feed the students information into the Portal of Padho Pardesh launched by Canara Bank which is the implementing Agency of this Scheme. The Portal will remain open for the period of two month...
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...evaluation of National Bank Limited” Chapter – 01 Introduction OF THE REPORT 1.1 Introduction National bank limited (NBL) is a full service scheduled commercial bank. It has both local and International Institutional Shareholder. The bank is primarily driven with a view of creating opportunities and pursuing market niches not traditionally meet by conventional banks. National Bank has been motivated to provide “best-in-the-class” services to its diverse assortment of customers spread across the country under an on-line banking dais. Today, National Bank is one of the fastest growing banks in the country. In order to support the planned growth of its distribution, network and its various business segments, National Bank is currently looking for impressive goal oriented, enthusiastic, individuals for various business operations. The bank wants to build a profitable and socially responsible financial institution. It carefully listen to the market and business potentials, It is also assisting stakeholders to build a progressive, healthy, democratic and poverty free Bangladesh. It helps make communities and economy of the country stronger and to help people achieve their financial goals. The bank maintains a high level of standards in everything for our customers, our shareholders, our acquaintances and our communities upon, which the future affluence of our company rests. Risk is inherent in all aspects of a commercial operation. However, for Banks and financial institutions...
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... 1.1 Origin: The report is a requirement for the completion of Internship under BBA Program. 1.2 Scope: The report title is “An Overview of Credit Management by Sonali Bank Limited”. This report is based on study carried out on Credit management of Sonali Bank Limited using both qualitative and quantitative methods. The aim of the study is to find out the credit control system performed by Sonali Bank Ltd. The scope of this report is limited to the overall description of the company, its services and its financial performance analysis. The scope of the study is limited to credit management, functions, and performances. The report will mainly focus on SBL’s credit offer and is control and management. 1.3 Objectives of the report: The purposes of this report relates with the internship. The internship objective is to gather practical knowledge and experiencing the corporate working environment. To this regard this report is contemplating the knowledge and experience accumulated from internship program.. The objectives behind the construction of this report are: To know the practical implication of credit management. To have an in depth knowledge of Credit management procedure of Sonali Bank Limited. To justify how a bank effectively employ procedures to judge creditworthiness of prospective and existing borrower. To differentiate between practical and theoretical learning To observe the performance of the bank over a certain time period 1.4...
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...Introduction In general sense we mean “Bank” as a financial institution that deals with money. But when we use the term bank it generally means ‘commercial bank’ that collects the deposit from surplus unit of the society and then lends the deposits to the deficit units of the society. The word ‘Bank’ was probably derived from the word ‘Bench’s during ancient time Jews used to do money –lending business sitting on long benched. First modern banking was introduced in 1668 in Stockholm as ‘savings bank’, which opened up a new era of banking activities throughout the European Mainland. In the north Asia region, the afghan traders popularly known as Kabliwallas introduced early banking system. Muslim businessmen from Kabul, Afghanistan came to India and started money lending business in exchange of interest sometime in 1312A.D, they were known as Kabliwallas. All over the world the dimension of Banking has been changing rapidly due to Deregulation, Technological innovation and Globalization. Banking in Bangladesh has to keep pace with the global change. Now Banks must compete in the market place both with local institution as well as foreign ones. To survive and thrive in such a competitive banking world, two important requirements are Development of appropriate financial infrastructure by the central bank and Development of "professionalism" in the sense of developing an appropriate manpower structure and its expertise and experience. To introduce skilled...
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...REPORT ON CREDIT OPERATIONS SYSTEM IN THE PRIME BANK LIMITED PREPARED FOR M. MUZAHIDUL ISLAM ASSOCIATE PROFESSOR DEPARTMENT OF BANKING UNIVERSITY OF DHAKA PREPARED BY NIPA SAHA ROLL-423, MBA 1ST BATCH DATE OF SUBMISSION: MAY 10, 2006 DEPARTMENT OF BANKING UNIVERSITY OF DHAKA Supervisor's Certificate This is to certify that the Internship Report on "Prime Bank Ltd." in the bona fide record at the report is done by Nipa Saha as a partial fulfillment of the requirement of Masters of Business Administration (MBA) degree from the Department of Banking, University of Dhaka. -------------------------------------- Signature of Supervisor ---------------------------------- Date. Declaration I do hereby solemnly declare that the work presented in this Internship Report has been carried out by me has not been previously submitted to any other University/ College/ Organization for an academic qualification / Certificate / Diploma or degree. The work I have presented does not breach any existing copyright and no portion of this report is copied from any work done earlier for a degree or otherwise. I, further undertake to indemnity the department against any loss or damage arising from breach of foregoing obligation. -----------------------------------...
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...close to 70% of the labor force in the manufacturing industry, services, and trade. Their share in manufacturing value addition is estimated to be around 35%. Small & medium businesses play a very critical role when economies are transiting from low to middle income levels yet Pakistan has paid less attention to the growth and development of this crucial pillar of economy. Our report mainly focuses on the financial constraint to growth of this sector. Capital requirements: According to SMEDA there’re 800,000 SMEs in Pakistan that are eligible for bank loans. Another 2.4 million potential businesses that can’t qualify for bank loans mainly rely on other sources of finance for their business needs. Approximately 89% of working capital and 75% of fixed investments are financed from retained earnings. (See exhibit 1-B) Remaining financing needs are fulfilled from external sources which include family and friends, bank loans and other small sources as depicted in exhibit 2-A. Despite the importance of SMEs in the economy, as of December 2007 fewer than 200,000 borrow from the banking sector and SME lending volumes (that is, loans of up to Rs 75 million) account only for 16% of total credit. ADB survey results show that that there is a particularly acute financing gap for loan sizes between Rs 100,000 (the maximum loan size that microfinance institutions (MFIs) can offer) and...
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