free site statistics
Tuesday , March 28 2023
Home / knowledge / International Banking Tutorial

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.


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.



Improve Your Health

  • How Green Tea affect to improve your Health

    This is the Health Knowledge Lankatricks provide you. Under the Health Calgary we try to discuss various area about improve your Health. This Post discuss about Green Tea and How it effect for your health.


  • Tips for writing an outstanding cover letter

    Lankatricks provide you to many of tutorials related to finding a good jobs. In this post you are going to learn how to write an outstanding cover letter. This will help you to achieve a your

  • Best Practices for Making CV, Cover Letter and Facing Interviews

    How to write a cover letter   Cover letter is a letter that you comprise with your job application or curriculum-vitae. It should be a single page letter and always you should attach cover letter

  • Computer Software Basic Introduction – Advanced Level ICT Tutorial

    Computer Software Basic Introduction In This Tutorial we are going to identify Basics About software and also this tutorial help for Advance Level and Ordinary Level Student to get knowledge about computer Software Lesson in

  • Six principles of insurance

    In this post shows the six principles of insurance and usage of that principles when dealing with the insurance contract. Every insurance contract gives financial protection and security to the person who buy the insurance and that

  • Blogging Advantages and Disadvantages Guide

    Do you need to write your own Blog? or Do you already have your own Blog? If “Yes“, Then this guide is vary impotent for you, And, this guide explains about Blogging Advantages and Disadvantages. This is

  • Introduction to Electronics – Electronics Definition

    In this tutorial you can learn basic definitions about electronics Such as Electronic, Active Devices, Passive Devices,Current, Direct Current,Alternating Current, Frequency, Voltage, Resistance etc. Definition of Electronics Electronics is the branch of science that deals

  • Basics of Insurance

    In present insurance concept is a very important and very popular thing among people in the society. Human beings, their properties and their family members are always exposed to different kinds of risks, hence People

– The things we publish in this website are relating to the job information and information relating to the professional courses, which are extracted from various sources such as various newspaper advertisement,circulars and Various websites. The right of these information belongs to the first owner of the information. If any alteration happen these information, we don’t take the responsibility arising arising from such alteration. Instead, what we do is to inform you as quickly as possible regarding the information related to the job opportunities and model applications and professional courses. as well as we allow you to gain essential knowledge related knowledge related for the competitive exams.

Check Also

Introduction to Electronics – Electronics Definition

In this tutorial you can learn basic definitions about electronics Such as Electronic, Active Devices, …