EMBA DU

Home Care: Wood Furniture

2014-09-09T01:56:00.002+06:00

Do:

• Wipe your wooden furniture everyday with dry and soft cloth.
• To keep your wooden furniture shiny, have them polish every 6 (six) months. Do not mix various types of polish. Use any particular type of polish of your choice.
• To get rid of wood insects spray Neem Oil every 6 (six) months.
• If any of your wooden furniture is bug-ridden, first isolate it and then take necessary action.
• If sun light enters into your room and reach your wood furniture, use heavy curtain.
• At times of shifting your furniture, keep eye on the furniture joints – they may got broken.
• Put some camphor or mineral spirit on soft cloth and rub, many of the stains will become vanish.
• If you get scratch mark on your wooden furniture, you may use matching shoe polish.
• To get rid of Cigarette stains, use scratch concealing polish.
• Use table mat.

Do Not:

• Do not wipe your wooden furniture with wet cloth. This will stain your furniture.
• Don’t keep your wooden furniture in sun light. This will affect your wood colour and make them light. Wooden furniture in direct sun light may have crack as well.
• Do not put water glass directly over the wooden furniture. Use tray to put the glasses. Otherwise, your furniture will get stain, rotten.
• Don’t store your wood furniture in a place that is over hot or over cold. This will destroy your wood.
• Don’t put hot dishes over the wooden furniture. They will discolor the furniture and may give permanent stains.

iPhone 6 - Raiting

2014-09-09T01:46:00.004+06:00

Rating for iPhone 6 :

Design            - 95%
Features    - 95%
Performance - 95%
Price       - 78%

OVERALL RAITING: 91% (Excellent)

In the world of Mobile phone, the most rumor in the current days may be i Phone 6. Long awaited by many now has come to end.

But among all the Android and big phablets, the 4 inch Apple devices was going little behind. Even many of their loyal customers want an iPhone with larger screen.

Finally they have decided to enlarge the display a little more. iPhone 6 is going to contain a 4.7 inch IPS LCD display with Sapphire crystal glass protection which will be very hard to break or crack. It may also have the new Apple A8 chipset and iOS 8 Operating System.

Although android has almost 80% of the market, we are assuming that with this device Apple can provide a very strong comeback. There is no confirmation of the price yet. But this would definitely be among the most important facts in the market.

Online Earning - Selling Products

2014-09-09T01:35:00.005+06:00

Selling your own products online is profitable and easy! Nowadays, you may sell anything on the Internet - books, clothes, food, services, etc. Why not sell even your own reflections or essays?

If you have a know-how or expertise that no one else has, you may certainly sell that through your website. Costs for selling online are really low - you only have to maintain your website alive and put relevant content about your product on that site.

Thanks to the Internet and your website, you have access to millions of people all over the world who actively search the net for anything new and interesting. It is also a well-known fact that consumers are more prone to spend money online, from the convenience of their homes.

Why not take advantage of all these favorable circumstances and start selling your own product, service, book, or anything else you wish?

Basel III framework for liquidity - Frequently asked questions

2011-09-14T23:14:00.000+06:00

This document sets out the first set of frequently asked questions that relate to Basel III’s liquidity rules. The first section of the document provides clarification on the calculation of the cap on Level 2 assets with regard to short-term secured funding. Section 2 addresses other questions and answers pertaining to the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) of the rules text. Section 3 sets out miscellaneous edits to the rules text.

2011-09-02T14:25:00.000+06:00

Sovereign Risk for International Payment

Sovereign risk is the extra dimension of risk involved in international, as distinct from domestic, transactions. Sovereign risk is an aspect of the credit proposal that is additional to the usual commercial risks such as credit, foreign exchange and transport risks, and is outside the individual borrower's control; it can override the borrower's willingness and ability to repay financial obligations, even though the borrower may be a government. Sovereign risk implies the possibility that conditions will develop in a country which inhibit repayment of funds due from that country, such as exchange controls, strikes or declarations of war.

SME Banking in Bangladesh

2011-09-01T03:08:00.001+06:00

Credit Management System in Bank

2011-06-24T21:16:00.003+06:00

Presentation on Credit Management System in Bank. Total Credit management in a bank.

Foreign Exchange Reserve Management

2011-06-06T19:36:00.006+06:00

You may also find other links in this blog's (sidebar or head bar) helpful for you. Give a look at them.

To download the file click the title.

Liquidity and Profitability Comparative Study in MS Power Point

2011-06-06T17:39:00.004+06:00

A Comparative study of Liquidity and Profitability of the Conventional Banks and Islamic Banks.

Yes it is an important topic for MBA or business students. To get the Power Point slides just click the link and download. Please leave your comment.

Evolution of Basell I & II

2011-05-21T00:43:00.001+06:00

This is the full version of Basel I & II evolution in MS Power Point. Download it for your further references and recommend for others.
Just click the title to download.

Basel II - Pillar I

2011-03-11T00:06:00.001+06:00

Pillar I

In the United States, all banks that will be required to conform to the new capital standard will use the Advanced Internal Ratings Based approach (AIRB).

AIRB Approach Requirements

Collect sufficient data on loans to develop a method for rating loans within various portfolios

Develop a Probability of Default (PD) for each rated loan

Develop a Loss Given Default (LGD) for each loan.

Example: Safe v. Risky Loans

Safe loans:

Over a 1-year period, only 0.25% of these loans default

If a loan defaults, the bank only loses 1% on the outstanding amount

Risky loans:

Over a 1-year period, 1% of loans default every year

If a loan defaults, the bank loses 10% of the outstanding amount.
For a $100 million portfolio of the safe loans, the bank would expect to see $250,000 in defaults in a year and a loss on the defaults of $2500

($100 million X .25% = $250,000)

($250,000 X 1% loss rate = $2500)

Goal of Pillar I

Although simplistic, this example demonstrates what Pillar I is trying to achieve

If the bank’s own internal calculations show that they have extremely risky, loss-prone loans that generate high internal capital charges, their formal risk-based capital charges should also be high

Likewise, lower risk loans should carry lower risk-based capital charges.

Banks have many different asset classes each of which may require different treatment

Each asset class needs to be defined and the approach to each exposure determined

Minimum standards must be established for rating system design, including testing and documentation requirements

The proposals must be tested in the real world

Complexity of Pillar I

Basel II - The 3 Pillars

2011-03-10T23:59:00.000+06:00

3 Pillars of Basel II

Basel II consists of three pillars:

Minimum capital requirements for credit risk, market risk and operational risk—expanding the 1988 Accord (Pillar I)

Supervisory review of an institution’s capital adequacy and internal assessment process (Pillar II)

Effective use of market discipline as a lever to strengthen disclosure and encourage safe and sound banking practices (Pillar III)

Basel II - New Approach

2011-03-10T23:55:00.000+06:00

New Approach to Risk-Based Capital

By the late 1990s, growth in the use of regulatory capital arbitrage led the Basel Committee to begin work on a new capital regime (Basel II)

Effort focused on using banks’ internal rating models and internal risk models

June 1999: Committee issued a proposal for a new capital adequacy framework to replace the 1998 Accord.

Basel II - Capital Arbitrage

2011-03-10T23:53:00.001+06:00

Capital Arbitrage

If a loan is calculated to have an internal capital charge that is low compared to the 8% standard, the bank has a strong incentive to undertake regulatory capital arbitrage

Securitization is the main means used by U.S. banks to engage in regulatory capital arbitrage.

Example of Capital Arbitrage

Assume a bank has a portfolio of commercial loans with the following ratings and internally generated capital requirements

AA-A: 3%-4% capital needed

B+-B: 8% capital needed

B- and below: 12%-16% capital needed

Under Basel I, the bank has to hold 8% risk-based capital against all of these loans

To ensure the profitability of the better quality loans, the bank engages in capital arbitrage--it securitizes the loans so that they are reclassified into a lower regulatory risk category with a lower capital charge

Lower quality loans with higher internal capital charges are kept on the bank’s books because they require less risk-based capital than the bank’s internal model indicates.

Basel II

2011-03-10T23:51:00.001+06:00

Variation in Credit Quality

Banks discovered a wide variation in credit quality within risk-weight categories

Basel I lumps all commercial loans into the 8% capital category

Internal models calculations can lead to capital allocations on commercial loans that vary from 1% to 30%, depending on the loan’s estimated riskBanks discovered a wide variation in credit quality within risk-weight categories

Basel I lumps all commercial loans into the 8% capital category

Internal models calculations can lead to capital allocations on commercial loans that vary from 1% to 30%, depending on the loan’s estimated risk.

Basel II - Models

2011-03-10T23:49:00.000+06:00

Banks Develop Own “Capital Allocation” Models

Advances in technology and finance allowed banks to develop their own capital allocation (internal) models in the 1990s

This resulted in more accurate calculations of bank capital than possible under Basel I

These models allowed banks to align the amount of risk they undertook on a loan with the overall goals of the bank.

Basel II - Risk Weights

2011-03-10T23:47:00.000+06:00

Risk Weights

Risk weights were based on what the parties to the Accord negotiated rather than on the actual risk of each asset

Risk weights did not flow from any particular insolvency probability standard, and were for the most part, arbitrary.

Operational and Other Risks

The requirements did not explicitly account for operating and other forms of risk that may also be important

Except for trading account activities, the capital standards did not account for hedging, diversification, and differences in risk management techniques.

Basel II - Critisism of the Accord

2011-03-10T23:44:00.002+06:00

Criticisms of the Accord

The Accord, however, was criticized for taking too simplistic an approach to setting credit risk weights and for ignoring other types of risk.

Basel II Capital Calculation

2011-03-10T23:38:00.000+06:00

Capital Calculation

To calculate required capital, a bank would multiply the assets in each risk category by the category’s risk weight and then multiply the result by 8%

Thus a $100 commercial loan would be multiplied by 100% and then by 8%, resulting in a capital requirement of $8.

Basel II

2011-03-09T00:46:00.000+06:00

Credit Risk – On Balance Sheet

Credit Risk AdjustedOn Balance Sheet Assets =

where,

wi = Risk Weight of Asset

ai = Book Value of Asset on Balance Sheet

On BS Weightings – Basel II

The Evolution to Basel II (part 2)

2011-02-21T00:07:00.000+06:00

Credit Risk - Basel I

Core (Tier I) and Supplementary (Tier II) Capital
On Balance Sheet and Off Balance Sheet Assets
Assigns risk weighting to different asset classes to obtain a Credit Risk Adjusted Asset Value

Credit Risk - Capital

The Evolution to Basel II

2011-02-20T23:31:00.001+06:00

First Basel Accord

The first Basel Accord (Basel I) was completed in 1988

Set minimum capital standards for banks
Standards focused on credit risk, the main risk incurred by banks
Became effective end-year 1992

To create a level playing field for internationally active banks

Banks from different countries competing for the same loans would have to set aside roughly the same amount of capital on the loans

1988 Accord Capital Requirements

Capital was set at 8% and was adjusted by a loan’s credit risk weight. Credit risk was divided into 5 categories: 0%, 10%, 20%, 50%, and 100%

Commercial loans, for example, were assigned to the 100% risk weight category

Risk-Based Capital

The Accord was hailed for incorporating risk into the calculation of capital requirements

Enforcement of Capital Adequacy

Two Capital Requirements
-Leverage Ratio
-Risk-Based Capital Ratio

Leverage Ratio = Core Capital / Assets
Risk-Based Approach implemented by Bank of International Settlements (BIS)
-Basel Agreement

Reason for the Accord

Electronic Banking

2010-08-16T00:07:00.006+06:00

What is Electronic-Banking
• E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, Interactive communication channels.
• E-banking includes systems that enable customers of financial institutions, individuals or businesses, to access accounts, transact business or obtain information on financial products and services through a public or private network, including the Internet
• In addition, e-banking is made up of a broad category of systems and devices, including one of its first and perhaps most common forms that include credit and debit cards
• E-banking provides clients with the capability to do business with the bank, even after working hours, and the clients can do it in places they deem comfortable to use the computer and the internet

Elements of EB

2010-08-16T00:07:00.002+06:00

Elements of Electronic-Banking

Electronic Data Interchange (EDI):

 Electronic Data Interchange (EDI) refers to the structured transmission of data between organizations by electronic means
 It is used to transfer electronic documents from one computer system to another, i.e. from one trading partner to another trading partner

Automated Teller Machine (ATM)

 ATM is a device that allows customers who have an ATM Card to perform routine banking transactions without interacting with the human teller
 The ATM cardholder can do most of the banking transactions like withdrawals, deposits of cash and cheque, balance enquiry, etc.
 The origin of ATMs can be traced back to June 1967 when Barclays' Bank installed the first cash dispenser in the UK

POS (Point of Sales)

 A point-of-sale (PoS) terminal is an electronic device that is used for verifying and processing card transactions
 Point-of-Sale Transfers let one pay for purchases with a debit card
 The process is similar to using a credit card, with some important exceptions
 The process is fast and easy, a debit card purchase transfers money - fairly quickly - from one’s bank account to the store's account

Plastic Card Currency

 Plastic cards, also known as plastic currency, involving electronic devices in their functioning is gaining popular as a convenient mode of payment
 By using these plastic cards, financial exchanges take place on line between buyers and sellers
 There are different types of cards which include Credit Cards, Debit Cards, ATM Cards and Smart Cards

Credit Card

 Credit Card can be called as an equivalent of a loan sanctioned by the bank to its customers
 Credit card facilitates and makes it possible to "Use First and Pay Later"
 Before issuing the card, the bank likes to know and be sure of the identification, age, level and source of income and repayment capacity
 This card facilitates the cardholder to purchase goods and services from the merchant establishments and shops through the collaborating credit card companies like VISA, MasterCard, Maestro, and Cirrus.
 Interest is charged by the bank, on a monthly basis, for the credit provided through the card. Service charges are collected from the cardholder/merchant for the transaction and processing.

Debit Card

 A Debit Card allows online electronic payment from savings or current accounts of the cardholder for purchases or cash withdrawals
 This card is a deposit access product where cardholder uses his own money in his bank account through the debit card on the principle of "Pay First and Use Later".
 Debit card can be used to make purchase at retail shops and merchant establishments in the same way as the credit card is used.
 But in order to use the debit card, the cardholder must have sufficient balance in his/her account. Debit card contains the symbol or hologram of the collaborating company such as VISA, MasterCard, Maestro and Cirrus, etc.

E-Payments

Payment is generally understood as a transfer of fund from one person (payee). In E-Payments, funds are transferred through electronic mode. These are:

S.W.I.F.T

 The society for Worldwide Inter-Bank Financial Telecommunication (S.W.I.F.T.) provides reliable, secure and expeditious telecommunications facilities for exchange of financial messages across the world
 The banks are mostly the member of this International Financial Messages Communication Network. The banks can carry out foreign exchange business, safely, using this network.

Electronic Fund Transfer

2010-08-16T00:05:00.001+06:00

Electronic Funds Transfer (EFT):

 EFT system permits transfer of funds from an account at any branch of a member bank in any city to any other account at any branch of any member bank in any other city
 This system utilizes the service branches of the member banks. It facilitates the transfer of funds from one place to another place within the country quickly and safely.

Tools of EFT

 Internet Banking
 Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their retail banks. The common features fall broadly into several categories:
Forms of Internet Banking

Transactional

 Financial transactions, electronic bill presentment and payment
 Funds transfer between a customer's own checking and savings accounts, or to another customer's account
 Investment purchase or sale
 Loan applications and transactions, such as repayments

Non-transactional

 Viewing online statements, check links, chat
Remittance Services:
 Remittance houses worldwide provide remittance transfer services through various forms of E-Banking starting from basic PC based software to web based instant payment solutions
 Today’s fast changing electronic banking channels have massively improved the flow of remittance across the world:

• Western Union Money Transfer
• MoneyGram
• XPress Money