Showing posts with label Banking. Show all posts
Showing posts with label Banking. Show all posts
Our first candidate is Arthur. Arthur has been working in construction for the last three years. His income is $28,000, and his credit history is good. He can put $20,000 down on a house and has an additional $10,000 in savings, but he owes $16,000 on his credit cards. His outrageous debt dates back to before he got married— when he was a bit of a free spender, if you know what I mean. Since Arthur married, he and his wife have been working hard to pay down that debt, and they’ve done a good job of building up savings.
Our second candidate is Beatrice.For the past five years, Beatrice has worked as the assistant manager at the local supermarket, where she worked her way up from a position at the checkout counter. She makes $34,000 a year. Her credit history is excellent, but she has had a hard time saving money. She has $4,500 in savings. The good news is that she has no debt at all. Her parents taught her that debt is the devil’s tool, and Beatrice believed them.
Our third candidate is Charlie. For the past seven years, Charlie has worked at the telephone company as an installer. He makes $36,000 a year. He has $24,000 in savings, of which he can use $15,000 as a down payment. He owes $8,000 in credit card debt. Charlie’s problem, however, is that his credit history is not very good. Charlie went through a period where he let his bills pile up and ignored threatening letters from creditors. As a result, hisFICO score is about 450—rather low for a home loan.
There you have ’em. Ask your children to rank the candidates in terms of who is the most credit-worthy. Your kids can look at Arthur, Beatrice, and Charlie and decide to give loans to one, two, or all of them—or none of them.
If your kids seem stumped at first, you can prompt themby asking which factors are the most important. Is a steady employment history the most significant? What about credit history? How important is income level? What about the size of the down payment? Does the debt level scare you? There are no absolute right or wrong answers. Letme explain why.
Here’s a quick history lesson. In the bad old days, even just a few years ago, the answer as to which of these three individuals would receive a home loan would be . . . none of the above. That’s right. Neither Arthur nor Beatrice nor Charlie would have gotten a loan. All of them would have been rejected—not so much because of their finances, but because of the neighborhoods in which they wanted to buy. Until 1977, banks routinely practiced something they called redlining. They would literally draw red lines on a map around neighborhoods, usually ones with large populations of people of color, they considered unworthy of home loans. Nearly all the inner cities of America were redlined by banks for decades. Redlining made it extremely difficult—if not impossible—for individuals who lived in inner-city neighborhoods to own their own homes.
Letters of credit (LC), import bills for collection, shipping guarantees, import financing, performance bonds, export LC advising, LC safekeeping, LC confirmation, LC checking and negotiation, pre-shipment export finance, export bills for collections, invoice financing, and all the relevant document preparation.
Despite this focus on the LC, over the years the term trade finance has been shifting away from this sometimes cumbersome method of conducting business. It is now estimated that over 80% of global trade is conducted on an open account basis.
Led by large corporates, this form of trade saves costs and time and so has been adopted by smaller corporates as they become more comfortable with their buyer and supplier relationships. Open account transactions can be described as ‘buy now, pay later’ and are more like regular payments for a continuing flow of goods rather than specific transactions. This is much cheaper for corporates.
In response to this development, the organisation SWIFT launched the TSU (trade services utility), a collaborative centralised data matching utility, which allows banks to build products around its core functionality to improve the speed and flow of open account trade. This is helping banks re-intermediate themselves into these trade flows.
While volumes of LCs have remained flat in recent years, their value actually increased and they remain an essential part of emerging market trade and trade in countries where exchange controls are in force. This increase in value is also a reflection of the commodity price boom of 2007/08.
Factoring & Forfaiting
Factoring, or invoice discounting, receivables factoring or debtor financing, is where a company buys a debt or invoice from another company. In this purchase, accounts receivable are discounted in order to allow the buyer to make a profit upon the settlement of the debt. Essentially factoring transfers the ownership of accounts to another party that then chases up the debt.
Factoring therefore relieves the first party of a debt for less than the total amount providing them with working capital to continue trading, while the buyer, or factor, chases up the debt for the full amount and profits when it is paid. The factor is required to pay additional fees, typically a small percentage, once the debt has been settled. The factor may also offer a discount to the indebted party.
Forfaiting (note the spelling) is the purchase of an exporter's receivables – the amount importers owe the exporter – at a discount by paying cash. The purchaser of the receivables, or forfaiter, must now be paid by the importer to settle the debt.
As the receivables are usually guaranteed by the importer's bank, the forfaiter frees the exporter from the risk of non-payment by the importer. The receivables have then become a form of debt instrument that can be sold on the secondary market as bills of exchange or promissory notes.
Despite this focus on the LC, over the years the term trade finance has been shifting away from this sometimes cumbersome method of conducting business. It is now estimated that over 80% of global trade is conducted on an open account basis.
Led by large corporates, this form of trade saves costs and time and so has been adopted by smaller corporates as they become more comfortable with their buyer and supplier relationships. Open account transactions can be described as ‘buy now, pay later’ and are more like regular payments for a continuing flow of goods rather than specific transactions. This is much cheaper for corporates.
In response to this development, the organisation SWIFT launched the TSU (trade services utility), a collaborative centralised data matching utility, which allows banks to build products around its core functionality to improve the speed and flow of open account trade. This is helping banks re-intermediate themselves into these trade flows.
While volumes of LCs have remained flat in recent years, their value actually increased and they remain an essential part of emerging market trade and trade in countries where exchange controls are in force. This increase in value is also a reflection of the commodity price boom of 2007/08.
Factoring & Forfaiting
Factoring, or invoice discounting, receivables factoring or debtor financing, is where a company buys a debt or invoice from another company. In this purchase, accounts receivable are discounted in order to allow the buyer to make a profit upon the settlement of the debt. Essentially factoring transfers the ownership of accounts to another party that then chases up the debt.
Factoring therefore relieves the first party of a debt for less than the total amount providing them with working capital to continue trading, while the buyer, or factor, chases up the debt for the full amount and profits when it is paid. The factor is required to pay additional fees, typically a small percentage, once the debt has been settled. The factor may also offer a discount to the indebted party.
Forfaiting (note the spelling) is the purchase of an exporter's receivables – the amount importers owe the exporter – at a discount by paying cash. The purchaser of the receivables, or forfaiter, must now be paid by the importer to settle the debt.
As the receivables are usually guaranteed by the importer's bank, the forfaiter frees the exporter from the risk of non-payment by the importer. The receivables have then become a form of debt instrument that can be sold on the secondary market as bills of exchange or promissory notes.
For many of us, financial planning means trying not to have too much month at the end of the money. In this chapter, I’d like to explore with you some ways to teach your high school kids about moving forward financially, especially when they have their own small income.
Better yet, find a way for them to feel that they get to do this instead of feeling that they’ve got to do this. You want to teach your kids that having money is a privilege, no matter how much or how little they have. Money is a form of power, but it needs to be treated properly or it will just go somewhere else. Teach your kids that while most people are vague about their finances, that’s not how it works in your household. You can even attach a reward to this new responsibility. For example, put a little bonus in their allowance if they write down their spending. If they don’t write down their spending, then it’s up to you to think of some appropriate loss that they must suffer as a result—in addition to the loss in financial knowledge they’ll already suffer. The key is to be fair and proportionate in terms of both the rewards and the consequences, and then keep your word.
WRITE A BANK BUSINESS PLAN
PlanMagic Business offers you easy to use well written bank business plan template in a popular word processor format, a fully automated close-to-reality financial projection application in MS Excel, an easy to use presentation template, and a comprehensive business plan guide. The Advanced Edition (AE) includes more state-of-the-art financial analysis tools as well as a Web marketing guide.
Buy Business Plan Software
NOW PLAN TO STARTUP, EXPAND OR MONITOR A BANK THE EASY WAY
* plan any bank like a pro
* plan to finance any bank start-up or expansion
* check the feasibility of your plans
* surprise any potential investor with a thorough and complete presentation
* analyze the financial situation with state-of-the-art analysis tools
* stay up-to-date with the real financial situation at all times
* unlimited what-if and other analyses for 5 years without loss of data
* unique tools such as line of credit scenarios, break-even analysis per product line, ROA/ROE/SGR chart, and more
It's the easiest to use business plan program available today. A program that produces faster results than any other, and is brought to you by a company with over 25 years of related experience. It is a helpful bank business plan program and offers the necessary flexibility. Its structure is the preferred format today and it offers you a template that includes all that should be included in a bank business plan geared toward success. The financial application is among the best in the world.
Designed to help you make decisions faster and easier. It's the best value your money can buy when it comes to bank business plan software
The preferred format bank business plan template for investors, SBA, banks and angel investors in MS Word format.
You don't have to create your own contents from scratch or delete most of it as may be the case with a sample plan. You'll also get the most professional printed results. The program includes products, services and one additional business plan template of your choice (in this case bank business plan template). You can also purchase one additional business plan template. The bank business plan template is fully geared towards the bank business. Easily add project plans, phasing diagrams, floor plans, specific plans and more as is needed. Easily insert financial data from the financial application.
PlanMagic Business offers you easy to use well written bank business plan template in a popular word processor format, a fully automated close-to-reality financial projection application in MS Excel, an easy to use presentation template, and a comprehensive business plan guide. The Advanced Edition (AE) includes more state-of-the-art financial analysis tools as well as a Web marketing guide.
Buy Business Plan Software
NOW PLAN TO STARTUP, EXPAND OR MONITOR A BANK THE EASY WAY
* plan any bank like a pro
* plan to finance any bank start-up or expansion
* check the feasibility of your plans
* surprise any potential investor with a thorough and complete presentation
* analyze the financial situation with state-of-the-art analysis tools
* stay up-to-date with the real financial situation at all times
* unlimited what-if and other analyses for 5 years without loss of data
* unique tools such as line of credit scenarios, break-even analysis per product line, ROA/ROE/SGR chart, and more
It's the easiest to use business plan program available today. A program that produces faster results than any other, and is brought to you by a company with over 25 years of related experience. It is a helpful bank business plan program and offers the necessary flexibility. Its structure is the preferred format today and it offers you a template that includes all that should be included in a bank business plan geared toward success. The financial application is among the best in the world.
Designed to help you make decisions faster and easier. It's the best value your money can buy when it comes to bank business plan software
The preferred format bank business plan template for investors, SBA, banks and angel investors in MS Word format.
You don't have to create your own contents from scratch or delete most of it as may be the case with a sample plan. You'll also get the most professional printed results. The program includes products, services and one additional business plan template of your choice (in this case bank business plan template). You can also purchase one additional business plan template. The bank business plan template is fully geared towards the bank business. Easily add project plans, phasing diagrams, floor plans, specific plans and more as is needed. Easily insert financial data from the financial application.
The top bank in India – HDFC Bank.
Yes, there’s one bank that continues to roll better than all others – HDFC Bank. Once again, for the fifth year in a row, the Aditya Puri-led bank beat 76 others to emerge as the #1 player in the industry.
Fastest growing small bank – Yes Bank.
Among the small banks (balance sheet size less than RS 24,000 crore), YES Bank comes in at #2 right behind Punjab & Sind Bank. That means it has beaten other relatively young banks such as Rana Talwar’s Centurion Bank of Punjab, Uday Kotak’s Kotak Mahindra Bank, and the Hindujas’ IndusInd Bank to emerge as the fastest growing bank.
Fastest growing big bank – Axis Bank.
What would you call a bank that has grown its profits at 30 per cent or more in 28 of the last 30 quarters? At the least, a consistent performer. But what has earned P.J. Nayak-led Axis Bank (formerly UTI Bank) its distinction as the fastest growing big bank is its equally impressive growth in other areas such as deposits, and loans and advances.
The most efficient big bank – Federal Bank.
Our strength is technology coupled with human touch,” says Federal Bank Chairman and Managing Director M. Venugopalan. No wonder his Kerala-based private sector bank once again ranks as the most efficient big bank in this year’s BT-KPMG study of best banks.
The most efficient small bank – Karur Vysya Bank.
Karur Vysya is one of the older private sector players but a relatively new convert to technology (it introduced core banking solutions in 2005). Currently, the bank has 281 branches (and will expand to 300 in next two months), 279 ATMs of its own including 18 in rural areas and 108 in semi urban areas, and piggybacks on 10,000 other ATMs. Still, the bank is keen to build its physical presence. It plans to increase the number of branches to 300 shortly and create a pan-India presence.
Best small bank – Punjab & Sind Bank.
It’s been a dramatic story of turnaround at Punjab & Sind Bank from #7 in the small bank category (less than Rs 24,000 crore in balance sheet size) in our 2006 rankings, it has vaulted to the #1 position.
One thing I can vouch for – I have been banking with HDFC Bank for last 8 years and they fully deserve the top slot !
Yes, there’s one bank that continues to roll better than all others – HDFC Bank. Once again, for the fifth year in a row, the Aditya Puri-led bank beat 76 others to emerge as the #1 player in the industry.
Fastest growing small bank – Yes Bank.
Among the small banks (balance sheet size less than RS 24,000 crore), YES Bank comes in at #2 right behind Punjab & Sind Bank. That means it has beaten other relatively young banks such as Rana Talwar’s Centurion Bank of Punjab, Uday Kotak’s Kotak Mahindra Bank, and the Hindujas’ IndusInd Bank to emerge as the fastest growing bank.
Fastest growing big bank – Axis Bank.
What would you call a bank that has grown its profits at 30 per cent or more in 28 of the last 30 quarters? At the least, a consistent performer. But what has earned P.J. Nayak-led Axis Bank (formerly UTI Bank) its distinction as the fastest growing big bank is its equally impressive growth in other areas such as deposits, and loans and advances.
The most efficient big bank – Federal Bank.
Our strength is technology coupled with human touch,” says Federal Bank Chairman and Managing Director M. Venugopalan. No wonder his Kerala-based private sector bank once again ranks as the most efficient big bank in this year’s BT-KPMG study of best banks.
The most efficient small bank – Karur Vysya Bank.
Karur Vysya is one of the older private sector players but a relatively new convert to technology (it introduced core banking solutions in 2005). Currently, the bank has 281 branches (and will expand to 300 in next two months), 279 ATMs of its own including 18 in rural areas and 108 in semi urban areas, and piggybacks on 10,000 other ATMs. Still, the bank is keen to build its physical presence. It plans to increase the number of branches to 300 shortly and create a pan-India presence.
Best small bank – Punjab & Sind Bank.
It’s been a dramatic story of turnaround at Punjab & Sind Bank from #7 in the small bank category (less than Rs 24,000 crore in balance sheet size) in our 2006 rankings, it has vaulted to the #1 position.
One thing I can vouch for – I have been banking with HDFC Bank for last 8 years and they fully deserve the top slot !
Banking Industry
The Banking Industry was once a simple and reliable business that took deposits from investors at a lower interest rate and loaned it out to borrowers at a higher rate.
However deregulation and technology led to a revolution in the Banking Industry that saw it transformed. Banks have become global industrial powerhouses that have created ever more complex products that use risk and securitisation in models that only PhD students can understand. Through technology development, banking services have become available 24 hours a day, 365 days a week, through ATMs, at online bankings, and in electronically enabled exchanges where everything from stocks to currency futures contracts can be traded .
The Banking Industry at its core provides access to credit. In the lenders case, this includes access to their own savings and investments, and interest payments on those amounts. In the case of borrowers, it includes access to loans for the creditworthy, at a competitive interest rate.
Banking services include transactional services, such as verification of account details, account balance details and the transfer of funds, as well as advisory services, that help individuals and institutions to properly plan and manage their finances. Online banking channels have become key in the last 10 years.
The collapse of the Banking Industry in the Financial Crisis, however, means that some of the more extreme risk-taking and complex securitisation activities that banks increasingly engaged in since 2000 will be limited and carefully watched, to ensure that there is not another banking system meltdown in the future.
The Banking Industry was once a simple and reliable business that took deposits from investors at a lower interest rate and loaned it out to borrowers at a higher rate.
However deregulation and technology led to a revolution in the Banking Industry that saw it transformed. Banks have become global industrial powerhouses that have created ever more complex products that use risk and securitisation in models that only PhD students can understand. Through technology development, banking services have become available 24 hours a day, 365 days a week, through ATMs, at online bankings, and in electronically enabled exchanges where everything from stocks to currency futures contracts can be traded .
The Banking Industry at its core provides access to credit. In the lenders case, this includes access to their own savings and investments, and interest payments on those amounts. In the case of borrowers, it includes access to loans for the creditworthy, at a competitive interest rate.
Banking services include transactional services, such as verification of account details, account balance details and the transfer of funds, as well as advisory services, that help individuals and institutions to properly plan and manage their finances. Online banking channels have become key in the last 10 years.
The collapse of the Banking Industry in the Financial Crisis, however, means that some of the more extreme risk-taking and complex securitisation activities that banks increasingly engaged in since 2000 will be limited and carefully watched, to ensure that there is not another banking system meltdown in the future.
Mortgage banking has been encompassing for the publicity or promotion of the various mortgage loans to investors as well as individuals in the mortgage business.
Online banking services has developed the banking practices easier worldwide.
Banking in the small business sector plays an important role. Find various banking services available for small businesses.
Think Banking provide a bank account which is "Open to anyone", and which doesn't accrue fees.
Online banking services has developed the banking practices easier worldwide.
Banking in the small business sector plays an important role. Find various banking services available for small businesses.
Think Banking provide a bank account which is "Open to anyone", and which doesn't accrue fees.
I think one key is to keep kids knowledgeable but not obsessed with money—to give them tools to manage their money but not be over conscious about it. I teach my kids that money is the means to an end, not the end. Money is the tool to achieve the goal, not the goal.
In the first part of finance, we discussed how you’ll be writing down your spending on that big pad of accountant ledger paper. Remember, don’t be hiding that ledger paper away! Leave it out in the kitchen, where everyone sees it every single day. Let your kids see where the money goes. Most children, rich or poor, have absolutely no concept of what it costs to live. They don’t know how large a rent or mortgage payment can be, or even the cost of putting groceries on the table. They can’t yet comprehend the effort you put into bringing home the bacon, or even what a pound of bacon might cost. Their knowledge of the cost of clothing consists mainly of that ‘‘phat’’ $100 pair of shoes they covet at the mall.
No parental lecture has the power inherent in parental example. If your kids regularly see bounced checks coming back from the bank, they’ll have a hard time taking anything you say seriously. If you are financially responsible, your kids will look to you as a role model. And if you are less than financially responsible, they will only be too delighted to follow your example! Let’s provide great examples for our kids, because one great example is worth a thousand nagging words.
In the first part of finance, we discussed how you’ll be writing down your spending on that big pad of accountant ledger paper. Remember, don’t be hiding that ledger paper away! Leave it out in the kitchen, where everyone sees it every single day. Let your kids see where the money goes. Most children, rich or poor, have absolutely no concept of what it costs to live. They don’t know how large a rent or mortgage payment can be, or even the cost of putting groceries on the table. They can’t yet comprehend the effort you put into bringing home the bacon, or even what a pound of bacon might cost. Their knowledge of the cost of clothing consists mainly of that ‘‘phat’’ $100 pair of shoes they covet at the mall.
No parental lecture has the power inherent in parental example. If your kids regularly see bounced checks coming back from the bank, they’ll have a hard time taking anything you say seriously. If you are financially responsible, your kids will look to you as a role model. And if you are less than financially responsible, they will only be too delighted to follow your example! Let’s provide great examples for our kids, because one great example is worth a thousand nagging words.
There’s an old Southern saying: ‘‘No matter howmuch I love you, my child, if I don’t have wisdom, all I can give you is my own ignorance.’’ Out of love, we often pass down bad habits from one generation to the next. Your job, as CEO of your household and financial guru for your children, is to draw the line as to what is acceptable and what is not.
Before we can start teaching our kids about money,we have to examine our own attitude toward it. Both wealthy and poor families have one surprising trait in common: parents do not spend much time discussing money with their kids. The difference comes in the expectations. In financially wealthy families, children grow up believing that they are entitled to be rich. There is an expectation that they will complete their education, land a financially secure job, earn a lot of money, buy a big house, drive nice cars, and so on. They view money as a tool toward having a wonderful, fulfilling life.
For poor, working-, and lower-middle-class families, there are no such expectations. Parents in poor or working-class families often foster negative notions about money in their children. These parents may harbor resentment toward others who are better-off or had greater opportunities for education or work. They view money as negative, almost dirty. Rich people have gotten that way only by cheating or being dishonest. Even some wealthy people believe that ‘‘behind every great fortune is a crime.’’
Certainly many of the wealthy role models in the public eye are not positive examples, especially for kids. Every music video I have seen depicts success as a fancy car, attractive women, champagne, and all the other trappings of wealth. I have yet to see a rap video of a twenty-two-year-old singer studying The Wall Street Journal to figure out what the next investment should be for his retirement plan! It may not be sexy, but it’s real.
Banking on Our Future banker volunteer: ‘‘Does anyone know what
‘ATM’ means?’’
Fourth-grade student: ‘‘All the money!’’
Corporate America constantly bombards everyone in our society with messages that emphasize consuming, spending, and living.
The groups least able to counter the effects of those financially destabilizing messages are inner-city young people. These youths have the least amount of access to information about financial literacy. They don’t know—and all too often, neither do their parents. For children and parents alike, ‘‘It’s what they don’t know that they don’t know that’s killing them.’’
Learning how to handle money ought to be as vital a part of education as reading and writing for all of our young people. Children growing up in the inner city—and those of middle-class families eking by on $25,000 or $30,000 a year or less—are at risk of losing any hope of a solid financial future from bad habits learned early. Our culture’s cynical barrage of images has brainwashed them into believing that the right car, clothes, and shoes are all you need to succeed.
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