FULL TITLE:
Obtaining Funds from New Financial Instruments and New Tools for Managing Asset and Liabilities
ROOM: Aberdare Hall
FACILITATED BY: MFX Solutions
Mr. Howard Brady
Mr. Brian Cox
Ms. Sonia Mukhi
This document outlines a study that examines the factors that influence the arrangement timetable of bank loan syndications. It begins with an introduction to the syndicated loan market and the motivations of borrowers and lenders for engaging in syndicated loans. It then discusses potential agency problems in loan syndications and reviews previous literature on syndicate design and pricing. The document focuses on investigating how deal terms, borrower risk profile, agency issues, and banking environment impact the speed with which loan syndications are arranged. It aims to be the first study to empirically examine the drivers of syndication arrangement timetables worldwide.
This document presents an outline for a study on how the composition and organization of syndicate banks can impact the speed of syndicated loan deals. It introduces syndicated loans and discusses how the speed of the syndication process is important for both borrowers and lenders. It also describes some of the potential agency problems in syndicated lending due to informational asymmetries between senior arranger banks and junior participant banks. The methodology, data, results, and conclusion sections are then outlined.
This training provides Devon Bank employees with information about regulatory compliance. It discusses the various federal regulations that Devon Bank must comply with, including regulations from the FDIC, FRB, OCC, and HUD. It also outlines responsibilities for different bank departments like branch operations and lending. The training aims to educate employees on compliance rules and avoid penalties for noncompliance.
1) Consortium banking involves multiple banks and financial institutions jointly financing a single borrower, with common documentation and risk sharing.
2) The total loan is divided among the participating banks, with the bank providing the largest share acting as the lead bank coordinating with the borrower.
3) While consortiums allow for risk sharing, they also introduce new risks that must be defined and allocated between the parties through contracts.
The document provides an overview of loan syndication. It begins by defining loan syndication as the process where a group of lenders come together to provide a loan that is larger than any single lender is willing to provide alone. This allows risk to be distributed across multiple lenders.
It then discusses some key aspects of loan syndication including the roles of various parties like the lead arranger who organizes the syndicate and ensures documentation is completed. Borrowers benefit from loan syndication through access to larger amounts of funding, more flexible terms, and lower interest rates due to risk being distributed.
Finally, it briefly touches on how loan syndication has grown to become a dominant financing mechanism particularly for large projects
Small business lending is a specialized area that involves distinctive risks. There are two main approaches to small business lending: relationship management and credit scoring. Relationship management relies on analyzing financials and cashflow projections while assessing risks like key personnel. Credit scoring uses mathematical models to assess applications based on financial ratios and credit history. Both aim to overcome challenges like asymmetric information between lenders and small business borrowers.
This document discusses different types of regulatory credit exposures under the Basel III framework, including debt exposures, securitization exposures, and specialized lending. It provides details on various types of debt exposures such as loans, bonds, credit lines, and credit derivatives. It defines securitization exposures as financial instruments constructed through credit structuring using underlying debt portfolios or combinations of credit default swaps and high quality assets. The document also briefly outlines capital charge calculation requirements for securitization exposures under Basel III.
Information on the five C's of credit, bankruptcy proceedings, credit policy, credit investigations, credit fraud, credit decisions, customer visits, the sales department, and the vredit department.
This document outlines a study that examines the factors that influence the arrangement timetable of bank loan syndications. It begins with an introduction to the syndicated loan market and the motivations of borrowers and lenders for engaging in syndicated loans. It then discusses potential agency problems in loan syndications and reviews previous literature on syndicate design and pricing. The document focuses on investigating how deal terms, borrower risk profile, agency issues, and banking environment impact the speed with which loan syndications are arranged. It aims to be the first study to empirically examine the drivers of syndication arrangement timetables worldwide.
This document presents an outline for a study on how the composition and organization of syndicate banks can impact the speed of syndicated loan deals. It introduces syndicated loans and discusses how the speed of the syndication process is important for both borrowers and lenders. It also describes some of the potential agency problems in syndicated lending due to informational asymmetries between senior arranger banks and junior participant banks. The methodology, data, results, and conclusion sections are then outlined.
This training provides Devon Bank employees with information about regulatory compliance. It discusses the various federal regulations that Devon Bank must comply with, including regulations from the FDIC, FRB, OCC, and HUD. It also outlines responsibilities for different bank departments like branch operations and lending. The training aims to educate employees on compliance rules and avoid penalties for noncompliance.
1) Consortium banking involves multiple banks and financial institutions jointly financing a single borrower, with common documentation and risk sharing.
2) The total loan is divided among the participating banks, with the bank providing the largest share acting as the lead bank coordinating with the borrower.
3) While consortiums allow for risk sharing, they also introduce new risks that must be defined and allocated between the parties through contracts.
The document provides an overview of loan syndication. It begins by defining loan syndication as the process where a group of lenders come together to provide a loan that is larger than any single lender is willing to provide alone. This allows risk to be distributed across multiple lenders.
It then discusses some key aspects of loan syndication including the roles of various parties like the lead arranger who organizes the syndicate and ensures documentation is completed. Borrowers benefit from loan syndication through access to larger amounts of funding, more flexible terms, and lower interest rates due to risk being distributed.
Finally, it briefly touches on how loan syndication has grown to become a dominant financing mechanism particularly for large projects
Small business lending is a specialized area that involves distinctive risks. There are two main approaches to small business lending: relationship management and credit scoring. Relationship management relies on analyzing financials and cashflow projections while assessing risks like key personnel. Credit scoring uses mathematical models to assess applications based on financial ratios and credit history. Both aim to overcome challenges like asymmetric information between lenders and small business borrowers.
This document discusses different types of regulatory credit exposures under the Basel III framework, including debt exposures, securitization exposures, and specialized lending. It provides details on various types of debt exposures such as loans, bonds, credit lines, and credit derivatives. It defines securitization exposures as financial instruments constructed through credit structuring using underlying debt portfolios or combinations of credit default swaps and high quality assets. The document also briefly outlines capital charge calculation requirements for securitization exposures under Basel III.
Information on the five C's of credit, bankruptcy proceedings, credit policy, credit investigations, credit fraud, credit decisions, customer visits, the sales department, and the vredit department.
PINE is a specialized Brazilian bank that provides financial solutions to corporate clients. It has four primary business lines: corporate credit, hedging desk, investment banking/wealth management, and distribution. The bank has experienced strong growth in recent years across its business lines. It focuses on long-term client relationships and customized solutions. PINE has a diversified credit portfolio across industries and regions, with strong credit quality and low non-performing loans. The bank has increasingly diversified its funding sources through international issuances.
The document discusses loan syndication markets in the US and Europe. In the US, loan pricing is determined through a book-building process where investors submit commitments at different price points and the arranger decides the final price based on overall demand. In Europe, syndicated loans are predominantly underwritten deals with arrangers taking on risk. The growth of the European loan market has been fueled by the single euro currency and increased mergers and acquisitions. Syndicated loans allow banks to spread risk across multiple lenders and involve an arranger coordinating the syndicate.
Chuck Nwokocha is a senior risk management consultant presenting on enhancing credit quality at financial institutions. He discusses the importance of strong policies, processes, and lending staff (the 3 P's). He then covers various credit analysis tools like the 5 C's of lending and global cash flow analysis to standardize underwriting. Nwokocha notes examiner concerns around commercial and industrial lending include risk rating systems, asset quality, and thorough documentation. He emphasizes policies, ongoing reviews, and global cash flow analysis for managing credit risk.
Credit Rating Process with Respect to Corporate DebtSumit Kumar Singh
Volatility in the financial market is becoming common day by day as we are becoming more and more intensive towards global market. The importance of Credit Rating Agencies has gone up because an investor can't always keep track on key 'Financial Metrics' of companies. So investors try to fix this with the help of ratings assigned by Recognized Rating Agencies
This chapter discusses principles of corporate lending. It covers applying lending criteria, structuring loan proposals, importance of financial statements, and managing the loan portfolio. The document outlines key aspects of corporate lending including the purpose of lending, assessing borrowers using the 5 Cs and PARSER methods, product structures, required skills of loan officers, and lessons from experienced credit managers.
The document is a student project report on bank loans submitted to the University of Mumbai. It includes an introduction that defines loans and their importance for banks and customers. It also describes different types of bank loans like lines of credit, installment loans, and secured/unsecured loans. The report further discusses government-backed SBA loan programs in the US that aim to support small businesses through loan guarantees.
This document discusses pricing models for collateralized debt obligations (CDOs), which are financial instruments backed by pools of assets such as loans, bonds, and mortgages. It focuses on implementing the Gaussian and Student's t copula models to value CDO tranches using Monte Carlo simulation. The Gaussian copula cannot account for joint extreme events, while the Student's t copula can model heavier tails by varying its degrees of freedom parameter. The document generates pricing surfaces for different CDO tranches under each copula to analyze their effects and suitability for modeling CDOs under different economic conditions.
1) The microfinance lending process involves several steps including an orientation for applicants, collecting and verifying application information, reviewing applications in a credit committee meeting, processing approved loans, disbursing funds to borrowers, and collecting loan payments.
2) Key steps are conducting credit checks of applicants, presenting application materials to a credit committee for approval, preparing loan documentation if approved, signing documents and collecting the first payment from borrowers, and ongoing collection of subsequent loan payments.
3) Regular collection of loan payments is managed through issuing pre-numbered payment receipts to agents who collect and batch payments for accounting and updating of borrower accounts.
Syndication refers to joint financing by multiple banks for a single borrower. The key objectives of syndicate financing include spreading credit risk, analyzing project viability from different angles, enhancing returns through fees, and promoting large industries. The syndication process involves a lead bank evaluating a project proposal, preparing common terms, obtaining lender commitments, and closing the deal. Agrani Bank has experience as both a lead arranger and participating bank across sectors like textiles, garments, steel, and power. As a lead arranger, it has financed 13 large projects and participated in 63 other projects.
Collateralized Debt Obligations Presentation Final Version!James_A_McDaniel
This document provides an overview of collateralized debt obligations (CDOs) focused on commercial real estate. It discusses the taxonomy and anatomy of CDOs, including the types of assets they contain, their capital structure, and the parties involved such as issuers, investors, and rating agencies. It also describes the evolution of CDO collateral over time from assets like REIT debt and CMBS to include riskier products like whole loans, B-notes, and mezzanine loans.
The document discusses the concept of structured finance, describing how structured finance uses special purpose vehicles to pool and securitize assets in order to access capital markets and transfer risk. It provides an overview of key elements of structured finance transactions including special purpose vehicles, securitization, and the roles of various participants. The goal is to illustrate how structured finance can be used to obtain financing and optimize values for companies through restructuring debts and investments.
Credit ratings are evaluations of an entity's ability to meet financial obligations. They are issued by credit rating agencies and estimate creditworthiness based on factors like financial history, assets, liabilities, management, and industry prospects. Credit ratings use letter symbols like AAA to D, with AAA being the highest rating and D the lowest. They provide guidance to investors and encourage disclosure. Major global credit rating agencies include Moody's, S&P, and Fitch while major Indian agencies are CRISIL, ICRA, and CARE. Credit ratings benefit both investors by informing decisions and companies by potentially lowering borrowing costs. However, ratings also have disadvantages like potential bias, misrepresentation, or not reflecting changing conditions.
This document summarizes various sources of credit in the Philippines, including individual money lenders, retail stores like sari-sari stores, pawnshops, commercial banks, commercial paper houses, savings banks, rural banks, development banks, investment banks, savings and loan associations, finance companies, credit unions, and insurance companies. It provides details on the origins and operations of each type of credit source.
Watch full video on YouTube -
https://youtu.be/f3VgVOgAUoE
Credit management is the process of granting credit , setting the term its granted on, recovering this credit when its due and ensuring compliance with company credit policy.
The difference in the rate of interest that a bank charges on the amount lent and the rate it pays to the depositors is technically called spread or interest rate spread.
This spread bank has to use to meet all its overheads and interest on deposit but also provide for NPA.
Thank You For Watching
Subscribe to DevTech Finance
A collateralized debt obligation (CDO) pools together cash-generating assets like mortgages, bonds, and loans, and repackages them into tranches of varying risk levels that are sold to investors. The senior tranches have first claim on collateral in the event of default, making them safer with lower yields, while junior tranches offer higher yields to compensate for their higher risk. CDOs grew rapidly in the 2000s as a way to distribute risk, with global issuance peaking at $503 billion in 2007, though the market declined after the 2008 financial crisis.
through this slide , one can get a brief idea of what securitization is , how it works and the differences between conventional and Islamic securitization .
This document summarizes the key aspects of Islamic finance. It discusses the objectives of studying Islamic financial systems and products. The core principles of Islamic finance are outlined, including a prohibition on interest and speculation. Common Islamic finance products are also described, such as Musharakah, Mudaraba, Murabaha, and Salam. The document notes that Islamic finance aims to align financial activities with ethical and social principles based on Sharia law.
The document provides an overview of banking and financial institutions in Pakistan. It discusses strategic objectives of the State Bank of Pakistan including broadening access to financial services. It outlines various initiatives to promote lending in key sectors such as SMEs, microfinance, exports, and agriculture. It also discusses efforts to ensure soundness of the financial sector and maintain price stability. The types of lending including fund-based, non-fund-based and other modes are explained. Priority sectors for bank lending like agriculture, small industries are highlighted.
What loan funders look for in considering applications from potential CAT org...walescva
This document discusses securing loans for community asset transfers. It outlines why organizations may want to use loan finance, what loans can be used for, and what lenders look for in loan applications. Lenders want to ensure they can get repaid, so they assess risks using the "CAMPARI" method of evaluating a borrower's character, ability to repay, margins, purpose of the loan, amount of the loan, repayment sources, and any insurance like security. The document also reviews the pros and cons of loans, factors for organizations to consider, and the process that occurs after a loan is approved.
PINE is a specialized Brazilian bank that provides financial solutions to corporate clients. It has four primary business lines: corporate credit, hedging desk, investment banking/wealth management, and distribution. The bank has experienced strong growth in recent years across its business lines. It focuses on long-term client relationships and customized solutions. PINE has a diversified credit portfolio across industries and regions, with strong credit quality and low non-performing loans. The bank has increasingly diversified its funding sources through international issuances.
The document discusses loan syndication markets in the US and Europe. In the US, loan pricing is determined through a book-building process where investors submit commitments at different price points and the arranger decides the final price based on overall demand. In Europe, syndicated loans are predominantly underwritten deals with arrangers taking on risk. The growth of the European loan market has been fueled by the single euro currency and increased mergers and acquisitions. Syndicated loans allow banks to spread risk across multiple lenders and involve an arranger coordinating the syndicate.
Chuck Nwokocha is a senior risk management consultant presenting on enhancing credit quality at financial institutions. He discusses the importance of strong policies, processes, and lending staff (the 3 P's). He then covers various credit analysis tools like the 5 C's of lending and global cash flow analysis to standardize underwriting. Nwokocha notes examiner concerns around commercial and industrial lending include risk rating systems, asset quality, and thorough documentation. He emphasizes policies, ongoing reviews, and global cash flow analysis for managing credit risk.
Credit Rating Process with Respect to Corporate DebtSumit Kumar Singh
Volatility in the financial market is becoming common day by day as we are becoming more and more intensive towards global market. The importance of Credit Rating Agencies has gone up because an investor can't always keep track on key 'Financial Metrics' of companies. So investors try to fix this with the help of ratings assigned by Recognized Rating Agencies
This chapter discusses principles of corporate lending. It covers applying lending criteria, structuring loan proposals, importance of financial statements, and managing the loan portfolio. The document outlines key aspects of corporate lending including the purpose of lending, assessing borrowers using the 5 Cs and PARSER methods, product structures, required skills of loan officers, and lessons from experienced credit managers.
The document is a student project report on bank loans submitted to the University of Mumbai. It includes an introduction that defines loans and their importance for banks and customers. It also describes different types of bank loans like lines of credit, installment loans, and secured/unsecured loans. The report further discusses government-backed SBA loan programs in the US that aim to support small businesses through loan guarantees.
This document discusses pricing models for collateralized debt obligations (CDOs), which are financial instruments backed by pools of assets such as loans, bonds, and mortgages. It focuses on implementing the Gaussian and Student's t copula models to value CDO tranches using Monte Carlo simulation. The Gaussian copula cannot account for joint extreme events, while the Student's t copula can model heavier tails by varying its degrees of freedom parameter. The document generates pricing surfaces for different CDO tranches under each copula to analyze their effects and suitability for modeling CDOs under different economic conditions.
1) The microfinance lending process involves several steps including an orientation for applicants, collecting and verifying application information, reviewing applications in a credit committee meeting, processing approved loans, disbursing funds to borrowers, and collecting loan payments.
2) Key steps are conducting credit checks of applicants, presenting application materials to a credit committee for approval, preparing loan documentation if approved, signing documents and collecting the first payment from borrowers, and ongoing collection of subsequent loan payments.
3) Regular collection of loan payments is managed through issuing pre-numbered payment receipts to agents who collect and batch payments for accounting and updating of borrower accounts.
Syndication refers to joint financing by multiple banks for a single borrower. The key objectives of syndicate financing include spreading credit risk, analyzing project viability from different angles, enhancing returns through fees, and promoting large industries. The syndication process involves a lead bank evaluating a project proposal, preparing common terms, obtaining lender commitments, and closing the deal. Agrani Bank has experience as both a lead arranger and participating bank across sectors like textiles, garments, steel, and power. As a lead arranger, it has financed 13 large projects and participated in 63 other projects.
Collateralized Debt Obligations Presentation Final Version!James_A_McDaniel
This document provides an overview of collateralized debt obligations (CDOs) focused on commercial real estate. It discusses the taxonomy and anatomy of CDOs, including the types of assets they contain, their capital structure, and the parties involved such as issuers, investors, and rating agencies. It also describes the evolution of CDO collateral over time from assets like REIT debt and CMBS to include riskier products like whole loans, B-notes, and mezzanine loans.
The document discusses the concept of structured finance, describing how structured finance uses special purpose vehicles to pool and securitize assets in order to access capital markets and transfer risk. It provides an overview of key elements of structured finance transactions including special purpose vehicles, securitization, and the roles of various participants. The goal is to illustrate how structured finance can be used to obtain financing and optimize values for companies through restructuring debts and investments.
Credit ratings are evaluations of an entity's ability to meet financial obligations. They are issued by credit rating agencies and estimate creditworthiness based on factors like financial history, assets, liabilities, management, and industry prospects. Credit ratings use letter symbols like AAA to D, with AAA being the highest rating and D the lowest. They provide guidance to investors and encourage disclosure. Major global credit rating agencies include Moody's, S&P, and Fitch while major Indian agencies are CRISIL, ICRA, and CARE. Credit ratings benefit both investors by informing decisions and companies by potentially lowering borrowing costs. However, ratings also have disadvantages like potential bias, misrepresentation, or not reflecting changing conditions.
This document summarizes various sources of credit in the Philippines, including individual money lenders, retail stores like sari-sari stores, pawnshops, commercial banks, commercial paper houses, savings banks, rural banks, development banks, investment banks, savings and loan associations, finance companies, credit unions, and insurance companies. It provides details on the origins and operations of each type of credit source.
Watch full video on YouTube -
https://youtu.be/f3VgVOgAUoE
Credit management is the process of granting credit , setting the term its granted on, recovering this credit when its due and ensuring compliance with company credit policy.
The difference in the rate of interest that a bank charges on the amount lent and the rate it pays to the depositors is technically called spread or interest rate spread.
This spread bank has to use to meet all its overheads and interest on deposit but also provide for NPA.
Thank You For Watching
Subscribe to DevTech Finance
A collateralized debt obligation (CDO) pools together cash-generating assets like mortgages, bonds, and loans, and repackages them into tranches of varying risk levels that are sold to investors. The senior tranches have first claim on collateral in the event of default, making them safer with lower yields, while junior tranches offer higher yields to compensate for their higher risk. CDOs grew rapidly in the 2000s as a way to distribute risk, with global issuance peaking at $503 billion in 2007, though the market declined after the 2008 financial crisis.
through this slide , one can get a brief idea of what securitization is , how it works and the differences between conventional and Islamic securitization .
This document summarizes the key aspects of Islamic finance. It discusses the objectives of studying Islamic financial systems and products. The core principles of Islamic finance are outlined, including a prohibition on interest and speculation. Common Islamic finance products are also described, such as Musharakah, Mudaraba, Murabaha, and Salam. The document notes that Islamic finance aims to align financial activities with ethical and social principles based on Sharia law.
The document provides an overview of banking and financial institutions in Pakistan. It discusses strategic objectives of the State Bank of Pakistan including broadening access to financial services. It outlines various initiatives to promote lending in key sectors such as SMEs, microfinance, exports, and agriculture. It also discusses efforts to ensure soundness of the financial sector and maintain price stability. The types of lending including fund-based, non-fund-based and other modes are explained. Priority sectors for bank lending like agriculture, small industries are highlighted.
What loan funders look for in considering applications from potential CAT org...walescva
This document discusses securing loans for community asset transfers. It outlines why organizations may want to use loan finance, what loans can be used for, and what lenders look for in loan applications. Lenders want to ensure they can get repaid, so they assess risks using the "CAMPARI" method of evaluating a borrower's character, ability to repay, margins, purpose of the loan, amount of the loan, repayment sources, and any insurance like security. The document also reviews the pros and cons of loans, factors for organizations to consider, and the process that occurs after a loan is approved.
Startup Stage - Fintech - Presentation by Alex Riesenkampff, Co-Founder of iBondis Capital at the Axel Springer NOAH Conference Berlin 2016, Tempodrom on the 9th of June 2016.
This document discusses various aspects of raising funds domestically and globally. It begins by outlining the key topics that will be covered, including the process of fund raising, roles of different players, regulatory environment, types of instruments, costs, risks, and challenges. It then provides details on the introduction and process of fund raising. It describes the roles of various players like government, regulators, service providers, and media. It also discusses the regulatory environment, domestic and global instruments, specialized instruments, costs, risks, and challenges related to fund raising.
This document provides an overview of national capital markets and international financing. It discusses several key topics:
1. Trends in corporate financing including a decline in bank lending worldwide and a rise in direct financing through capital markets.
2. The globalization of financial markets and how technology has reduced barriers and increased interconnectivity.
3. National capital markets serving as international financial centers and how certain cities have become hubs for global capital flows.
4. The various sources of development financing including multilateral banks like the World Bank as well as regional and national development banks.
5. Project finance as a method for raising funds for large infrastructure projects where lenders look primarily to the cash flows from the project
SA Home Loans is a South African company that originated home loans and funded its loan book through securitization, the process of packaging individual loans into marketable securities. The company presented on the growth of securitization globally and in South Africa. It discussed its own success using securitization to access cheaper funding than banks, allowing it to offer discounted home loans. Moving forward, it aims to expand securitization activity in South Africa through greater investor education, cross-border deals, and additional asset classes.
The document is a student's project on loan syndication. It includes a declaration by the student that the information submitted is true and original. It also includes a certificate from the student's project guide. The acknowledgements section thanks various individuals who provided guidance and support. The index lists the contents of the project, which covers topics such as the meaning of loan syndication, the syndication process, reasons for syndicated lending, and the role of parties involved. It also includes an overview of ICICI Bank and its syndication services.
The document discusses various types of financial services including traditional activities like leasing, hire purchase, bills discounting, and venture capital as well as modern activities like risk management services and capital restructuring advisory. It also covers the objectives, characteristics, and importance of financial services and how they contribute to economic growth and capital formation.
The project report provides an overview of trade finance. It defines trade finance and discusses various tools used in trade finance like letters of credit, bonds and guarantees, invoice discounting and factoring, and supply chain finance. It also outlines some common risks in international trade like counterparty risk, country risk, and FX risk. Finally, it discusses some key trade finance products available in India such as term loans, working capital limits, letters of credit, invoice discounting/factoring and export credit.
This document provides an overview of loan management systems and the loan lifecycle process. It defines what a loan is, discusses the key parties and stages involved, and outlines the types and importance of bank loans for businesses and individuals. The stages covered include application, security/collateral, disbursement, repayment, monitoring, and potential rescheduling. Factors influencing loan pricing and the importance of loan documentation, analysis, supervision, review and problem identification are also summarized.
This document provides an overview of the X 430.611 course on credit markets. The course will cover macroeconomic and microeconomic aspects of credit, including various credit instruments, markets, and firm-level and consumer credit decisions. It will examine bubbles, bank runs, liquidity crises and defaults from both market and individual perspectives. The slides that follow provide examples of class content, including the importance of credit, capital structures, how credit is priced based on risk, and mechanisms like securitization that distribute credit risk. The course also examines the dark side of debt through topics like how leverage can inflate bubbles and how excessive leverage can distort the economy.
Personal Financial Management through 5nance.comManvi Sharma
The document discusses personal financial management. It notes that personal finance addresses how individuals obtain, budget, save, and spend monetary resources over time based on their goals, risk appetite, income, expenses, and accumulated wealth. It also discusses assessing an individual's risk profile based on their life stage and matching them with appropriate financial products and investment classes, from low to high risk, to achieve different return expectations. The conclusion emphasizes the importance of financial education, knowing one's risk tolerance, regularly reviewing one's portfolio, diversifying investments, and analyzing risks of different financial products.
This document provides information on sources and application of bank funds, including capital adequacy, deposits, non-deposit sources, loan types, and credit analysis. It discusses capital adequacy ratios and their calculation. It describes various deposit types including transaction deposits and term deposits. It also outlines non-deposit sources of funds such as certificates of deposit, foreign funds, and money market funds. The document discusses designing deposit schemes, pricing deposits, and applying bank funds through lending and investments. It details various loan types including fund-based, non-fund-based, and asset-based loans. It outlines the major components of a loan policy and the steps involved in credit analysis, delivery, administration, and pricing of loans. It concludes with
This document provides an overview of a Brazilian bank called PINE. It discusses PINE's history since 1939, business lines including corporate credit, treasury services, and investment banking. It also covers PINE's competitive advantages, focus on client relationships, solid financial position, and recent upgrades to its credit ratings. The document contains details on PINE's operations, strategic pillars, and financial performance in both text and graphical formats.
2016 Mark Barbash Financing Presentation Copy Colorado FINALMBEDC, LLC
This document provides an overview of economic development financing. It discusses understanding the business and project, identifying private and public financing options, determining any financing gaps, and structuring deals. Private financing sources include banks, venture capital, and capital markets. Public programs include direct loans, loan guarantees, tax-exempt bonds, tax incentives, and intermediary programs. The document outlines steps in the financing process and principles for working with private and public financing.
Credit Appraisal System IN Commercial Vehicle loans Undertaken at INDIA INFOL...Danish Dhaar
Summer Training Project Report on
Credit Appraisal System IN Commercial Vehicle loans
Undertaken at
INDIA INFOLINE FINANCE LTD
Submitted in Partial Fulfilment of the Requirement for the Award of the Degree of
Master of Business Administration
By
Danish Showkat Dhar
Roll No.14036113030
Reg. No.:-29437-IC-2011
Under The Supervision of
MR. Sachin Gupta
(AVP: CREDIT & OPS)
INDIA INFOLINE FINANCE LTD
DEPT. OF MANAGEMENT STUDIES
SOUTH CAMPUS UNIVERSITY OF KASHMIR
ANANTNAG
This document provides an overview of the financial system in India, including its evolution, key institutions and regulatory bodies, markets, instruments, and functions. It discusses the Reserve Bank of India's role in regulating the financial system and various committees formed to reform the banking sector. The key components of the financial system are described, including financial institutions, markets, instruments, and services. The core functions of the financial system around transforming liabilities, assets, size, risk, and maturity are outlined. The document concludes by examining the relationship between a developed financial system and economic growth.
Similar to AMERMS Course 4: Obtaining Funds from New Financial Instruments - PPT 1 (20)
This course will inform, engage, and prepare participants who are considering the feasibility and benefits of adding health to microfinance. The training will provide experience-based examples, lessons learned, cost information, and discussion about addressing the link between poverty and ill health without taking MFIs off-track or incurring undue expenses.
This PPT: how Equitas does integrated health and microfinance
This course will inform, engage, and prepare participants who are considering the feasibility and benefits of adding health to microfinance. The training will provide experience-based examples, lessons learned, cost information, and discussion about addressing the link between poverty and ill health without taking MFIs off-track or incurring undue expenses.
This PPT: action planning
This course will inform, engage, and prepare participants who are considering the feasibility and benefits of adding health to microfinance. The training will provide experience-based examples, lessons learned, cost information, and discussion about addressing the link between poverty and ill health without taking MFIs off-track or incurring undue expenses.
This PPT: client testimonies
The document summarizes a market research study conducted with 224 members of Bandhan, a microfinance institution in India. The study found that the most common health issues were cold, cough, fever, gastric problems, and skin diseases. It also found that while government healthcare is preferred, the main barrier to care is inability to pay rather than lack of access. Respondents expressed interest in health savings, education, and loans to pay for emergencies. Based on the findings, Bandhan introduced health education programs and emergency health loans for clients.
This course will inform, engage, and prepare participants who are considering the feasibility and benefits of adding health to microfinance. The training will provide experience-based examples, lessons learned, cost information, and discussion about addressing the link between poverty and ill health without taking MFIs off-track or incurring undue expenses.
This course will inform, engage, and prepare participants who are considering the feasibility and benefits of adding health to microfinance. The training will provide experience-based examples, lessons learned, cost information, and discussion about addressing the link between poverty and ill health without taking MFIs off-track or incurring undue expenses.
This PPT: intro, objectives, and the agenda
This course will inform, engage, and prepare participants who are considering the feasibility and benefits of adding health to microfinance. The training will provide experience-based examples, lessons learned, cost information, and discussion about addressing the link between poverty and ill health without taking MFIs off-track or incurring undue expenses.
This PPT: intro to integrated health and microfinance
This course will inform, engage, and prepare participants who are considering the feasibility and benefits of adding health to microfinance. The training will provide experience-based examples, lessons learned, cost information, and discussion about addressing the link between poverty and ill health without taking MFIs off-track or incurring undue expenses.
This PPT: how and why to do market research
This one-day workshop will introduce the pathway that financial service providers can take to enhance their social performance management (SPM) practices, using the Universal Standards for Social Performance Management (“Universal Standards”) as a framework for improving practice. Case studies and activities will make the day as interactive as possible. The target audience for this workshop is associations and direct service providers.
The day will start by quickly defining SPM and exploring its importance to an institution’s clients and business. Participants will take a deeper look at the Universal Standards and learn how to use the SPI4 Audit Tool to assess their current level of implementation of the Universal Standards. We will also discuss key resources available to help financial service providers institute changes after they assess themselves.
This course will prepare microfinance practitioners to understand and provide financial and non-financial services to rural and urban youth. The course will introduce participants to best practices for serving youth, help them to understand the differences between rural and urban youth financial service provision, and detail specific products and service delivery models. To ground the information in concrete examples, the training will also involve a live case study component, where participants will be able to engage with representatives of financial institutions in the MENA region that are currently offering financial services to youth.
You have helped your clients see themselves and their families in a new light as economic actors. You can do the same for their lives as civic actors. The nations of the world have agreed to the Sustainable Development Goals, goals such as eradicating extreme poverty, eliminating preventable child deaths, and ensuring all children complete secondary school all by 2030. In this training you will learn how to empower your clients to use their voices as citizens on issues that matter in their lives, the lives of community members, and across their nation. By helping clients influence village leaders and members of Parliament through advocacy, we will make the SDGs real.
The document summarizes findings from a research study on financial diaries kept by rural households in Cambodia. It provides context on Cambodia's economy and microfinance sector. The study found that households used a mix of formal and informal financial tools to manage volatile income and expenses. A common informal tool is ROSCAs called "tongtin" which provide savings and credit functions and compete with microfinance institutions. The diaries revealed opportunities for new financial products addressing common shocks as well as a need for financial literacy training to help households avoid over-indebtedness.
This document summarizes a study that examined the impact of financial education and access to savings accounts on youth in Uganda. 240 youth groups were randomly assigned to receive either financial education, access to a group savings account, both, or neither (the control). Results found that financial education significantly increased savings amounts and earned income 1-2 years later, while access to savings accounts had smaller impacts. This suggests that financial education and account access may be substitutes rather than complements in increasing savings behavior and downstream outcomes.
This document summarizes research on a mobile savings product called M-Pasandaz launched in Afghanistan. Key points:
- M-Pasandaz allowed automatic payroll deductions into a mobile money savings account, with options for employer matching contributions.
- A study enrolled 949 employees and randomly assigned them to default enrollment at 5% of salary and different matching contribution levels (0%, 25%, 50%).
- Defaults significantly increased participation rates, with 71-86% of default-enrolled employees participating compared to 1% without defaults. Defaults also led to higher contribution amounts, roughly equivalent to a 50% match.
- The results suggest defaults are an effective way to address procrastination and help people save
This document summarizes preliminary results from a midline survey evaluation of the LISTA project, which aims to provide tablet-based financial education in Colombia. The summary includes:
1) LISTA uses tablets preloaded with financial education modules to potentially provide a scalable solution. 2) The evaluation examines the impact of LISTA on financial literacy, practices, and performance using a randomized controlled research design. 3) Preliminary midline results show some improvements in financial knowledge, savings habits, and reported savings amounts, but no impact yet on all measures.
This document summarizes key findings from a study of financial diaries in Zambia. It discusses how the diaries were used to develop more nuanced market segments based on patterns of income variation, rather than just demographic characteristics. Two examples are given of farmers with different livelihoods but similar income fluctuation patterns. The segments are described and how they differently manage cash flow and finance lump purchases. Insights from the diaries challenge assumptions about use of financial services among the populations studied.
Nathan Were from FINCA presented on their experience partnering with mobile network operators (MNOs) to expand digital financial services in Tanzania. Some key points:
- FINCA launched mobile payments in 2012 with MNO Vodacom and agency banking in 2014. In 2015 they integrated with multiple MNOs including Tigo and Airtel to offer mobile banking.
- Digital channels like agents and mobile banking increased in usage over time, with mobile transactions growing from 26% to 29% of all transactions from January to February 2016.
- Partnering with large MNOs requires cultivating the relationship through dedicated resources and service level agreements to avoid being at a disadvantage.
- Digital
The document discusses assessing the suitability of sites for microenterprises in Bangladesh. It analyzed various physical and economic criteria like distance to markets and roads, land elevation and flooding risk, to classify areas as highly, moderately or marginally suitable for poultry farming. Most unions had large unsuitable areas concentrated in the southeast. Microenterprises in unsuitable sites faced higher costs, lower profits and required greater support. The research findings could help prioritize development efforts and identify low-cost solutions to improve conditions for farmers in unsuitable locations.
The document summarizes the key findings of an independent evaluation of the Asian Development Bank's Microfinance Assistance Program from 2000-2010. The evaluation assessed the performance of ADB's microfinance portfolio in developing sustainable microfinance systems for the poor. It found that while interventions were well-designed, they were less effective at delivering intended results. Program and sector development loans were most effective in improving policies and expanding services, while projects focusing only on credit were less successful. The evaluation also analyzed microfinance clients and impacts in six countries, finding an increase in loans and clients over time but decreasing percentages of women, and limited welfare impacts.
2. Workshop schedule Questions and answers/conclusion 30 12:30 12:00 Mock loan negotiation 30 12:00 11:30 Financing: the specifics of loans 40 11:30 10:50 Coffee break 20 10:50 10:30 BO system demonstration 10 10:30 10:20 Financing: evolution, options and actors 50 10:20 9:30 Introduction to BlueOrchard Finance 10 9:30 9:20 Introduction to course and Expectations 20 9:20 9:00
3. BlueOrchard is a leading commercial microfinance intermediary , providing loans to microfinance institutions through its subsidiary BlueOrchard Finance S.A. and investing in the equity of microfinance institutions and microfinance network funds through its subsidiary BlueOrchard Investments Sàrl. Our mission BlueOrchard’s mission is to empower the poor world-wide and improve their quality of life by promoting income-generating activities through private investments in microfinance Our philosophy We are convinced that microfinance investments can simultaneously produce social progress and financial returns . This is what makes microfinance a powerful tool to sustain economic development and alleviate poverty; as well as an attractive asset class, worthy of inclusion in any diversified investment portfolio strategy. Our approach We provide innovative financial instruments and solutions for placements in microfinance , bridging the gap between capital markets and microfinance institutions. W e generate profitable returns on investments while supporting the development of millions of promising small enterprises. We believe in creating value through solid long-term relationships by providing debt and equity to microfinance institutions in all stages of their development . We share their mission to provide financial services to those who have few resources and excluded from mainstream financial services. We regard our cooperation with them as the primary means to support financial and social integration worldwide. Our values We believe in establishing trust through transparency . We attach high importance to our capacity to innovate . We treasure our integrity and professionalism . We work with zeal and enthusiasm . About BlueOrchard
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5. Situation as of December 2009, figures include both debt and equity placements BlueOrchard office Countries where our exposure is less than 2% of aggregate managed portfolios Countries where our exposure is between 2% and 7% of aggregate managed portfolio Countries where our exposure is over 7% of aggregate managed portfolio BlueOrchard’s global reach
8. Various options for financing Senior Unsecured Debt Subordinated Debt Senior Secured Debt Deposits Debt Preferred Shares Common Shares Equity Risk to investors Cost to MFI
9. Choosing financing: what type of loan? Term Loans: Fixed maturity loan, often with an amortization schedule Senior Secured: Medium term (~1-3 years), with collateral Senior Unsecured: Medium term (~1-3 years), no collateral Subordinated: Long term (~5-10 years), no collateral Revolving Credit/Credit Lines: For seasonal demand/ liquidity crunch; ability to borrow and repay repeatedly up to the agreed limit
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11. Domestic vs. international markets International Markets Domestic Markets MFI Funding Source of Slide: MicroRate – Review of Microfinance Investment Vehicle Market (October 23, 2006) Microfinance Investment Vehicles MIVs Development Agencies, Foundations & NGOs acting as investors in microfinance Regional Banks - local and second tier Private local investors Private, Social, Commercial, Institutional Investors
12. Microfinance institutions: different levels of maturity today - promising perspective for tomorrow Tier1 Tier 2 Tier 3 Tier 1: solid, well managed, profitable, fast growing microfinance institutions Tier 2: promising, transforming and growing microfinance institutions Tier 3: Start-ups, NGO, small scale, niche player microfinance institutions
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14. Investment Process Risk Management STEP 2 Due Diligence STEP 3 Risk Scoring STEP 4 Portfolio Management STEP 1 Qualification of new Investments BlueOrchard’s 4-step investment process and risk management
15. STEP1 & 2 Qualification of Invest. & DD Comprehensive data collection and on-site due diligence visits Audited financial statements of previous 3 years Business Plan External rating reports MFIs eligibility criteria 3 year track record Total assets > $1 MN Operational self-sustainability Profitability Acceptable credit risk Investments are considered within the context of the Country Risk Profile STEP 3 Risk Scoring STEP 4 Portfolio Management BlueOrchard’s internal rating 24 quantitative and qualitative factors, including the following: Quality of management Strategy and business plan Corporate governance Transparency Staff and organizational infrastructure Liquidity and funding Currency management Balance sheet ratios Profitability Loan portfolio management Social impact BlueOrchard’s Credit Committee Loan proposal submitted to credit committee: Review of the MFI’s business strategy, financial record, past results and other critical factors relevant to the credit decision Decision on interest rate and loan terms Portfolio management Loans to MFIs are considered within the context of appropriate diversification limits and impact on overall portfolio return and risk BlueOrchard’s 4-step investment process and risk management
Debt financing - borrowing money from a lender or investor with the understanding that the full amount will be repaid in the future, usually with interest. Equity financing - investors receive partial ownership in the company in exchange for their funds—does not have to be repaid. In most cases, debt financing does not include any provision for ownership of the company (although some types of debt are convertible to equity). Instead, small businesses that employ debt financing accept a direct obligation to repay the funds within a certain period of time. The interest rate charged on the borrowed funds reflects the level of risk that the lender undertakes by providing the money. For example, a lender might charge a startup company a higher interest rate than it would a company that had shown a profit for several years. Since lenders are paid off before owners in the event of business liquidation, debt financing entails less risk than equity financing and thus usually commands a lower return. Though there are several possible methods of debt financing available to small businesses—including private placement of bonds, convertible debentures, industrial development bonds, and leveraged buyouts—by far the most common type of debt financing is a regular loan. Loans can be classified as long-term (with a maturity longer than one year), short-term (with a maturity shorter than two years), or a credit line (for more immediate borrowing needs). They can be endorsed by co-signers, guaranteed by the government, or secured by collateral—such as real estate, accounts receivable, inventory, savings, life insurance, stocks and bonds, or the item purchased with the loan.
Advantages Disadvantages Private market Faster More expensive Less disclosure than public offering More restrictive covenants Less legal liability risk Less market visibility for MFI More accessible (historically) for MFIs Public market More liquidity Disclosure requirement more onerous Cheaper Legal liability risk greater Greater market visibility Slower to issue More difficult to restructure or renegotiate terms
Fixed uniform interest rate, established at the commencement of the loan, which stays in effect throughout the life of the loan. Floating interest: reset at specified intervals, usually by reference to a market indicator in the domestic or international borrowing markets.