Bnb Credit Union

In: Business and Management

Submitted By clarment
Words 1674
Pages 7
To Adjust or Not to Adjust: The Case of BNB Credit Union
Background Information
BNB Credit Union was founded by the Beiterman family over 100 years ago in the small town of West Klirk, GA. Since its founding, BNB has served the local population with mortgage, auto, and small business loans, as well as otherbanking services. Because of West Klirk’s remote location, BNB was the only bank used by most of the members of the community. In the last twenty years, BNB has struggled to maintain its position as the primary bank of the local community. Online banking services, heavy marketing by large banks in nearby towns, and a small branch office opened in West Klirk by a national banking chain have all served to reduce BNB’s profits.
In order to improve their shrinking deposits and loan portfolio, BNB’s management was forced to increase the interest rate paid on savings accounts, and to reduce interest rates charged on several types of loans. These measures further dipped into BNB’s profit margin, but allowed the credit union to retain most of its customer base. Friendly customer service and less stringent regulations for credit unions also helped.
The situation changed with the banking debacle in 2009. The local branch of the national bank closed in early 2010, and lending limits and new restrictions on many of BNB’s competitors have allowed BNB to slowly improve profit margins. However, BNB still hasn’t fully recovered. The Beiterman family has offered the management team significant bonuses if they can improve profits during the upturn without exposing the credit union to too much risk. The current manager, Sam Oliver, has been pushing his team to do just that.
Two weeks ago DSO, Inc., a local manufacturing firm, approached Judy Intersan, one of BNB’s loan officers, for a $1,000,000 loan to expand their facilities. The company was seeking…...

Similar Documents

Case Project 11-1: Credit Union Network Security

...CREDIT UNION NETWORK SECURITY CHECKLIST ___ Make sure that all software and firmware for all appropriate devices are up to date and configured correctly. ___Operating system and server configuration: All operating systems should be up to date and all passwords should be sufficient and not weak, and proper configurations of all directories. This also includes making sure that the network administrators have the knowledge and experience. ___Make sure that there is a log of equipment being placed in and removed from the facility must be kept at both locations (branches), listing what equipment was removed, when and by whom. ¬¬¬¬___There SHOULD be signs at the door(s) marking the room as restricted access and prohibiting food, drink, and smoking in the computer room. ___Each computer room SHOULD have redundant access to power, cooling, and networks. There should be at least an 18" access floor to provide for air flow and cable management. Computer rooms should have air filtration. Computer rooms should have high ceilings to allow for heat dispersal (Heare, 2011) ___There MUST be regular offsite backups of essential information. There must be a backup policy in place listing the procedure for restoring from backup and allowing for the scheduling of practice runs to test that the backups work ___There should be at least one security guard posted at near the computer rooms in each branch and should also be trained to follow and enforce physical...

Words: 1689 - Pages: 7

Gaining Power and Influence in the Credit Union

...Running head: GAINING POWER AND INFLUENCE Gaining Power and Influence at the Credit Union Jessica L. Styer Trident University International MGT 302 Module 2 SLP Gaining Power and Influence at the Credit Union “Everyone has power. Everyone. And, I don’t believe that power is a bad thing.  The issue becomes what kind of power a person has and how someone uses that power.” (Lauby, 2010) Referent Power and Expert Power are the two main types of power that I use to gain power and influence in my position as a service and sales trainer at the credit union. Referent Power Referent power “is sometimes thought of as charisma, charm, admiration, or appeal. Referent power comes from one person liking and respecting another, and strongly identifying with that person in some way.” ( I have been told by other co-workers that I have charisma and appeal. I have a very positive outlook at work and in my training sessions. I train on the two things that most people struggle with; consist exceptional member service and sales. This is why I use referent power to influence my trainees. Trainees come to me when things are not going well and they are very negative. If I followed the same mindset as my trainees, then we would not get any improvement. I need to show them that they can be successful and sales and member service is positive. Expert Power Expert power is “when you have knowledge and skills that enable you to understand a situation, suggest solutions...

Words: 905 - Pages: 4

To Adjust or Not to Adjust: the Case of Bnb Credit Union

...Case 2: Ethics To adjust or Not to Adjust: The case of BNB Credit Union ACCT 315-01 September 5 2013 Personal Ethical Code What do you consider to be right and wrong? I am a Buddhist. What I believe to be right is to follow five precepts of Buddha: abstaining from harming living beings, stealing, sexual misconduct, lying, and intoxication. In addition, I will follow rules and regulations made by specified society or countries or organizations. On the other hand, not following the conducts mentioning above will result in wrong doings for me. What is your priority in life? My priority in life is to stay alive with good health and to obtain a regular and sufficient income. My top priority is to make my family, as well as the people around me happy by providing love, support, financial security, care and protection. How far are you willing to go to make money? I do not have specific limits when it comes to money, but I need a sufficient income to afford a normal, comfortable life. Truthfully, I want as much money as I could get, but it must be from honest and legal business practice. Honestly, since my country, Myanmar, is a developing country, I would like to make enough to contribute to my society. How do you wish to treat others? I will treat people in a nice and friendly manner, even if they are not treating me nicely during our first meeting. However, the next time we meet, I will be careful with people who were not nice to me because they could...

Words: 1521 - Pages: 7


...Module 4 Demand for Credit: Companies demand credit for various operating, investing and financing activities. Operating activities – many companies have cyclical operating cash needs. For example, manufacturers of inventory or retailers that purchase merchandise for the end of year holiday season. Investing activities – companies routinely require large amounts of cash for investments including purchases of new equipment and property and for corporate acquisitions. Important for start-ups and growth companies. Financing activities – for issuance of debt for repayment of maturing debt obligations or the repurchase of common stock. Supply of Credit: Trade credit – from supplies is routine and most often non-interest bearing. Bank loans – banks structure financing to meet specific client needs. Bank regulators require that banks hold capital in proportion to their loan portfolio. Revolving credit lines – loans that companies draw on as needed. They are like credit cards because a company can take cash out as needed and make payments as cash is available. Lines of credit – are guarantees that funds will be available when needed. These LOC act as backup or interim financing. Letters of credit – facilitate private international transactions. A letter of credit interposes a bank between the two parties to a transaction. The letter provides a guarantee of payment from the buyer. The benefit is that is substitutes the bank’s credit......

Words: 284 - Pages: 2


... of farmers turned out to be defaulters. When such difficulty arises, the lending institution faces a problem. This study focused on the analysis of determinants of loan repayment performance of smallholder farmers in Kalu district, Amhara National Regional State. In this study, primary data were collect from 130 randomly selected borrowers using semi-structured questionnaire. In addition, secondary data were collected from different organizations and pertinent publications. A two-limit tobit regression model was employed to identify factors influencing loan repayment and intensity of loan recovery among smallholder farmers. A total of 14 explanatory 431 International Journal of Economics, Business and Finance Vol. 1, No. 11, December 2013, PP: 431- 446, ISSN: 2327-8188 (Online) Available online at variables were included in the empirical model and out of these, six variables were found to be statistically significant. These are total land holding size of the family (hectare), total livestock holding (TLU), expenditure on social festivals, number of years of experience in agricultural extension services, purpose of borrowing and source of credit. Regarding the sign of the significant variables, expenditure on social festivals has a negative and significant effect on loan recovery rate while the remaining five variables have a significant and positive effect. Variance inflation factor were calculated to detect multicollinearity and association among all...

Words: 7778 - Pages: 32


... for an organization to keep his employees ready to face the change, and accordingly change in order to adapt the change in order to sustain in this competitive market scenario.  MAINTENANCE FUNCTION The third function is maintenance. In contrast to the motivation function, which attempts to stimulate performance, the maintenance function is concerned with providing those working conditions that employees believe are necessary in order to maintain their commitment to the organization. 7  MOTIVATION FUNCTION The motivation function begins with the recognition that individuals are unique and that motivation techniques must reflect the needs of each individual. Within the motivation function alienation, job satisfaction, performance appraisal behavioral and structural techniques for stimulating worker performance, the importance of linking regards to performance, compensation and benefits administration and how to handle problem employees are renewed. In recent years, more emphasis was given on manpower because of the change in the society, attitude of an individual etc. etc. In a study ASTD i.e. the AMERICAN SOCIETY FOR TRAINING AND DEVELOPMENT recognized nine are of HRM.  Training and Development  Organization and Development  Organization/Job Design  Human Resource Planning  Selection and Staffing  Personnel Research and Information Systems  Compensation/Benefits  Employee Assistance  Union/Labour Relations The outputs of this model are:  Quality of...

Words: 15095 - Pages: 61


...Credit Card Use September 15, 2010 The article I found about interest rates is called “Credit Where It’s Due.” This article talks about credit unions and how they offer lower rates and how they are becoming more popular. This article states that more people are looking into credit unions because of lower interest rates and higher savings rates. I think it is relevant to credit card use because if more people saw this article, more people would think about joining these credit unions and receive lower interest rates on credit cards. Article 2 is called “Win at the Credit Scoring Game.” And is about credit reports and ratings. The first thing you need to do is learn your score. They also say that you should never, ever be late on payments. Also always remember the “magic 20%. This 20% is about how much you owe compared to how much credit has been extended to you. This article is relevant to credit card use because it tells you what to do if you spot an error, how to improve your score. All the things that people should realize if they have a credit card. The article that I found is about money management and is called “5 East Cost Cutting Tips”. It includes things like to stop paying credit card interest rates, get a better price no Internet service, slash cell phone costs, reconsider landlines, and reducing bank fees. This article gives you all the ways you can cut and how to do each. This article is relevant to the topic of credit card use because it shows you......

Words: 381 - Pages: 2


...1. Most credit cards require that you pay a minimum monthly payment of two percent of the balance. Based upon a balance of $5,270.00, what would be the minimum monthly payment (assuming no other fees are being applied)? I found that the minimum payment that I would be making is $104.40 per month because it is two percent of $5,270. 2. Considering the minimum payment you just calculated, determine the amount of interest and the amount that was applied to reduce the principal. Hint: You’ll need to find the total interest for the year first. The total interest for the year would increase my balance of $5,270 to $6,823. If I determine the amount of interest that will go into my monthly payments, then my payments will be $136.46 instead of $104.40. 3. Consider one of your credit cards. What is the balance? How is the minimum monthly payment determined? What would be the minimum payment? How much of the minimum payment goes towards interest? How much of the minimum payment goes towards the principal? If you do not want to share an actual balance or do not have a credit card, calculate these amounts using an imaginary credit card balance. My fake credit card would have a balance of $10,000. The minimum payment per month is determined based on my income. The minimum would be 5% of the $10,000. Two percent of the minimum payment would go towards interest. One percent of the payment would go towards the principle. 4. Now, examine the terms of one of your credit cards...

Words: 605 - Pages: 3

Credit Union Organisation

...JOY CREDIT UNION (JCU) MEMBERSHIP Membership shall be open to all members of International Central Gospel Church – Joy Temple. To be recognized as a member of the Credit Union, prospective members are required to pick up membership forms at a cost of GH¢5.00 each. Completed application forms together with a copy of a current ID, 2 copies of Passport Size Pictures, and an application processing fee of GH¢10.00 will be required to complete membership formalities. Being a member does not automatically qualify a member for loan facilities. MINIMUM CONTRIBUTION The minimum contribution per member shall not be less than GH¢2.00 per week. LOANS FACILITIES To qualify for a loan, a bona fide member should have contributed regularly for a period of not less than 6 months. Each member will qualify for a loan of up to a maximum of 80% of their entire savings. Once a loan facility is advanced to a member, that member is required to not only make good their regular weekly contribution, but also to honour their monthly loan obligations. A default in any of these obligations will be considered a default in loan repayment and loan facilities may be called in. INTEREST ON LOAN Loan facilities advanced to members will attract an interest rate of 1% per month on a monthly reducing balance basis. Each loan facility will attract an arrangement and management fee of 1% flat on the face value of the amount advanced. LOAN APPLICATION NOTICE Any member requesting a loan facility must fill...

Words: 623 - Pages: 3

An Information System Security Breach at First Freedom Credit Union

...MIS 671 CASE STUDY 2 AN INFORMATION SYSTEM SECURITY BREACH AT FIRST FREEDOM CREDIT UNION Introduction The case is about an information system security breach at First Freedom Credit Union, a financial institution in the Southern part of the United States. First Choice Credit Union (FFCU has seven branches located throughout the metropolitan area. One branch is located at the FFFCU headquarters. Most employees at the FFCU has at least 5 years of service. The credit card information of 200,000 members has been stolen. This is highly sensitive information and it puts the members at critical risk. The security breach might cause loss of finances and other disturbances. Frank Sanders, the CEO of FFCU called a conference with all the executives of the FFCU. The nature of the conference was to discuss a security breach. A security breach that affected card member credit card numbers and personal information. Frank was uncertain if the breach had affected all members’ information or a portion. However, Frank was aware that fraudulent activity had already taken place on some accounts. Due to the fraudulent activity that had transpired Frank had canceled all current credit cards and was sending out replacement cards. Jaime O’ Dell, the chief information officer (CIO) was appalled because nothing had ever happened like this since his tenure with the company. Jaime felt the firewall being used was the top of the line, virus protested was updated daily and an intrusion...

Words: 2842 - Pages: 12


...Ian W Marsh The effect of lenders' credit risk transfer activities on borrowing firms' equity returns Bank of Finland Research Discussion Papers 31 • 2006 Suomen Pankki Bank of Finland P.O.Box 160 FI-00101 HELSINKI Finland + 358 10 8311 Bank of Finland Research Discussion Papers 31 • 2006 Ian W Marsh* The effect of lenders’ credit risk transfer activities on borrowing firms’ equity returns The views expressed are those of the author and do not necessarily reflect the views of the Bank of Finland. * Cass Business School, London, and Bank of Finland. E-mail: This paper was written while the author was visiting the Research Unit of the Bank of Finland. The Bank’s hospitality was exemplary and I am grateful to participants at the Research Unit’s Summer Workshop, the Bank of Finland Economics Seminar, Iftekhar Hasan, Tuomas Takalo, and Wolf Wagner for comments. Susan Yuska at the Chicago Fed was very helpful in guiding me through the Bank Holding Company Database. ISBN 978-952-462-340-7 ISSN 0785-3572 (print) ISBN 978-952-462-341-4 ISSN 1456-6184 (online) Helsinki 2006 The effect of lenders’ credit risk transfer activities on borrowing firms’ equity returns Bank of Finland Research Discussion Papers 31/2006 Ian W Marsh Monetary Policy and Research Department Abstract Although innovative credit risk transfer techniques help to allocate risk more optimally...

Words: 9763 - Pages: 40


...Chapter 2 MAIN DISCUSSION I. Definition of terms According to Laman, R.M. & Laman, V.P. (2010)., the birth of the credit system has made the use of the documents covering credit transactions both imperative and important, such documents are known as credit instruments. While credit transaction need not be evidenced by written contract, nevertheless, it appears sufficiently clear that it is better than they are. Credit instruments are documents that serve as an evidence of debt, this defines the responsibility of the debtor to his creditor and the right of the creditor to collect from the debtor at the specified time. Bonds are promises of the payment of interest and principals to the holder at a particular time. It is a written or printed acknowledgment of debt. It is a certificate of liability or obligation. Bonds are debt and are issued for more than one year. Stocks are permanent invested capital contributed by the stockholders or owners of a corporation which are proved by certificates. It is a share of a company held by an individual. Miranda (2001) defined check as a written order drawn by a depositor, directing it to pay on demand a specified sum of money. Check is the most commonly used bill of exchange. It is a written, dated and signed instrument. Promissory note is the simplest form of a credit instrument. It is a written promise of an individual to pay a certain amount of money at certain time in the future to an appointed person or bearer. II...

Words: 2422 - Pages: 10


...“The need for power to defend their interests against management has been the major force that has driven employees to organise collectively.” “Theoretically, the rationale for unionisation appears sound. However, in practice, ensuring the solidarity of workers and controlling the supply of labour is problematic.” (Finnemore, 2013). Based on the statements above, present a detailed discussion on trade unions. Your discussion should include reasons why employees join trade unions, goals on trade unions, trade union structure and organisational effectiveness and closed shop and agency shop agreements. Darryl John Iyaloo Human Resource Management 311 (BBA) 28 April 2016 ABSTRACT This paper provides a detailed discussion on the South African Trade Union Movement. Using the case study of The Marikana Fallout, this paper will attempt to unpack why employees join trade unions, goals of the trade unions, trade union structure and organisational effectiveness, closed shop and agency shop agreements. 1. Introduction 2. The South African Trade Union Movement: A Brief History 3. The Case of The Marikana Fallout 4. The Reasons Why Employees Join Trade Unions 5. Goals Of The Trade Unions 6. Trade Unions Structure and Organisational Effectiveness 7. Closed Shop and Agency Shop Agreements 8.1 Closed Shop Agreements 8.2 Agency Shop Agreements 8. Conclusion...

Words: 3906 - Pages: 16


...RESEARCH METHODOLOGY Introduction to Credit Appraisal: Credit appraisal means an investigation/assessment done by the bank prior before providing any loans & advances/project finance & also checks the commercial, financial & technical viability of the project proposed its funding pattern & further checks the primary & collateral security cover available for recovery of such funds. Problem Statement: To study the Credit Appraisal System in SME sector, at State Bank of India (SBI), Uttarsanda. Objectives: * To study the Credit Appraisal Methods. * To understand the commercial, financial & technical viability of the project proposed & it’s funding pattern. * To understand the pattern for primary & collateral security cover available for recovery of such funds. Research Design: Analytical in nature Data Collection: Primary Data: * Informal interviews with Branch Manager and other staff members at SBI bank. * E-circulars of SBI Secondary Data: * Books and magazines * Database at SBI * Internal reports of the banks * Library research * Websites Expected contribution of the study: This study will help in understanding the credit appraisal system at SBI & to understand how to reduce various risk parameters, which are broadly categorized into financial risk, business risk, industrial risk & management risk associated in providing any loans or advances...

Words: 28662 - Pages: 115


... about? Rohit: You know there is a great demand for American home loans, which we buy from the U.S. banks. We then convert these into what is called as CDO’s (Collateralized Debt Obligations). In plain English – this refers to buying home loans that banks had already issued to customers, cutting them into smaller pieces, packaging the pieces based on return (interest rate), value, tenure (duration of the loans) – and selling them to investors across the world after giving it a fancy name, such as ‘High Grade Structured Credit Enhanced Leverage Fund’. Me: Wow! I would’ve never guessed that boring home loans could transform into something that sounds so cool! Rohit: hahaha…actually we create multiple funds categorized based on the nature of the CDO packages they contain and investors can buy shares in any of these funds (almost like mutual funds…but called Structured Investment Vehicles or SIV’s) Me: Dude, you make your job sound like a meat shop…chopping and packaging. So, in effect when an investor purchases the CDO’s (or the fund containing the CDO’s), he is expected to receive a share of the monthly EMI paid by the actual guys who have taken the underlying home loans? Rohit: Exactly, the banks from whom we purchased these home loans send us a monthly cheque, which we in turn distribute to the investors in our funds Me: Why do the banks sell these home loans to you guys? Rohit: Because we allow them to keep a significant portion of the interest rate charged on the home...

Words: 2208 - Pages: 9