Overview: Current Conditions Bridget Quattrucci MT299-01P Kaplan University August 3, 2010
Economic & Industry Conditions <ul><li>Our economy and the banking industry are struggling to recover from a recession. </...
Lending <ul><li>We need to completely reassess our lending requirements and incentives to ensure that the bank has less ri...
Lending Assessment <ul><li>Mortgages </li></ul><ul><ul><li>Ensure that the appropriate credit score is being used as the r...
Increase Lending <ul><li>We need to market to new demographics like military families to increase residential mortgages. <...
Delinquencies <ul><li>While possessing property is an option it can be costly to prepare properties for sale and should be...
Contact Information <ul><li>Bridget Quattrucci </li></ul><ul><li>By Phone: 937-242-7289 </li></ul><ul><li>By E-mail: bquat...
References <ul><li>Federal Deposit Insurance Corporation, (2010). Statistics at a glance[Electronic version]. Fdic.gov. Re...
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Mock Bank Manager Presentation

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This was a school project that required the students to make a presentation on the current conditions of a bank as if we were the manager.

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Mock Bank Manager Presentation

  1. 1. Overview: Current Conditions Bridget Quattrucci MT299-01P Kaplan University August 3, 2010
  2. 2. Economic & Industry Conditions <ul><li>Our economy and the banking industry are struggling to recover from a recession. </li></ul><ul><li>Mortgages through commercial banks insured through the Federal Deposit Insurance Corporation (FDIC) have remained steady between the first quarter of 2009 and the first quarter of 2010 (FDIC, 2010) </li></ul><ul><li>Domestic deposits are up for commercial banks insured through the FDIC (FDIC, 2010). </li></ul><ul><li>Our bank is in line with the statistics; our lending has not risen while our deposits have increased. </li></ul><ul><li>Delinquency rates on loans and leases in commercial banks have steadily risen from 2007 to the present (cited in Federal Reserve Bank [FRB], 2010). </li></ul><ul><li>Charge-Off rates also steadily increased since 2007 until they fell slightly between the fourth quarter of 2009 to the first quarter of 2010 (cited in FRB, 2010). </li></ul><ul><li>These statistics are troublesome as we are currently experiencing an increase in delinquencies. </li></ul>
  3. 3. Lending <ul><li>We need to completely reassess our lending requirements and incentives to ensure that the bank has less risk of losing money on bad mortgages (Harrison, 2010). </li></ul><ul><li>With savings up at our bank we need to increase our lending. </li></ul><ul><li>Delinquencies are a problem that needs attention; we need to work with our customers to help them repay their mortgages and help improve our image. </li></ul>
  4. 4. Lending Assessment <ul><li>Mortgages </li></ul><ul><ul><li>Ensure that the appropriate credit score is being used as the requirement for approval (Harrison, 2010). </li></ul></ul><ul><ul><li>Make sure that the correct income-to-payment ratio is being used to base decisions on. </li></ul></ul><ul><ul><li>Change the incentives for Mortgage Brokers to a flat rate bonus instead of a percentage of purchase price (Harrison, 2010) </li></ul></ul><ul><li>Investment Lending </li></ul><ul><ul><li>Keep credit rating requirements slightly higher for investment lending than they are for mortgages as they have been in the past (Harrison, 2010). </li></ul></ul><ul><ul><li>Remove any business category that has higher risk of failure, such as restaurants, from our list of acceptable institutions for investment lending. </li></ul></ul><ul><ul><li>Change the incentives for Investment Brokers to a flat rate in line with Mortgage Brokers (Harrison, 2010) </li></ul></ul>
  5. 5. Increase Lending <ul><li>We need to market to new demographics like military families to increase residential mortgages. </li></ul><ul><li>Working on enticing homeowners into investment properties can be beneficial for the customers, the economy, and the bank as well (Harrison, 2010). </li></ul>
  6. 6. Delinquencies <ul><li>While possessing property is an option it can be costly to prepare properties for sale and should be a last resort as a result (Harrison, 2010). </li></ul><ul><li>If we let customers turn their property in and pay the difference between the property’s value and the amount of the mortgage we can buffer the cost of reselling the property and help the customer avoid bankruptcy (Harrison, 2010) </li></ul><ul><li>Reducing the interest rate will help the customers the most by allowing them to keep their homes but we will take a loss on the interest rate. </li></ul>
  7. 7. Contact Information <ul><li>Bridget Quattrucci </li></ul><ul><li>By Phone: 937-242-7289 </li></ul><ul><li>By E-mail: bquattrucci@earthlink.net </li></ul><ul><li>Please contact me with any questions or comments. </li></ul>
  8. 8. References <ul><li>Federal Deposit Insurance Corporation, (2010). Statistics at a glance[Electronic version]. Fdic.gov. Retrieved on August 3, 2010 from http://www.fdic.gov/bank/statistical/stats/2010mar/industry.html </li></ul><ul><li>Federal Reserve Bank, (2010). Federal reserve statistical release: charge-off rates [Electronic version]. Federalreserve.gov. Retrieved on August 3, 2010 from http://www.federalreserve.gov/releases/chargeoff/chgallnsa.htm </li></ul><ul><li>Federal Reserve Bank, (2010). Federal reserve statistical release: delinquency rates [Electronic version]. Federalreserve.gov. Retrieved on August 3, 2010 from http://www.federalreserve.gov/releases/chargeoff/delallnsa.htm </li></ul><ul><li>Harrison, S., (2010). Telephone interview with an assistant vice president of vault productions in the banking industry. Completed on July 31, 2010. </li></ul>

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