free site statistics

International Banking Tutorial

Published 6 years ago by LankaTricks
International Banking Tutorial

International Banking Tutorial

 

(01) Explain the off balance sheet activities in domestic and international banking the way to impact to the profit & loss.

An asset or debt that does not appear on a company’s balance sheet. Items that are considered off balance sheet. All of domestic and international banks have off-balance sheet accounts, and the distinction between these accounts may not seem obvious. There are many off balance sheet activities in the bank. They are Loan commitments, certain letters of credit, Revolving underwriting facilities and Derivative instruments – swaps, futures, forwards and option contracts.

When considering Loan commitments, it is a formal loan commitment is a written agreement, signed by the borrower and lender, detailing terms and conditions under which a loan of up to a specified amount will be made. The commitment will have an expiration date and for agreeing to make the accommodation, the bank may require a fee to be paid and require the maintenance of a stipulated compensating balance by the customer.

So, futures contract is a standardized contract between two parties to exchange a standard quantity of a specified underlying asset on a predetermined future date at a price agreed today and Option contract is an option give a holder the right, but not the obligation to buy or sell a specified quantity or quality of a certain asset within a specified period or on a specified date at a price agreed when the contract was entered into. In the financial market to hedge the risk or to minimize the risk, derivative instruments are used.

Income generated from off-balance sheet activities are included in earning. So, many of the risks involved in these off-balance sheet activities. These features of off-balance sheet impact to the profit and loss of the bank. These activities mention under the financial notes.

 

 

(02) Discuss the operational risk using international bank crisis and method used to overcome the crises

Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.

A banking crisis usually refers to a situation in a general market adjustment when faith in banking institutions falls, and people start trying to move their money to other places for safe keeping. This is called a run on the banks. It can also occur due to overextending low quality loans, which in a down market can become essentially worthless.

There are many methods used to overcome the bank crisis they are as follows

1.Faster decision-processes -: Decisions taken at the lowest level possible and transparency by a new corporate governance model.

2.Culture change realized by the employees

3.Management innovation around core people and leadership practices -: In conjunction with all other PEARL initiatives within HR we are now focused on reinventing some of the core management practices that are real barriers when it comes to an engaged, accountable, responsive culture.

4.Communication

5.Innovation -:A lot of focus is being put on innovation, preferably in co-creation with the customer. Crowdsourcing is also often used as a way to collect and improve ideas. To stimulate this, various initiatives were taken.

 

 

(03) Discuss briefly innovation in domestic and international banking.

There are many banks product and service innovation can be seen in the recant few years. They can affect improvement of banking sector and reduction of the crisis of the banking industry. Same of them as follow.

– Smart Current Account -:A free bank account built around an Application Programming Interface (API), the Smart Current Account supplements classic account services with internet payments and innovative banking products.

– Digital Branch -: To appeal to young, tech-savvy consumers and to perfect its Omni-channel offerings, The Bank of East Asia, Limited (BEA) launched a highly flexible and mobile digital branch that operates as a paperless, straight-through model.

– Powerful Teller-Dashboard -:This is for Enhancing Customer Experience at Every Contact Point

– Co-op Capital -: This is for Widening Access Points to Financial Products.

– The Mobile ATM Service for Small Medium Enterprises -: Idea Bank SA launched a secure multi-functional mobile ATM and depository service housed in an electric BMW i3 car driven by trained bank employees that is offered free of charge for the banks small medium enterprises (SME) customers.

 

 


– The contents we publish on this website regarding the professional and educational courses are extracted from various sources, such as newspaper advertisements, circulars, and websites. The right to this information belongs to the first owner of the information. If any alteration happens to this information, we don’t take the responsibility arising from such alteration. Instead, we do inform you as soon as possible regarding the updated information related to professional and educational courses. Also, we allow access you to gain essential knowledge related to competitive exams.

Related Posts

JAM Topics 2019 - Global Warming and Favorite Color

JAM Topics 2019 - Global Warming and Favorite Color

Published 4 years ago by LankaTricks

JAM Topics 2018 In this post we are going to discuss vary impotent two JAM Topics frequently asked in the just in minute Session. These two topics are the topics of Global Warming and Favorite Color. Now we discuss one by one these topics. The first topic is Global Warming. Following you can get information…

JAM Topics
Introduction to Microcontroller - PIC Microcontroller Progamming - 01

Introduction to Microcontroller - PIC Microcontroller Progamming - 01

Published 6 years ago by LankaTricks

Introduction to Microcontroller In this tutorial, we are going to give you to same complete tutorial about Microcontroller programming using PIC Mirocontroller and also this tutorial about Introduction to Microcontroller Programming and this is the first lesson of PIC Microcontroller Programming Series. In day today Life,we all deal with the various types of electronic devices…

Tutorials
2013 AL Paper - Information and Communication Technology

2013 AL Paper - Information and Communication Technology

Published 4 years ago by LankaTricks

2013 AL Paper – Information and Communication Technology Considering the All Subject Stream of Advanced Level Examination in Sri Lanka, Information and Communication Technology is the one of Major subject which can follow by the Students and also This is available for study with any subject stream. The Meaning of ICT as follows ICT is…

A/L Pass PapersA/L TutorialsE ThaksalawaICT
Advanced Level Chemistry - Exam Paper 2016

Advanced Level Chemistry - Exam Paper 2016

Published 4 years ago by LankaTricks

  Advanced Level Chemistry – Exam Paper 2016 Advanced Level Chemistry is o one of main subject student can follow under the science subject stream. In This Post, Lankatricks Website provides  you Advanced Level Chemistry – Exam Paper 2016 to study and get knowledge about what the structure and question asking pattern. Following you can…

A/L Pass PapersA/L TutorialsE Thaksalawa
Economics Paper 02 - A/L Commerce or Art

Economics Paper 02 - A/L Commerce or Art

Published 6 years ago by LankaTricks

Advanced Level Economics is the one of important subject with all Art and Commerce students in Sri Lanka. and In this post you can get the knowledge about how ask you question in advanced level economics Paper.and There are many questions related to the first lesson of advanced level economics included in this short question…

A/L TutorialsTutorials
Digital Logic and Transistor - O/L ICT Tutorial part 02

Digital Logic and Transistor - O/L ICT Tutorial part 02

Published 6 years ago by LankaTricks

  ICT is the short form of the Information and Communication Technology and This is vary impotent subjects in present and It will be more useful for future times. So These ICT Tool and Techniques use in every industry and each and every works. In this post  brings to you the second lesson of Ordinary…

O/L TutorialsTutorials