Name the financial statements prepared by a bank.
The financial statement has prepared by a bank are listed in 4 categories:
1. Balance Sheet:
It presents the financial position at a given date by-
Assets
Liabilities
Equity.
Assets
Liabilities
Equity.
2. Income Statement:
It represents the company's financial performance in terms of net profit or loss that composed Income - Expense.
3. Cash Flow Statement:
It presents the movement in cash and bank balances by
Operating Activities
Investing Activities
Financing Activities.
Operating Activities
Investing Activities
Financing Activities.
4. Statement of Retained Earnings:
It presents the movement in owners' equity that derived by-
Net Profit or loss
Share capital issued or repaid
Dividend payments
Gains or losses recognized directly in equity
Effects of a change or correction in accounting policy or error.
Net Profit or loss
Share capital issued or repaid
Dividend payments
Gains or losses recognized directly in equity
Effects of a change or correction in accounting policy or error.
Describe the functions of Credit Administration Department of a bank.
A typical credit administration unit performs following functions:
1. Documentation:
To guarantee that all security documentation conforms to the terms of approbation and is enforceable
2. Disbursement:
To
control office distributions strictly when all terms and states of
approbation have been met, and all security documentation is set up.
3. Credit Monitoring:
Stay
informed concerning borrowers' consistence with credit terms,
recognizing early indications of anomaly, leading occasional valuation
of guarantee and checking convenient reimbursements.
4. Custodial Duties:
Capacity
of security reports ought to be brought together. Proper protection
scope ought to be kept up on resources promised as guarantee.
5. To maintain control over all security documentation
6. Compliance monitoring:
To
screen borrower's consistence with pledges and concurred terms and
conditions, and general checking of record behaviour /execution.
What are the principal money market and capital market instruments available to the banks in Bangladesh?
The financial market in Bangladesh is mainly of following types :
1. Money Market:
The instruments that are generally traded in the money market constitute:
a) treasury bills
b) short-term bonds of govt. & central bank
c) negotiable certificates of deposits
d) bankers acceptances
e) commercial papers - bills of exchange - promissory notes - mutual funds
2. Capital Market:
The
instruments that are generally traded in the capital market
for medium and long term and, in cases such as equities, for
unspecified periods are constitute:
a) long-term government securities
b) corporate bonds
c) stocks
d) municipal bonds issued by state and local government units e) mortgages.
What are the sources & uses of funds of depository financial institution ?
Deposits
and others funding sources, depository institutions both make
direct loans to various entities and invest in securities.
Income is derived from 2 sources-
i) income generated from the loans .
ii) fee income.
i) income generated from the loans .
ii) fee income.
What are the sources & uses of funds of a non-bank financial institution ?
Sources of funds of NBFIs:
1. Capital, reserves and profit
2. Currency
3. Demand deposits
4. Other deposits :
a. Banking and financial institutions
b. Public sector
c. Private sector
d. Foreign.
5. Borrowings.
6. Funds from other financial institutions :
a. Domestic
b. Foreign.
7. Insurance, provident and pension funds.
8. Other liabilities Uses of funds of NBFIs:
i. Currency
ii. Deposits with other financial institutions:
a. Domestic
b. Foreign
iii. Loans and advances:
a. Banking and financial institutions
b. Public sector
c. Private sector
d. Foreign
iv. Securities:
a. Treasury bills
b. Commercial bills
c. Malaysian Government Securities (MGS)
d. Corporate o Private Debt Securities (PDS) o Equities
e. Foreign
f. Others.
v. Gold and forex reserves
vi. Other assets.
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