Monthly Archives: January 2013

The Concept of Net Interest Margin

Banking may seem to be very easy for a simple depositor, but it is not to someone who is making a business out of it. For starters, there are so many terms that need to be learned and computations which formulas are a bit tricky for the simple minds.

But those are the reason why there are courses and even post baccalaureate degrees for banking and finance. These degrees are intended to teach people to learn about the best practices in banking and finance.

Among these is the highly important net interest margin where generally, the profit of the bank is drafted.

Net interest margin or just NIM is simply the difference between the income generated by the bank from loans and the amount they pay for deposits in relation to the interest-earning asset. Continue reading →

Designing Micro Finance Strategy

You have probably heard the term micro finance time and again but you never actually thought about it long enough to get its actual meaning.

In fact, the reason why you might have started taking it a bit seriously is that because you want to partake in the benefits and features of a micro financing institution for your business. But what is micro finance really?

Micro finance can simply be described as lending to small time entrepreneurs or businessmen. These people normally don’t have any means of transacting with banks or other financial institutions. Continue reading →

What is Loan to Deposit Ratio for Banking Industry?

The professional looks and taste is just best for those who have a career in the bank industry because they are among those who have the most difficult jobs. In fact, they are actually working on double tasks—customer service representatives of the bank and financial computers of the banks clienteles.

On top of that are the many formulas that they need to memorize in able to come up with the most accurate computations that their clienteles need. Aside from those is the in-bank computation that they need to do in order to render their company effective or profitable.

Now, these are very critical computations and they need to be properly addressed or the bank is at risk of misleading their members. Continue reading →

Human Resource Management for Banking Industry

The human resource is among the core personnel of a company however small or big it is. This may be a single or group of personnel whose task is to bring in the best people for the banking positions available in the company.

A bank may have a more metus way of gauging their staffs and incoming employees due to the fact that these people are money and the dignity of the company. Of course, the company cannot give any chances to shady personalities so the human resource management for bank needs to have a very keen eye for red flags on people.

Here are some of the factors that human resource management for bank requires: Continue reading →

What is Legal Lending Limit?

Did you know that there is more to your bank than just a simple money-keeping institution? Your bank is also a loans company. And since you are a regular clientele, you are among the ones who are qualified to enjoy this special feature of your bank. There should be many types of loans your bank offer.

Among that makes the list are home, auto, and personal loans among so many others. One thing that you need to remember when loaning is the legal lending limit of your bank.

It does have a limit that is regulated by the government finance authority as well as the federal laws, so you have to take this into consideration when you sought to avail of the service or benefit. Continue reading →

Managing Credit Card Business

With the very many “runaway” credit card holders nowadays, is a credit card business still as viable as before? This is a question that you may ask yourself whenever you hear or read about creditors trying to bail out of their credit card dues.

And it may also be the same question you want answered each time a credit card business agent approaches you to sell you an account or two. In fact, you might even have a lot of questions in your mind about this business.

For that, here are some of the things that you want to know about credit card business before you accept one: Continue reading →