The custody business is one of the most lucrative divisions in investment banking. It is estimated that custody annually generates some 12.5 Billion in fee income noting that fees only constitute about 40% of the overall income of a custodian… this is a high profile business worth considering especially now that global fund managers such as State Street Bank, Bank of New York, Barclays..etc are investing in the emerging markets of the Middle East. Read the rest of this entry »
Securities – Custody/Sub-Custody Business
August 23rd, 2011Consumer Finance
August 22nd, 2011
Only if extended within accurately placed parameters, do the personal loans generate vast profits. On the other hand, the delinquency ratio may accelerate in a fearful velocity causing sever losses if personal loans are extended haphazardly.
The INDICATIVE CREDIT SCORING SHEET is one component of a whole integrated system of operations; for it to be effective it must be put together in accord with the other components as highlighted hereunder. Read the rest of this entry »
Fraud Case – The Guaranteed Capital Investment Bonds of the HSBC
August 21st, 2011
Back in the year 1995, the HSBC Bank launched a new investment product they named the “Guaranteed Capital Investment Bonds”. Read the rest of this entry »
Trade Finance External Audit
August 18th, 2011
Because of its unique technical nature, auditing the trade finance department is different than auditing other departments of the bank. The risks of its complex operations often disguise in areas that can’t be reflected in the department’s accounts; it requires a trade finance operations expert, not only accountants, to identify the existing risks and foresee potential ones.
An independent external trade finance audit is necessary for the banks protection, not only does it safeguard the bank from illegal and negligent practices, an external audit also provides the management with information about the efficiency of the procedures, structure, limits of authority … etc. Furthermore, an independent external trade finance audit is the exemplary means to protect the bank from organized commercial crime and prevent fraud. Read the rest of this entry »
The Full Range of Technical Training Courses in Banking
August 17th, 2011
Training to us is not a process of indoctrination; it is a mission, a responsibility and a philosophy directed by one single objective that is to convey to our trainees the complex technical skills they need to run faultless banking operations.
Trade Finance
August 17th, 2011
This is by far the most important division in banking. Trade Finance is the heart of any commercial bank. Not only does it generate vast funds and non funds income (Interest free income), it also replenishes the personal bank with deposits, personal loans, credit cards, auto pay and so on. Read the rest of this entry »
The Systematic Approach to Strategic Planning in Banking
August 16th, 2011
The pace of change in the market, bank’s size, bank’s complexity, increased competition and sophisticated telecommunications are some of the key reasons why strategic planning for banks has become essential. In today’s markets achieving a sustainable competitive advantage can only materialize through sound strategic planning. Without such strategic planning a bank will almost certainly diminish with time. Read the rest of this entry »
Corporate Banking – The Account Relationship Management
August 15th, 2011
Banks normally provide credit in the form of overdrafts, loans, bills discounted, or import and export finance. The process of extending any of the said forms to corporate borrowers passes through two distinctive phases; the credit decision making process (account relationship management) and the banks’ internal operations. Read the rest of this entry »
Handling Discrepant LCs Documents
August 14th, 2011
Introduction:
The Letter of Credit is the most commonly used tool in international trade. This is because it provides an ideal means to shift the credit risk from a merchant – who can seldom evaluate such risks on his/her own – to a bank. Banks normally equip themselves with efficient operational systems, internal guidelines, instruction manuals/procedures and indicative credit methods to evaluate risks associated with LCs transaction; whether these are operational risks, credit risks or country risk.
In export transactions, risks are much more difficult to assess for a multitude of reasons; a. the ambiguity of external regulations and legal issues an importer is subject to, b. the difficulty to obtain reliable credit information for foreign firms, c. the complexity of evaluating the risk of the exporting country where issues such as balance of payments, foreign exchange control, political and social stability have to be carefully looked at. Read the rest of this entry »
From Chop To Web: The Evolution Of Letters Of Credit
August 13th, 2011
In ancient times, a man’s good name was all that was needed to sign off on the import or export of goods, but in these days of international trade and not-quite-harmonized banking laws, more documentation is required.
That’s where a letter of credit (L/C) becomes important, by providing a bit of assurance that a transaction with an entity you’ve never done business with is actually going to take place. In a sense, a letter of credit guarantees the handshake. Read the rest of this entry »
