...Owen’s Precision Machining Credit Analysis Xiaoyun Hu * Business and Strategy OPM is a fifteen-person machine shop that makes customized metal parts and integrated subassemblies for a variety of end uses. Found in 1986, it now locates on the first floor of a converted textile factory next to the Merrimack River in Lawrence, MA. The A/P term of OPM is net of 30. And here is the 5-forces analysis: * The power of suppliers: Strong Most of the raw materials OPM needs are differentiated, rare and hard to source. They need long lead times and large minimum order quantities. And to form competitive advantage, OPM needs to store a lot. In order to mill good products, OPM needs specific materials that can’t be substituted. As a result, the power of suppliers turns out to be strong. * The power of buyers: Strong OPM’s competitive advantage mainly lies in the lead times so that they can provide enough volumes according to buyers’ needs. This indicates that OPM’s products are undifferentiated and buyers believe that they can always find other shops very quickly. * Threat of new entrants: Medium To initiate a business in customized subassemblies area, one doesn’t need much capital expenditure to invest. OPM at first was a single-owner small operator. And if the customers want to switch to another shop, they won’t bear much additional costs. The demand-side benefits of scale are also not apparent in the industry. However, the company can achieve supply side economies...
Words: 1288 - Pages: 6
...Analysis of credit card debt By: Corrine Owens M3A2 9/15/15 Analysis of credit card debt pg.1 Based upon a balance of 5,270.00 on an APR of 15.53% the calculation is as follows per US BANK: $256.85 per month will pay off your credit card in 24 months. To pay off your credit card balance of $5,270 in 24 months you need to pay $256.85 per month. This includes your additional monthly purchases of $0 and your major purchases. This assumes no additional charges such as late fees. If you keep your monthly payment at $25 it will take more than 360 months(US BANK,2015). Results Summary | Current balance | $5,270 | Current monthly payment | $25 | Monthly charges | $0 | Major purchase 1 | $0 in 0 month(s) | Major purchase 2 | $0 in 0 month(s) | Annual fee | $0 | Interest rate (APR) | 15.53% Pg.2 | Payment required to meet goal of 24 months is $256.85. | Keeping your monthly payment at $25 will take more than 360 months. | | | Because most credit card companies require individuals to pay at least 2% of their balance due, on a balance of...
Words: 1116 - Pages: 5
...Identify and quantify the bank’s vulnerability to credit, market, liquidity, operational, regulatory and reputational risks. Understand and learn best practice procedures to monitor and manage these risks and their impact on revenues. Relate these risks to bank capital. CONTENT I. ANALYTIC OVERVIEW Overview • Why risk management is critical to banks • Value drivers and business model of a bank. • Understanding differing perspectives: shareholders, regulators, and debt providers. Risk management • Major risk groups: credit, market, liquidity, operational. • Management objectives – risk versus return. • Lessons learned from recent risk management failures: sub-prime, CLOs, leveraged loans, trading losses and etc. Capital allocation • Types of capital: shareholder, regulatory and economic capital. • Economic capital: key management assumptions. • Regulatory capital Basel 1 versus Basel 2. • Managing capital structures: comparisons between banks. II. CREDIT RISK Identifying and quantifying the risk • Seven categories of credit risk: lending, contingent, issuer, pre-settlement, settlement, country/transfer, other. • Systems and procedures for quantifying and aggregating exposures. • • Bank rating models: classifying risks according to default and recovery probabilities; borrower and facility evaluations. Quantifying expected and unexpected losses. Managing credit risk • Limits and safeguards – policy, process and procedures. • Credit approval authorities and transaction approval process...
Words: 547 - Pages: 3
...The four articles I read give several effects for why students abuse credit cards. First, Jill M. Norvilitis, in the article “Credit card debt on college campuses : causes, consequences, and solutions” says 6 effects. 1. Two or more than two pieces of news diffusely covered in the mediums of university students who passed away as they can’t afford their credit card bills. 2. In two diffusely, before students passed away, they had told others about find stricken by the bills abruptly. 3. Lots of students in school study test period notify having several work to pay the bills they have established. 4. For tother students, the consequence can be insolvent, or having work already hard duty by debt. 5.It is expected that students who have a lot...
Words: 353 - Pages: 2
...PEDRO Z ANO T E L LI F I X E D I N C O M E R ESE A R C H W M T 4.25% 4/15/2021 RATIONALE Wal-Mart is a recommended BUY due to its competitive advantage against peers in the industry, good capital structure (good management), and relatively good ratios for profitability, solvency and liquidity. The company is the biggest company in North America and expanding more year by year. It carries a wide product assortment and in lower costs against any other company in the industry; keeping favorable pricing from and systematic integration with most of its suppliers. COMPANY DESCRIPTION Wal-Mart divided into three divisions: Wal-Mart U.S. (FY 12 (Jan.) sales $264.2 billion), Sam's Club ($53.8 billion), and Wal-Mart International ($125.9 billion). Wal-Mart operates a chain of over 10,000 discount department stores, wholesale clubs, supermarkets and supercenters. They also offer its products through various e-commerce websites. They are the best-positioned to address the needs of customers around the world. Over 100 million costumers visit Wal-Mart stores worldwide each week; the company is a dominant player in many of the markets in which it competes. Their customers remain pressured, particularly in mature markets, about job security and personal finances. In emerging countries, the economic recovery is stronger and fueling a growing middle class. With FY 12 sales of about $145 billion within supermarket-related categories (grocery), the WalMart U.S. division is the largest...
Words: 1497 - Pages: 6
...created and operated by their members and profits are shared amongst the owners.” In other words, as opposed to big banks, whose focus lies solemly on extracting profits, credit unions are more interested in customer service and the overall well-being of their clients. To better illustrate their different approach to banking, I will share some of the things I learned during a talk from a local credit union in my economic alternatives class. First, it was evident that the women who work at the credit union, were not only praising their workplace in a marketing effort, but instead, because they truly love the way in which they are treated as employees, and also, the opportunity they are being given to help community members with their financial needs. Their level of engagement and the way in which they spoke about finding ways (within the system) to help each client, were indicative of the remarkable client and employee treatment which credit unions are known for. Another benefit credit unions offer which is worth noting, is their commitment to serving their communities. Before jumping to the conclusion that big banks also work to serve their communities, Elizabeth Friedrich, speaker at an Occupy Wall Street lecture, best explained what is meant by the phrase “serve their communities” in the following excerpt: “Credit Unions serve their local communities. This means that the money deposited by members, stays locally, to help build a stronger communities.” Said occurrence is relevant...
Words: 1612 - Pages: 7
...Accounting 70150 Financial Institution Financial Analysis, Part I 75 points Name: Signature 1. (12) Refer to the Citigroup 2009 10-K report. Explain the primary reasons for the Net Income differences between 2008, 2009 and 2010. Use the following format: 2009 2010 2011 Citigroup’ net income (loss) $billions ($1.606) 10.602 $11.067 Change $12.208 $.465 2011 vs. 2010: Citigroup and Consolidated Subsidiaries Overall, the largest change between the two years on the Income Statement is the 50.86% reduction (26,042 to 12,796) in the provisions for credit losses and benefits and claims. Net income for Citigroup increased 4.65% (10,602 to 11,067) while revenues decreased 10% (from 86,601 to 78,353) and operating expenses increased 7.51% (47,375 to 50,933). Additionally, the income from discontinued operations increased from (68) to 112. Citicorp Analysis: While total Citicorp income from continuing operations only decreased 2%, the Global Consumer Banking increased 33%, the Securities and Banking decreased 25%, and the Transaction Services decreased 7%. Citi Holdings Total Citi Holdings increased 38% in the period, as Brokerage and Asset Management decreased 27%, Local Consumer Lending increased 43% and Special Asset Pool decreased 49%. Thus, Citi Holdings income from continuing operations increased only 1%, but the Discontinued Operations, Net Income attributable to NCI decreased 47%, causing Citigroup net income to increase by 4%...
Words: 2696 - Pages: 11
...INTERNSHIP REPORT ON LOAN ADVANCEMENT PROCEDURE OF IFIC BANK LIMITED LOAN ADVANCEMENT PROCEDURE OF IFIC BANK LTD. Submitted to MAHMUDUL HAQ ADVISOR BRAC BUSINESS SCHOOL BRAC UNIVERSITY Submitted by MST. NAZMUN FARZANA ID: 09104103 BRAC BUSINESS SCHOOL BRAC UNIVERSITY date oF SubmiSSioN 17TH DECEMBER, 2012 LETTET OF TRANSMITTAL 17TH DECEMBER, 2012 Mahmudul Haq Course Instructor, BBS BRAC University Dear Sir, Here I present my Internship report titled “Loan And Advance Operation of IFIC Bank Limited‟ with due gratitude and appreciation. As per partial fulfillment of the requirements for the BBA Degree, I have completed the internship from IFIC Bank Limited, Federation Branch, Motijheel, Dhaka. The internship program has given me the opportunity to learn about different aspects of this well reputed organization. Before facing the corporate world, I have gathered general idea about the organization culture and activities. However, I have gathered all the facts that I could within this short period and have tried my level best to exert all the things as much presentable as possible. Yours faithfully, ………………. Mst. Nazmun Farzana ID: 09104103 Acknowledgement At the beginning, I would like to express my sincere gratitude to Almighty, the most merciful and beneficial for empowering me to prepare the report within the scheduled time. I also want to thank especially to my internship supervisor Mahmudul Haq Sir for his inspiring guidelines, valuable suggestion, constructive...
Words: 11754 - Pages: 48
...List of e-Lessons Mandatory for TO 2014 Batch Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Lesson ID L0017 L0015 L0016 L0070 L0286 L0287 L0151 L0438 L0439 Name of the e-Lesson Time Management Business Values and Ethics Communication Banking Ombudsman RTI Act - I RTI Act - II Basics of Banking KYC, AML & CFT Part - I KYC, AML & CFT Part - II Fair Banking Practices Priority Sector Lending Financial Inclusion Agri Credit Process – Pre Sanction Agri Credit Process – Post Sanction Home Loans – Pre Sanction Inspection Housing Loan ( Regular Schemes) Housing Loan Others ( NRI Home Loan, SBI Yuva Home Loan, SBI Home Equity Housing Loan Others ( SBI Maxgain, SBI Realty, Loan for Earnest Money Deposit Education Loan - SBI Student Loan Scheme Education Loan - SBI Scholar Loan Scheme Auto Loans Part - I Auto Loans Part - II Personal Loan Liability Central Processing Centre ( LCPC) Retail Assets Central Processing Centre ( RACPC) Green Channel Counter Small and Medium Enterprises City Credit Centre (SMECC) Stressed Assets Resolution Centre ( SARC) 7 6 4 3 2 1 Month 10. L0060 11. L0132 12. L0124 13. L0227 14. L0278 15. L0298 16. L0034 17. L0302 18. L0300 19. L0422 20. L0423 21. L0431 22. L0432 23. L0062 24. L0006 25. L0008 26. L0229 27. L0010 28. L0011 5 Sr. No. Lesson ID Name of the e-Lesson Trade Finance Central Processing Centre ( TFCPC) Short Term Agri Products Crop Loans Basics of Financing Agriculture ( Krishi Gyan) Self Help Group Farm Mechanisation Farm Mechanisation Other than...
Words: 558 - Pages: 3
...Student Company Internal Control Analysis |Process |Control Owner |Frequency |Documentation and execution |Control Review Process | 1. CASH DISBURSEMENTS |Approval of Vendor Invoices|A/P Clerk |Weekly |A/P Clerk collects vendor invoices, records |A scanned copy of the approved vendor | | |Purchasing Manager | |vendor invoices in the system, and gets vendor |invoices are kept in the system. Large | | | | |invoices approved by the Purchasing Manager |invoices are periodically reviewed, other | | | | | |invoices can be retrieved on an as needed | | | | | |basis. | |Printing Checks, Preparing |A/P Clerk |Weekly |A/P clerk prepares cash disbursement vouchers, |Treasurer reviews the cash disbursement | |Cash Disbursement Vouchers | | |which includes a copy of each approved invoice.|vouchers, and weekly check run prepared by| | | | |A/P Clerk prints the...
Words: 895 - Pages: 4
...Chapter – One Introduction 1. Preclude Credit is an arrangement whereby bank acting at the request and on the instructions of a customer or on its own behalf to make a payment to or to the order of a third party or is to accept and pay bills of exchange drawn by the beneficiary. In an economy banks play the role of an intermediary that channels resources from the surplus group to the deficit group. So obviously one of the core functions of Commercial banks is to sanction Credit facility to it’s customers as per requirement. UTTARA BANK LTD. Bank’s Mission is to actively participate in the growth and expansion of our national economy by providing Credit to various customers in most efficient way of delivery and at a competitive price. Risk is inherent in all aspects of a commercial operation; however for Banks and financial institutions, credit risk is an essential factor that needs to be managed. Credit risk is the possibility that a borrower or counter party may fail to meet its obligations in accordance with agreed terms. Credit risk therefore, arises from the bank’s dealings with or lending to corporate, individuals and other banks or financial institutions. In general, a banking system aggregates a high number of low value deposits to fund enterprises with a smaller number of high value loans. This intermediation through a well functioning bank helps to achieve some economic benefits for the depositors, the borrowers and...
Words: 6885 - Pages: 28
...ASSESSMENT AND MITIGATION ANALYSIS: MICRO-CREDITS FOR ROMA COMMUNITIES IN HUNGARY Prepared by Volodymyr Tounytsky, Zoltan Kristof and Alexandra Windisch-Graetz For UNDP, “Micro-credit programme for disadvantaged groups in Hungary – with a special focus on the Roma population”(Pr.Nr. 00042644) TABLE OF CONTENTS 1. Executive summary 3 2. Overview of status of micro-lending in general, for vulnerable groups and Roma population in particular 3 2.1 A brief look at the competition: Usury and quick loans in Hungary 7 3. Description of Hungarian microfinance project 11 4. Risk analysis of micro-lending institution and its operations for disadvantaged groups as designed under the Micro-credit program for disadvantaged groups in Hungary and mitigation guidelines 12 4.1 Institution Related 13 4.2 Target Group Related 14 4.3 Product Related 15 4.4 Loan Process 21 4.5 Delinquency and Defaults 27 5. A set of indicators for risk monitoring and portfolio management 30 6. Conclusions and Recommendations 30 Table 1. Risk Areas and Mitigation Approaches 32 Table 2. Characteristics of Client Economic Activities 36 Table 3. Product Specification Sheet: Credit Product 38 Table 4. Loan Analysis Form 39 Table 5. Financial Statements With Loan Loss Provision and Reserve 42 Table 6. Portfolio Management Indicators 43 1. Executive summary This report has been commissioned by the UNDP, Project Nr. 00042644 “Micro-credit programme for disadvantaged...
Words: 13173 - Pages: 53
...my study on “Credit Approval & Monitoring process of BRAC Bank Limited” with respect to Bangladesh Bank guidelines. My faculty supervisor Mr Khandaker Zahidul Alam, Assistant Professor of BRAC Business School, BRAC University, also approved the topic and authorized me to prepare this report as part of the fulfillment of internship requirement and gave me proper guidance and assistance over time. 1.2 Background of the Report Four years back, Bangladesh Bank undertook a project to review the global best practices in the banking sector and examines in the possibility of introducing these in the banking industry of Bangladesh. Four ‘Focus Groups’ were formed with participation from Nationalized Commercial Banks, Private Commercial Banks & Foreign Banks with representatives from the Bangladesh Bank as team coordinators to look into the practices of the best performing banks both at home and abroad. These focus groups identified and selected five core risk areas and produced a document that would be a basic risk management model for each of the five 'core' risk areas of banking. The five core risk areas are as follows- a) Credit Risks; b) Asset & Liability / Balance Sheet Risks; c) Foreign Exchange Risks; d) Internal Control & Compliance Risks; and e) Money Laundering Risks. Bangladesh Bank in one of it’s circular (BRPD Circular no.17) advised the commercial banks of Bangladesh to put in place an effective credit approval and...
Words: 15967 - Pages: 64
...Reject inference applied to large data sets Customer Inserts His/Her Name Customer Inserts Grade Course Customer Inserts Tutor’s Name Writer Inserts Date Here (Day, Month, Year) Reject inference applied to large data sets Introduction One of the most common use of reject inference technique is negotiation and application scoring. When prospective customers approaches a bank for a loan, it is important to evaluate their credit worthiness or rather if they are likely to default on the loan. Therefore, appropriate models are usually applied, which are pegged upon the bank’s previous performance, and on discovering the fundamental characteristics that could be useful in establishing the prospects of new customers. Apparently,...
Words: 2717 - Pages: 11
...________ Credit Appraisal System in Allahabad Bank Dr..Rosy Kalra* __________________________________________________________ Finance is required at every stage of business either for meeting day to operations or for starting up a new project. One of the important sources of raising finance is loans from banks. Commercial lending is one of the prime functions of any bank. But how does the bank appraises the creditworthiness of a borrower? What are the criterions to be fulfilled for granting loans? What are the tools used by the banks to appraise the loan proposal? These questions are being answered in this paper. This paper describes the credit appraisal process followed in Allahabad Bank. * Assistant Professor, Department of Accounting and Finance, Amity Business School, Amity University, Noida. A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories Indexed & Listed at: Ulrich's Periodicals Directory ©, U.S.A., Open J-Gage as well as in Cabell’s Directories of Publishing Opportunities, U.S.A. International Journal of Management, IT and Engineering http://www.ijmra.us 537 May IJMIE Volume 2, Issue 5 ISSN: 2249-0558 2012 ___________________________________________________________ Companies can avail a variety of credit facilities from banks for meeting the requirement of funds. The various credit products which can be availed are listed belowFunded Credit Facilities- it...
Words: 6141 - Pages: 25
