CAPITAL ADEQUACY FRAMEWORK AND RISK MANAGEMENT IN BANKS GUEST LECTURE: MR. R M PATTANAIK EX GM- INDIAN OVERSEAS BANK CAPITAL ADEQUACY RATIO (CAR) Also known as Capital to Risk (Weighted) Assets Ratio (CRAR) is the ratio of a bank’s capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory capital requirements. It is a measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted
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QUESTION 1 ( MARKS ) Compensation balances are frequently a part of revolving lending arrangements with banks, yet they add to the cost of financing for the borrower. Why, then, borrowers agree to such terms? What other types of alternative financing are available? The borrowers agree to such terms because they use the compensating balance to pay for non credit bank sources such as cash management services must major firms have now negotiated for banks to use the corporations collected funds
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ACFI 2005 Finance. 3. A customer has approached your commercial bank seeking to invest funds for a period of six months. The customer is particularly worried about risk following the GFC and the market volatility that continues to characterise world financial markets. Explain the features of call deposits, term deposits and CDs to the customer and provide advice on risk-reward trade-offs that might be associated with each product. Answer: Commercial banks are the main type of financial institution
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UNIQUE BANKING MODEL UNIQUE BANKING MODEL LOGO PUNCHLINE FEATURES SERVICES FOR YOUTH MINIMUM CAPITALREQUIREMENT LOGO PUNCHLINE FEATURES SERVICES FOR YOUTH MINIMUM CAPITALREQUIREMENT FEATURES Youth bank is banking service for children, aged up to 18 years, to help the parents meet the present and future aspirations that they hold for their child. It offers various savings and investment options to the parent along with teaching the child to manage his/her personal finance in a
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to help their clients out any way that they can. Old National Bank has one hundred and seventy locations in four states: Indiana, Illinois, Kentucky and Ohio with their headquarters located in Evansville, Indiana. Old National has a great online banking system. The site is very easy to navigate with many tutorials and demos provided. Under the business tab I am able to find out information regarding receivables, payables, information and money management along with fraud protection. Under each of
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1. Identify five cultural, social, personal or psychological characteristics (shown in Chapter 5, Figure 5.2) that would affect a person becoming a customer of Umpqua Bank There are more than five characteristics that I noticed but the five that I feel are important are reference groups, lifestyle, personality and self-concept, perception, and beliefs and attitudes. There are large numbers of companies that have become popular because of references given to potential customers by satisfied customers
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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
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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
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to energy etc. As a fully licensed commercial bank, Prime Bank is being managed by a highly professional and dedicated team with long experience in banking. They constantly focus on understanding and anticipating customer needs. It basically has four categories of products and services: Retail banking, Loan, Hasanah Islamic Banking, and SME Banking. Prime Bank provides services to their customers based on these categories and it has ample of products under each category which could easily cater
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trainees. -for developing executives there are a few development programs. There are separate training programs for employees and managers. Training programs for employee are-orientation course on banking, induction/foundation course, foundation course on banking, refreshers course on general banking, basic course on bookkeeping and documents and documentations (workshop) and the training program workshop on anti money laundering is provided separately for both employees and managers. Training programs
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