Lending unit 6
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This document discusses lending in the banking business. It covers general principles of good lending, the typical banking lending cycle, and key remedies for defaulting borrowers such as insolvency, receivership, and their effects. Specifically, it examines various types of securities and collateral that banks can take to secure advances or loans made to customers. These include mortgages on land and buildings, chattel mortgages on movable assets, guarantees, cash collateral from deposits, loan and property insurance, post-dated cheques, and group co-guarantees among microfinance borrowers.
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Lending unit 7
This document discusses lending in the banking business. It covers general principles of good lending, the typical lending cycle, and remedies for defaulting borrowers. Delinquency or default refers to a borrower failing to pay installments on time. Causes of delinquency include inability to pay, business failure, adverse economic conditions, willful default, death, inappropriate loan terms, and bankruptcy. Managing delinquency involves preventing late payments through proper underwriting and tailoring loans to borrowers' needs. It also involves solving existing delinquencies through measures ranging from contact and rescheduling to seizing and selling collateral.
Role of bank in today's world
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This document discusses different types of loans and mortgages from the perspective of customers and banks. It defines loans and differentiates between secured and unsecured loans. It explains how interest rates affect monthly payments and payoff periods. It discusses reasons why companies may need loans and describes the amortization of loans. It also outlines the process of opening bank credit, factors that influence credit approval, and types of credit commitments banks provide including guarantees. The document further explains mortgage contracts, different types of leasing agreements including operating and financial leases, and real estate lease-back arrangements.
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The document discusses securitization and asset reconstruction in India. It explains that under Section 5 of the Securitisation and Reconstruction of Financial Assets and Enforcement Security Interest Act,2002, only banks and financial institutions can securitize their financial assets. It provides an example of how a bank XYZ securitizes its loan assets by transferring them to a special purpose vehicle (SPV) to free up its blocked funds. The SPV then issues securities to investors to raise funds that are passed back to the bank. This allows the bank to raise cheaper funds than through corporate debt.
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We at bankinstruments issue our #LeaseBankDrafts through the World Top 100 banks and utilize the SWIFT framework for delivery.
Securitization of debts
Securitization is a process where illiquid assets like loans are transferred to a special purpose vehicle that issues tradable securities to investors. This allows originators to remove assets from their balance sheets, reducing capital requirements and releasing cash. The SRFAESI Act of 2002 gave banks powers to take possession of defaulted assets like land, buildings, and machinery. It also established Asset Reconstruction Companies to help banks recover dues from borrowers and manage repossessed properties. The Act aims to facilitate a faster recovery process for non-performing assets without court intervention.
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The document discusses banking operations including balance sheets, sources of funds, investment policies, types of investments, loans and securities. It explains that a balance sheet summarizes a bank's assets, liabilities, and shareholder equity. It also discusses the different sources of funds for banks, their investment approaches, categories of investments including non-profitable and profitable, types of loans and securities taken for loans.
Cataluña financial intutions
Savings accounts allow customers to set aside money and earn interest while maintaining liquidity. Money in savings accounts may not require reserves from banks and can be lent out. Withdrawals sometimes incur fees, though most savings accounts do not limit withdrawals like certificates of deposit. Checking accounts are transactional accounts that allow liquid withdrawals and deposits through various methods, but do not earn high interest rates. Mortgages are loans secured by real estate that must be paid back with interest over time through scheduled payments. Certificates of deposit are interest-bearing savings certificates with fixed maturity dates and interest rates.
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Lending unit 7
This document discusses lending in the banking business. It covers general principles of good lending, the typical lending cycle, and remedies for defaulting borrowers. Delinquency or default refers to a borrower failing to pay installments on time. Causes of delinquency include inability to pay, business failure, adverse economic conditions, willful default, death, inappropriate loan terms, and bankruptcy. Managing delinquency involves preventing late payments through proper underwriting and tailoring loans to borrowers' needs. It also involves solving existing delinquencies through measures ranging from contact and rescheduling to seizing and selling collateral.
Role of bank in today's world
Role of bank in today's world workshop, Financial literacy, Erasmus+ project New Literacy Set, 2015-2017
Loans and mortgages
This document discusses different types of loans and mortgages from the perspective of customers and banks. It defines loans and differentiates between secured and unsecured loans. It explains how interest rates affect monthly payments and payoff periods. It discusses reasons why companies may need loans and describes the amortization of loans. It also outlines the process of opening bank credit, factors that influence credit approval, and types of credit commitments banks provide including guarantees. The document further explains mortgage contracts, different types of leasing agreements including operating and financial leases, and real estate lease-back arrangements.
Section 5 of the securitisation and reconstruction of
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What is lease bank draft
We at bankinstruments issue our #LeaseBankDrafts through the World Top 100 banks and utilize the SWIFT framework for delivery.
Securitization of debts
Securitization is a process where illiquid assets like loans are transferred to a special purpose vehicle that issues tradable securities to investors. This allows originators to remove assets from their balance sheets, reducing capital requirements and releasing cash. The SRFAESI Act of 2002 gave banks powers to take possession of defaulted assets like land, buildings, and machinery. It also established Asset Reconstruction Companies to help banks recover dues from borrowers and manage repossessed properties. The Act aims to facilitate a faster recovery process for non-performing assets without court intervention.
Banking operations
The document discusses banking operations including balance sheets, sources of funds, investment policies, types of investments, loans and securities. It explains that a balance sheet summarizes a bank's assets, liabilities, and shareholder equity. It also discusses the different sources of funds for banks, their investment approaches, categories of investments including non-profitable and profitable, types of loans and securities taken for loans.
Cataluña financial intutions
Savings accounts allow customers to set aside money and earn interest while maintaining liquidity. Money in savings accounts may not require reserves from banks and can be lent out. Withdrawals sometimes incur fees, though most savings accounts do not limit withdrawals like certificates of deposit. Checking accounts are transactional accounts that allow liquid withdrawals and deposits through various methods, but do not earn high interest rates. Mortgages are loans secured by real estate that must be paid back with interest over time through scheduled payments. Certificates of deposit are interest-bearing savings certificates with fixed maturity dates and interest rates.
Stand-by Letter of Credit: the middle earth of trade finance (executive summary)
Many people regard standby letters of credit as not being proper documentary credits, which is partly justified they are used in the same way as a bank guarantee but, like commercial credits, are subject to the international rules and any existing legislation pertaining to documentary credits.
The main difference between a commercial credit and a standby letter of credit is that a commercial credit is expected to be used according to its purpose, that is to act as a means of channelling documents and payment between the Buyer and the Seller. Like a guarantee, a standby is not supposed to be used, unless the parties fail to perform their obligations: that is why it can be defined as a bank guarantee taking the shape of a documentary credit and being subject to the UCP rules.
Securitization
Securitization involves pooling financial assets like loans and converting them into marketable securities. Key players include originators who make the original loans, special purpose entities that purchase the loans and issue securities, credit rating agencies that rate the securities, underwriters that help issue the securities, trustees that ensure obligations are fulfilled, servicers that collect loan payments, and investors who purchase the securities. SPVs play an intermediary role by holding the pooled securities and allowing risk sharing. Banks securitize to diversify risk, generate liquid assets, extend their credit pool, and earn fee income, while investors can earn higher returns through a diversified portfolio. However, prepayments and floating rates may impact returns, and maintenance obligations and regulator concerns about under
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Savings accounts allow customers to earn interest on deposited funds that cannot be immediately withdrawn, checking accounts provide federally-insured transaction services using checks, debit cards or ATMs, mortgages are loans secured by real property interests, and certificates of deposit are time-bound savings deposits that offer higher interest rates than regular savings accounts.
Functions of commercial Bank
This document outlines the key functions of commercial banks which include accepting deposits, advancing loans, credit collection, investing funds, and providing agency services. It describes the primary, secondary, and general utility functions of banks. The primary functions are accepting deposits through savings, current, and fixed deposit accounts, and advancing loans through various types of loans like cash credit, overdraft, demand loans, and bill discounting. Secondary functions involve credit collection, foreign exchange dealings, and acting as trustees. General utility services include locker facilities, traveler's checks, credit information, and underwriting services.
Slidecasttest
Bank sources of funds include capital notes and bonds, as well as bank capital accounts. Bank capital accounts serve as an equity base for deposits, and act as a residual source of funds from shareholders that is used to absorb losses and protect depositors.
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The document outlines principles of sound lending for banks. The key principles discussed are safety, liquidity, profitability, purpose of the loan, diversification of risk, and national policies. Safety means ensuring the borrower has the capacity and willingness to repay the loan. Liquidity means making mostly short-term loans as banks deal in short-term funds. Profitability means employing funds profitably while maintaining safety and liquidity. The purpose of the loan should be productive to generate profits for repayment. Risk is reduced through diversifying loans across multiple borrowers rather than concentrating in one. National policies also guide bank lending decisions.
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*** WARNING *** Be advised we report all fraud activities and attempt to commit crimes to INTERPOL, FBI, CIA, IC3, US Treasury Dept., Fin CEN, SEC, Federal Reserve, ICC Commercial Crime Services, RCMP, New Scotland Yard, City of London Fraud Squad, Crime Stoppers International, &/or Homeland Security. *** WARNING *** this communication contains CONFIDENTIAL information. If you are not the intended recipient or believe that you may have received this communication in error, please reply to the sender indicating that fact and DELETE the copy you received. In addition, you should NOT print, copy, re-transmit, disseminate, or otherwise use the information. *** Legal Disclaimer*** : Sender declares that he is not a licensed United States Securities broker or Dealer or U.S. investment advisor, nor the United States licensed Lender or Provider or licensed Agent offering licensed product or services, and both parties declare that this e-mail is not intended for the buying, selling, or trading or securities, or the offering of counsel or advice with respect to any such activities. **By accepting and opening this e-mail, you have agreed to a binding non-disclosure & non-circumvent that ensures complete confidentiality between the reader and creator of the contents/attachments presented in this e-mail, which further prohibits any promotion, discussion, replication or additions without the consent of OpuFundHoldings International Limited. **The content of this e-mail does NOT constitute a contract of services or promise of services or investment or promised investment capital toward any concept, idea or project referenced or directly addressed in the body or relating portions of this e-mail. This e-mail is merely designed as an exchange of ideas. ** This email transmission and any attachments are for the sole use of the intended recipient(s) and may contain confidential and privileged information that is the sole property of OpuFundHoldings International Limited. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender and destroy and delete all copies of this email and any attachments. These Confidential communications are protected under Gramm-Leach-Bailey Act 15 USC, Subchapter 1, sections 6801-6809 and other laws addressing the disclosure of Non-Public Personal Information. Also see: http://www.ftc.gov/privacy/glbact/glbsub1.htmGramm-Leach-Bliley Act 15 USC, Subchapter 1, Sec. 6801-68
11.1 credit default swaps
A single name credit default swap (CDS) provides default insurance for an investor's holdings of a reference debt. The protection buyer makes regular premium payments to the protection seller and receives compensation equal to the loss on the reference debt if it defaults. A portfolio with a reference debt and its corresponding single name CDS is similar to a risk-free security. The short position of a single name CDS is equivalent to being long the reference debt and short a risk-free security. Single name CDSs are the simplest credit instruments and serve as building blocks for other derivatives.
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The presentation explains the concept of banking and its lending system. Different types of credit facilities as well as principles of sound lending are also discussed.
FDIC Insurance Explained
The Federal Deposit Insurance Corporation (FDIC) insures consumer bank deposits up to $250,000 per depositor, per insured bank, in case of bank failure. As an independent U.S. government agency, the FDIC has protected deposits since 1933 without failure. Global Client Solutions provides a dedicated account service for debt repayment that features FDIC insurance, ensuring consumer savings are protected even if the bank collapses.
Securitization of debt
This document provides an overview of securitization of debt. It defines securitization as the conversion of future cash flows from financial assets like loans into tradable securities that can be sold in the market. This process allows lenders to raise funds. A special purpose vehicle (SPV) is used as an intermediary between the originator of assets and investors. The SPV issues different types of securities backed by assets like mortgages (MBS), consumer debt (ABS), and corporate debt (CDO). The document discusses the key features and types of securitizable assets in securitization.
Securitisation
Securitization is the process conversion of receivables and cash flow generated from a collection or pool of financial assets like mortgage loans, auto loans, credit card receivables etc into the marketable securities.
Slc isbp-bpo
Standby letters of credit (SLCs) are used similarly to guarantees in countries where banks cannot legally issue guarantees. An SLC requires the issuer bank to pay the beneficiary before the SLC expires if the applicant fails to pay or perform. The beneficiary receives payment when the applicant defaults. SLCs can act as advance payment guarantees, performance guarantees, or secure payment of outstanding invoices. SLCs are subject to rules under the Uniform Customs and Practice for Documentary Credits or the International Standby Practices publication.
Banker and Customer
The document defines key terms related to banking. It describes banking as accepting deposits from the public that are repayable on demand, and lending or investing that money. A customer is a person who has a bank account and the bank provides regular banking services to them. The relationship between a banker and customer involves different roles - as debtor and creditor based on accounts, as trustee for certain transactions, and as an agent when performing services for the customer like collecting checks. Bankers have obligations to honor customers' checks if certain conditions are met, and to maintain secrecy of customer accounts with some reasonable exceptions.
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1) An originator signs a forward Ijarah contract with a customer and an Istisna' contract with an SPV to construct an asset for the customer.
2) The SPV subcontracts construction and packages the Istisna' asset into SUKUK units, which are rated and issued to investors.
3) Investors' subscriptions provide cash to the SPV, which pays the contractor to construct the asset and deliver it to the originator and customer. The customer then makes periodic payments to the SPV, which distributes returns to investors
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The document discusses securitization and mortgage loans. Securitization is the process of converting assets like mortgage loans into marketable securities that can be sold to investors. It allows banks to raise funds by pooling and repackaging their loans. The key aspects covered are the definition of securitization, the players involved like originators and SPVs, the securitization process, and some benefits like improving capital adequacy and providing an alternative funding source for banks. Examples of major mortgage companies in India and securitization companies are also provided.
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This document provides an overview of year-end adjustments and provisions for financial reporting. It discusses the rationale for provisions including typical provisions like provisions for bad and doubtful debts. It provides guidelines for classifying and provisioning loans based on days past due. It also covers accounting treatments for prepayments, accrued expenses, balancing off accounts, and preparing a trial balance. Key steps in the accounting process like debiting expenses and crediting provisions are summarized.
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Stand-by Letter of Credit: the middle earth of trade finance (executive summary)
Many people regard standby letters of credit as not being proper documentary credits, which is partly justified they are used in the same way as a bank guarantee but, like commercial credits, are subject to the international rules and any existing legislation pertaining to documentary credits.
The main difference between a commercial credit and a standby letter of credit is that a commercial credit is expected to be used according to its purpose, that is to act as a means of channelling documents and payment between the Buyer and the Seller. Like a guarantee, a standby is not supposed to be used, unless the parties fail to perform their obligations: that is why it can be defined as a bank guarantee taking the shape of a documentary credit and being subject to the UCP rules.
Securitization
Securitization involves pooling financial assets like loans and converting them into marketable securities. Key players include originators who make the original loans, special purpose entities that purchase the loans and issue securities, credit rating agencies that rate the securities, underwriters that help issue the securities, trustees that ensure obligations are fulfilled, servicers that collect loan payments, and investors who purchase the securities. SPVs play an intermediary role by holding the pooled securities and allowing risk sharing. Banks securitize to diversify risk, generate liquid assets, extend their credit pool, and earn fee income, while investors can earn higher returns through a diversified portfolio. However, prepayments and floating rates may impact returns, and maintenance obligations and regulator concerns about under
Financial institution
Savings accounts allow customers to earn interest on deposited funds that cannot be immediately withdrawn, checking accounts provide federally-insured transaction services using checks, debit cards or ATMs, mortgages are loans secured by real property interests, and certificates of deposit are time-bound savings deposits that offer higher interest rates than regular savings accounts.
Functions of commercial Bank
This document outlines the key functions of commercial banks which include accepting deposits, advancing loans, credit collection, investing funds, and providing agency services. It describes the primary, secondary, and general utility functions of banks. The primary functions are accepting deposits through savings, current, and fixed deposit accounts, and advancing loans through various types of loans like cash credit, overdraft, demand loans, and bill discounting. Secondary functions involve credit collection, foreign exchange dealings, and acting as trustees. General utility services include locker facilities, traveler's checks, credit information, and underwriting services.
Slidecasttest
Bank sources of funds include capital notes and bonds, as well as bank capital accounts. Bank capital accounts serve as an equity base for deposits, and act as a residual source of funds from shareholders that is used to absorb losses and protect depositors.
Bank lending and principles of sound lending
The document outlines principles of sound lending for banks. The key principles discussed are safety, liquidity, profitability, purpose of the loan, diversification of risk, and national policies. Safety means ensuring the borrower has the capacity and willingness to repay the loan. Liquidity means making mostly short-term loans as banks deal in short-term funds. Profitability means employing funds profitably while maintaining safety and liquidity. The purpose of the loan should be productive to generate profits for repayment. Risk is reduced through diversifying loans across multiple borrowers rather than concentrating in one. National policies also guide bank lending decisions.
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Topics include beating the bank in bankruptcy, post-petition debtor in possession, and financing and the use of cash collateral.
Non Recourse Project Funding at OpuFund
*** WARNING *** Be advised we report all fraud activities and attempt to commit crimes to INTERPOL, FBI, CIA, IC3, US Treasury Dept., Fin CEN, SEC, Federal Reserve, ICC Commercial Crime Services, RCMP, New Scotland Yard, City of London Fraud Squad, Crime Stoppers International, &/or Homeland Security. *** WARNING *** this communication contains CONFIDENTIAL information. If you are not the intended recipient or believe that you may have received this communication in error, please reply to the sender indicating that fact and DELETE the copy you received. In addition, you should NOT print, copy, re-transmit, disseminate, or otherwise use the information. *** Legal Disclaimer*** : Sender declares that he is not a licensed United States Securities broker or Dealer or U.S. investment advisor, nor the United States licensed Lender or Provider or licensed Agent offering licensed product or services, and both parties declare that this e-mail is not intended for the buying, selling, or trading or securities, or the offering of counsel or advice with respect to any such activities. **By accepting and opening this e-mail, you have agreed to a binding non-disclosure & non-circumvent that ensures complete confidentiality between the reader and creator of the contents/attachments presented in this e-mail, which further prohibits any promotion, discussion, replication or additions without the consent of OpuFundHoldings International Limited. **The content of this e-mail does NOT constitute a contract of services or promise of services or investment or promised investment capital toward any concept, idea or project referenced or directly addressed in the body or relating portions of this e-mail. This e-mail is merely designed as an exchange of ideas. ** This email transmission and any attachments are for the sole use of the intended recipient(s) and may contain confidential and privileged information that is the sole property of OpuFundHoldings International Limited. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender and destroy and delete all copies of this email and any attachments. These Confidential communications are protected under Gramm-Leach-Bailey Act 15 USC, Subchapter 1, sections 6801-6809 and other laws addressing the disclosure of Non-Public Personal Information. Also see: http://www.ftc.gov/privacy/glbact/glbsub1.htmGramm-Leach-Bliley Act 15 USC, Subchapter 1, Sec. 6801-68
11.1 credit default swaps
A single name credit default swap (CDS) provides default insurance for an investor's holdings of a reference debt. The protection buyer makes regular premium payments to the protection seller and receives compensation equal to the loss on the reference debt if it defaults. A portfolio with a reference debt and its corresponding single name CDS is similar to a risk-free security. The short position of a single name CDS is equivalent to being long the reference debt and short a risk-free security. Single name CDSs are the simplest credit instruments and serve as building blocks for other derivatives.
Bank lending system
The presentation explains the concept of banking and its lending system. Different types of credit facilities as well as principles of sound lending are also discussed.
FDIC Insurance Explained
The Federal Deposit Insurance Corporation (FDIC) insures consumer bank deposits up to $250,000 per depositor, per insured bank, in case of bank failure. As an independent U.S. government agency, the FDIC has protected deposits since 1933 without failure. Global Client Solutions provides a dedicated account service for debt repayment that features FDIC insurance, ensuring consumer savings are protected even if the bank collapses.
Securitization of debt
This document provides an overview of securitization of debt. It defines securitization as the conversion of future cash flows from financial assets like loans into tradable securities that can be sold in the market. This process allows lenders to raise funds. A special purpose vehicle (SPV) is used as an intermediary between the originator of assets and investors. The SPV issues different types of securities backed by assets like mortgages (MBS), consumer debt (ABS), and corporate debt (CDO). The document discusses the key features and types of securitizable assets in securitization.
Securitisation
Securitization is the process conversion of receivables and cash flow generated from a collection or pool of financial assets like mortgage loans, auto loans, credit card receivables etc into the marketable securities.
Slc isbp-bpo
Standby letters of credit (SLCs) are used similarly to guarantees in countries where banks cannot legally issue guarantees. An SLC requires the issuer bank to pay the beneficiary before the SLC expires if the applicant fails to pay or perform. The beneficiary receives payment when the applicant defaults. SLCs can act as advance payment guarantees, performance guarantees, or secure payment of outstanding invoices. SLCs are subject to rules under the Uniform Customs and Practice for Documentary Credits or the International Standby Practices publication.
Banker and Customer
The document defines key terms related to banking. It describes banking as accepting deposits from the public that are repayable on demand, and lending or investing that money. A customer is a person who has a bank account and the bank provides regular banking services to them. The relationship between a banker and customer involves different roles - as debtor and creditor based on accounts, as trustee for certain transactions, and as an agent when performing services for the customer like collecting checks. Bankers have obligations to honor customers' checks if certain conditions are met, and to maintain secrecy of customer accounts with some reasonable exceptions.
Bridge finance
Borrowers looking for bridging finance solutions from GCC are conveyed the ideal item for their requirements – regardless of what their monetary circumstance. We help borrowers comprehend the key contemplations and difficulties, while giving the certainty and the moneylender expected to guarantee the best outcome.
Alhuda CIBE - Istisna Ijarah Sukuk Structure
This document outlines the structure of an Istisna' - Ijarah SUKUK transaction. The key steps are:
1) An originator signs a forward Ijarah contract with a customer and an Istisna' contract with an SPV to construct an asset for the customer.
2) The SPV subcontracts construction and packages the Istisna' asset into SUKUK units, which are rated and issued to investors.
3) Investors' subscriptions provide cash to the SPV, which pays the contractor to construct the asset and deliver it to the originator and customer. The customer then makes periodic payments to the SPV, which distributes returns to investors
securtization & mortgage loans
The document discusses securitization and mortgage loans. Securitization is the process of converting assets like mortgage loans into marketable securities that can be sold to investors. It allows banks to raise funds by pooling and repackaging their loans. The key aspects covered are the definition of securitization, the players involved like originators and SPVs, the securitization process, and some benefits like improving capital adequacy and providing an alternative funding source for banks. Examples of major mortgage companies in India and securitization companies are also provided.
How Federal Deposit Insurance Works
The FDIC was created in the 1930s to insure bank deposits in response to bank failures during the Great Depression. Banks pay fees to the FDIC for deposit insurance that protects customers' money up to $250,000 if their bank fails. Customers look for the FDIC seal of approval when opening bank accounts because it provides assurance that their money is safe.
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This document discusses business banking and outlines the learning objectives of Module 4. It will define business customers and their common banking needs, explain types of lending in foreign business transactions and to the agricultural and construction sectors, discuss main forms of business finance in Uganda, and correlate business practices to current situations in the country. The module will cover understanding business customers and their needs, assessing customer needs, lending in different contexts, and alternative sources of business finance. It provides an overview of different types of businesses and their typical financing needs, such as short-term loans, overdrafts, and term loans for working capital and fixed assets.
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This document provides an overview of year-end adjustments and provisions for financial reporting. It discusses the rationale for provisions including typical provisions like provisions for bad and doubtful debts. It provides guidelines for classifying and provisioning loans based on days past due. It also covers accounting treatments for prepayments, accrued expenses, balancing off accounts, and preparing a trial balance. Key steps in the accounting process like debiting expenses and crediting provisions are summarized.
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The document discusses international trade and regional economic integration in Africa. It provides details on several major regional economic communities in Africa, including COMESA and the East African Community (EAC). COMESA aims to promote economic development and trade by removing barriers between countries in Eastern and Southern Africa. The EAC seeks similar goals among East African countries by establishing a customs union and common market to boost trade and investment. Both organizations aim to advance economic and political integration among their member states in multiple stages, from free trade areas to possible future monetary unions and political federations.
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The document discusses lending, insolvency, receivership, and bankruptcy from the perspective of banks and lenders. It covers the typical lending cycle and key issues at each stage. Acts of bankruptcy under Ugandan law are outlined, including conveyance of property to trustees or fraudulent transfers. The implications of receivership are summarized, such as the receiver taking charge of the borrower's affairs and replacing management. Finally, the duties of a receiver and effects of bankruptcy are briefly explained, such as proof of debts by creditors and priority of certain debt types in distribution of the bankrupt's property.
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This document discusses alternative sources of business finance, including lending in foreign business transactions. It provides guidance on assessing whether to lend in local or foreign currency depending on the nature of the transaction and risks. Specifically, it recommends lending in foreign currency for businesses that earn/sell in that currency, and lending in local currency for businesses earning/selling locally to mitigate foreign exchange volatility. The document also describes onshore and offshore financing options, with offshore referring to banks outside the country financing without branches in that country.
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This document discusses customer relationship management and customer service. It provides 10 tips for approaching customers, emphasizing respect, listening, and focusing on solutions. It also discusses the importance of regular customer contact and understanding the customer, their needs, and how to exceed their expectations through reliability, accessibility, responsiveness, respect and credibility. Customer contact should involve the customer, the employee, and the organization to build long-term loyalty.
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The document provides an overview of an introductory insurance course. It outlines the learning objectives which are to gain an understanding of risk and insurance, appreciate insurance's role in the economy, and understand how insurance industry players work together. It then covers key insurance concepts like definition of insurance, risk management, insurance principles, categories of insurance such as property and liability, and roles of industry players.
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The document discusses the nature of the banker-customer relationship. It defines a bank and customer, and outlines the different types of relationships that can exist such as debtor-creditor, trustee, and agent-principal. The relationship is built on trust and is fiduciary in nature. The duties of both the banker and customer are explained, including maintaining secrecy of customer information and accounts. Exceptions when secrecy can be ignored are also detailed. The document covers account opening and closing procedures.
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The document discusses the principles of good lending practices for banks. It outlines that banks should practice prudence, have good internal lending processes, and provide efficient customer service. Specifically, it states that banks should carefully evaluate borrowers' viability and repayment ability rather than focusing solely on security. It also advocates for risk diversification, clear credit policies, and timely communication with borrowers. The goal of lending is to provide loans and receive deposits, so banks should avoid overreliance on seizing collateral which can be counterproductive.
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The document discusses lending in the banking business and concepts related to insolvency. It begins by outlining the learning outcomes which are to articulate the role of lending, discuss the bank lending cycle, and explain insolvency, bankruptcy, and receivership. It then provides definitions of key terms like insolvency, receivership, and bankruptcy. Finally, it lists 11 signs that can indicate a business or individual is insolvent, such as continuing losses, current liabilities exceeding assets, unpaid taxes, and suppliers requiring cash-on-delivery or special payments. The document aims to explain these lending and insolvency concepts to banking and financial services students.
Sonu74
1. A bank guarantee is a written contract issued by a bank on behalf of a customer, where the bank takes responsibility for payment of a sum of money if the customer does not pay. The bank charges a commission for issuing the guarantee.
2. Bank guarantees provide benefits for both governments and private sectors. For governments, it increases private financing for infrastructure and reduces government risk exposure. For private sectors, it reduces risks and opens new markets.
3. There are different types of bank guarantees including direct/indirect guarantees, confirmed guarantees, tender bonds, performance bonds, rental guarantees, and credit card guarantees which are used for various commercial purposes.
Lending unit 3
This document discusses various types of lending provided by banks. It begins by outlining the learning outcomes which are to articulate the role of lending in banking, discuss the bank lending cycle, and explain insolvency, bankruptcy and receivership from the lender's viewpoint. The document then covers general principles of lending, the lending process, types of advances like overdrafts, personal and business loans both short and long term, mortgages, leasing, and bill discounting. It provides details on each type of lending product.
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This document discusses different types of lending in the banking business. It defines corporate lending as lending to companies and institutions that are separate legal entities, while retail lending refers to lending to individuals and small businesses. The key differences between corporate and retail lending are loan amounts, who signs contracts and bears liability, and complexity. Requirements for corporate lending include the company being incorporated and having authority to borrow, while requirements for retail lending include the borrower being an adult of sound mind and having debt repayment capacity. Mortgage lending is also discussed as a specialized type of lending secured by property.
Bwrr3063 topic 08b_credit_derivatives
This document discusses credit derivatives, including credit default swaps (CDS), total return swaps (TRS), and credit-linked notes (CLN). It defines credit derivatives as financial instruments that transfer credit risk of an underlying asset to a third party. The key types of credit derivatives - CDS, TRS, and CLN - are described. CDS allow parties to transfer default risk, while TRS transfers both credit and market risk without transferring the asset. CLN are notes whose payments are linked to certain credit events. Uses for credit derivatives by banks include hedging credit risk and reducing balance sheet risk concentrations.
Revisiting A Panicked Securitization Market
With the passage of Finance Bill 2013 on April 30 in Lok Sabha proposing to Levy a 30% distribution tax on the investors in securitization deals through special purpose vehicles, there is a stir in the securitization market. The principal investors (banks) were paying the tax on their net income from the securitization transaction through SPVs. Now, they will be taxed on the gross income as per the new Finance Bill. The new securitization guidelines issued in May 2012 dipped the volume of fresh issue to Rs. 28,400 crore from Rs. 44,500 crore in the preceding fiscal.
Questions
Goodwill arises when a company acquires another company at a price higher than the fair market value of its tangible and identifiable intangible assets. It represents the future economic benefits from assets that are not individually identified and separately recognized. Goodwill is an intangible asset that is reported on the acquiring company's balance sheet.
a-study-on-loans-and-advances-by-rohit-r.pdf
This document provides an overview of loans and advances offered by commercial banks. It defines loans as amounts borrowed that are intended to be repaid over time, while advances are short-term credit facilities repaid within one year. Loans and advances help meet both short-term working capital needs as well as long-term needs through products like cash credits, overdrafts, and term loans. Banks also lend money by discounting bills of exchange. To ensure repayment, banks typically require security in the form of tangible assets pledged by the borrower.
Banking financial service management
This document provides an overview of bank investment and lending functions. It discusses how banks apply their funds through statutory liquidity ratio investments, non-SLR investments, and lending. Lending includes various types of loans like cash credit, overdrafts, and bill discounting. It also discusses non-fund based lending through bank guarantees and letters of credit. Asset-based lending is described as using collateral like projects, receivables, or securities to secure loans.
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This document summarizes key concepts related to financial credit and risk analytics from a course on the subject. It defines credit as a promise of future payment for resources provided now. It describes the main types of credit as loans, trade credit, consumer credit, bank credit, revolving credit, open credit, installment credit, mutual credit, and service credit. It defines credit risk as the risk of a borrower defaulting and discusses how creditworthiness is measured using factors like character, capacity, capital, collateral and conditions. It also describes the credit market where large companies issue bonds that individual and institutional investors can purchase, and how credit rating agencies assess and rate the creditworthiness of issuers. The document concludes by identifying default risk
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This document provides an overview of a module on introduction to insurance. The module aims to help students gain a broader understanding of risk and insurance as a means to manage risk. It will provide an appreciation of the role of insurance in the economy and how it operates. Students will learn about the fundamental principles of insurance, key terms, roles of industry players, and how claims are administered. The module will cover topics such as risk management, the purpose of insurance, how insurance works, underwriting categories and processes, insurance principles, terminology, and claims settlement.
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This document provides an overview of financial services and institutions in Pakistan. It discusses various types of financial intermediaries and the structure of Pakistan's banking sector. It also summarizes various banking services including universal banking, correspondent banking, retail banking, private banking, loan syndication, bridging loans, credit cards, and consumer credit. Additionally, it covers credit rating agencies and the credit rating process, money laundering, merchant banking, underwriting, stock brokers, development financial institutions, venture capital, private equity, and other financial concepts.
Why might a bank securitise some of its loans
The document discusses why a bank might choose to securitize some of its loans. There are four key motives for a bank to securitize loans: 1) to manage its balance sheet by transforming illiquid loans into liquid assets that can be used to acquire other types of assets, 2) to ease capital constraints and improve capital ratios by removing loans from its balance sheet 3) to generate fee income by selling loans to SPVs and investors, and 4) to widen its funding sources by issuing securities that are more attractive to certain investors. However, excessive reliance on securitization contributed to the financial crisis, as it encouraged risky lending and moral hazard by banks that believed risk had been fully transferred when it actually remained.
st02728.ppt
This document discusses loan sales and securitization. It defines loan sales and the different types of loan sale contracts like participations and assignments. It also discusses the various buyers and sellers of loans. The document then discusses securitization, defining it as packaging and selling loans and other assets backed by securities. It provides examples of different types of securitizations like pass-through securities, collateralized mortgage obligations (CMOs), and mortgage-backed bonds (MBBs). It provides examples to illustrate how these different securitization structures work.
01.1 credit risk factors and measures
Credit risk is the largest risk exposure for banks and critical to manage successfully. This document discusses credit risk factors and measures under the Basel III framework. It introduces key concepts like credit, default risk, and risk measures. It explains that lending is core to banks' business and how they generate profits through interest rates spreads. It also defines credit, the time value of money, default, and credit risk. Finally, it outlines that credit risk management under Basel III comprises four main building blocks: risk identification, measurement, monitoring and control, and mitigation.
Bank operations
Banks play a crucial role in any economy by channeling savings into investments. They accept deposits and make loans. Banks create money through the multiplier effect by lending out deposits while keeping only a fraction in reserves. They earn profits from interest rate spreads on loans and fees. Banks come in many types based on ownership, function, and scope. They are made up of departments like credit, which analyzes loan applications, and external operations, which handles letters of credit. Proper bank operations and risk management are essential.
commercial bank.ppt
Commercial banks engage in a variety of activities including processing payments, lending, and accepting deposits. Their primary functions are accepting deposits from customers and granting loans and advances to individuals and businesses. Deposits come in several forms such as current accounts, savings accounts, fixed deposits, and recurring deposits. Banks also provide secondary services like issuing letters of credit, safe deposit boxes, and money transfers. They offer short-term loans and credit through cash credits, overdrafts, and bill discounting.
9 Mortgage MarketsCHAPTER OBJECTIVESThe specific objectives of.docx
9 Mortgage Markets
CHAPTER OBJECTIVES
The specific objectives of this chapter are to:
· ▪ provide a background on mortgages,
· ▪ describe the common types of residential mortgages,
· ▪ explain the valuation and risk of mortgages,
· ▪ explain mortgage-backend securities, and
· ▪ explain how mortgage problems led to the 2008- 2009 credit crisis.
9-1 BACKGROUND ON MORTGAGES
A mortgage is a form of debt created to finance investment in real estate. The debt is secured by the property, so if the property owner does not meet the payment obligations, the creditor can seize the property. Financial institutions such as savings institutions and mortgage companies serve as intermediaries by originating mortgages. They consider mortgage applications and assess the creditworthiness of the applicants.
The mortgage represents the difference between the down payment and the value to be paid for the property. The mortgage contract specifies the mortgage rate, the maturity, and the collateral that is backing the loan. The originator charges an origination fee when providing a mortgage. In addition, if it uses its own funds to finance the property, it will earn profit from the difference between the mortgage rate that it charges and the rate that it paid to obtain the funds. Most mortgages have a maturity of 30 years, but 15-year maturities are also available.
9-1a How Mortgage Markets Facilitate the Flow of Funds
WEB
www.mbaa.org
News regarding the mortgage markets.
The means by which mortgage markets facilitate the flow of funds are illustrated in Exhibit 9.1. Financial intermediaries originate mortgages and finance purchases of homes. The financial intermediaries that originate mortgages obtain their funding from household deposits. They also obtain funds by selling some of the mortgages that they originate directly to institutional investors in the secondary market. These funds are then used to finance more purchases of homes, condominiums, and commercial property. Overall, mortgage markets allow households and corporations to increase their purchases of homes, condominiums, and commercial property and thereby finance economic growth.
Institutional Use of Mortgage Markets Mortgage companies, savings institutions, and commercial banks originate mortgages. Mortgage companies tend to sell their mortgages in the secondary market, although they may continue to process payments for the mortgages that they originated. Thus their income is generated from origination and processing fees, and not from financing the mortgages over a long-term period. Savings institutions and commercial banks commonly originate residential mortgages. Commercial banks also originate mortgages for corporations that purchase commercial property. Savings institutions and commercial banks typically use funds received from household deposits to provide mortgage financing. However, they also sell some of their mortgages in the secondary market.
Exhibit 9.1 How Mortgage Markets Facilitate t ...
Types of Surety Bond Collateral
What role does collateral play in surety bonds? In this publication, we take a look at the types of collateral that sureties may accept, the right time to release a collateral, what happens to a collateral if you change sureties, and why a collateral may be necessary for riskier bonds.
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9 Mortgage MarketsCHAPTER OBJECTIVESThe specific objectives of.docx
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The document discusses Uganda's financial services sector. It begins with a historical overview of banking in Uganda, from the initial four commercial banks at independence to periods of economic breakdown and reforms. It then describes the structure of Uganda's financial sector, including the roles of various institutions such as commercial banks, development banks, microfinance organizations, and the Bank of Uganda as regulator. The informal financial sector is also briefly outlined.
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The document discusses the banker-customer relationship under contract law. It defines key terms like banker, customer, and bank. A banker is defined as someone who carries out the business of banking like accepting deposits and honoring checks. A customer is anyone who uses a bank's services, including those without an account. The relationship is a contractual one, with implied rights and duties. Rights of bankers include charging fees and interest, while duties include keeping information confidential and honoring valid checks. The contract can end through termination by either party, by operation of law like death, or after reasonable notice from the bank.
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The legal environment unit4
This document discusses negotiable instruments and bank cheques. It defines negotiable instruments as documents used in commerce to secure payment of money. Cheques are specifically defined as written promises by the drawer for the bank to pay the payee on demand. The key parties to a cheque are the drawer, drawee (bank) and payee. Features of a cheque include the cheque number, sort code, account number and crossing lines instructing the bank to deposit funds in the payee's account rather than paying in cash. Negotiable instruments must bear the maker's signature, include an unconditional promise to pay a fixed sum, specify a payment on demand or at a definite time, and be payable to order or to bear
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Economic environment unit6
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Part 2 Deep Dive: Navigating the 2024 Slowdown
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
LA HUG - Video Testimonials with Chynna Morgan - June 2024
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
How MJ Global Leads the Packaging Industry.pdf
MJ Global's success in staying ahead of the curve in the packaging industry is a testament to its dedication to innovation, sustainability, and customer-centricity. By embracing technological advancements, leading in eco-friendly solutions, collaborating with industry leaders, and adapting to evolving consumer preferences, MJ Global continues to set new standards in the packaging sector.
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Lending unit 6
- 1. THE UGANDA INSTITUTE OF BANKING & FINANCIAL SERVICES UIBFS ISO 9001:2008 CERTIFIED 1 Module 3: Lending
- 2. THE UGANDA INSTITUTE OF BANKING & FINANCIAL SERVICES UIBFS ISO 9001:2008 CERTIFIED LEARNING OUTCOMES After completion of this study you should be able to: • Articulate the role of lending in the banking business • Discuss the various aspects of a typical bank lending cycle and highlight the key issues at each stage • Explain the meaning of insolvency, bankruptcy and receivership from the viewpoint of the lender. 2
- 3. THE UGANDA INSTITUTE OF BANKING & FINANCIAL SERVICES UIBFS ISO 9001:2008 CERTIFIED Lending in the Banking Business General Principles of Good Lending Types of Advances to Customers The Practice of Lending Securities for Advances Corporate, Retail and Mortgage Lending MODULE COVERAGE 3 Typical remedies for Defaulting Borrowers Insolvency, Receivership and its Effects
- 4. THE UGANDA INSTITUTE OF BANKING & FINANCIAL SERVICES UIBFS ISO 9001:2008 CERTIFIED Mortgages Charge on land and buildings registered with the Lands office. The implication of such a charge is that in the event that the borrower fails to pay, the lender seizes the property for sale and recovery of the outstanding loan amount plus any accumulated interest. Mortgages may be legal or equitable. • In the case of a legal mortgage, the lender is in principle free to move and possess/sell the mortgaged property without getting court orders (but subject to the whole due process of the law). • In an equitable mortgage, on the other hand, the lender must first get court permission through a warrant of attachment in order to possess the mortgaged property and sell it. Chattel mortgages These are charges placed on movable items like cars, motorcycles or furniture. 4
- 5. THE UGANDA INSTITUTE OF BANKING & FINANCIAL SERVICES UIBFS ISO 9001:2008 CERTIFIED Guarantees A guarantee is an unconditional undertaking in writing by one person (guarantor) in favour of another (principal debtor), promising to pay a third party (in this case the lending bank) a specified or determinable amount of money at a future debt should the principal debtor fail to meet his/ her stated obligations. When the debtor or borrower defaults, then the guarantee “crystallizes” or becomes payable – at which instance the creditor/ lender serves the guarantor notice that makes such guarantor the principal debtor. Cash collateral If the borrower has a fixed deposit or similar account with the bank, the money therein can be pledged or “collateralized” to secure a loan. Loan insurance Many banks nowadays insure their loans against default by taking out an insurance cover, specifically for loan default, at the expense of the borrowers 5
- 6. THE UGANDA INSTITUTE OF BANKING & FINANCIAL SERVICES UIBFS ISO 9001:2008 CERTIFIED Property/ asset insurance (pledged security) Insurance of the assets pledged as mortgage also constitutes further security to the loan. This is usually done with the lender (bank) as a co-loss payee. Post-dated cheques As additional security, some banks take post-dated cheques from borrowers. This kind of security is more of psychological deterrent to default because issuing a bouncing cheque is a punishable crime. Group co-guarantees (social collateral) For banks and other financial institutions that engage in group-based microfinance lending, co-guarantees among group members form social collateral, which is also security for the loans. Although the group members’ savings that back the guarantees are usually far below the aggregate value of their loans, peer pressure among group members prove effective in minimizing default. 6
- 7. THE UGANDA INSTITUTE OF BANKING & FINANCIAL SERVICES UIBFS ISO 9001:2008 CERTIFIED END 7
Editor's Notes
- What is collateral security? Collateral security is any asset or property pledged to a bank/financial institution as a ‘fallback’ position in the event that a borrower neglects, fails or refuses to service the loan. Using the security pledged, the lender is able to recover the loan balance. Below are some of the collateral security types in Uganda.