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Key Principles on Asset Allocation Strategy

Everyone just wanted to become an asset-generating investor, but there are only a few chosen ones that can actually become one. Why? Because being an investor is not all about skills, it also requires the attitude to be an effective asset-making investor.

You see, investments do not always turn out to be good. There are good times and there are also bad times when it comes to investment.

What you should do is use the best strategies the industry offers like an asset allocation strategy or the like. This strategy is used to balance the risk that an investment may present over a foreseen reward by simply adjusting each assets percentage value. The adjustment will basically depend on your goals, investment time frame, and tolerance. Continue reading →

Devising Online Banking Strategy

Going to the bank to deposit, withdraw, or for any other reason, however small it is, can get a little inconvenient. That is especially true when you have a lot of things to do or you are roped in the office for a very important meeting. Or, when you are out to an island for vacation where regular banking is not possible.

For these reasons, you would really love online banking. This type of modern-age banking system will surely make your life a lot easier wherever you may be.

Online banking, which is also known as e-banking or internet banking is an effective and new way of doing bank transactions through the internet or online. Continue reading →

Non Performing Loan – NPL in Banking Industry

Applying for a loan in a bank is a bit difficult these days because finance institutions have already become so keen in choosing loan applicants. Among the very many reasons for this is a non performing loan, which is basically a loan that has stopped to be updated.

Once a loan is no longer paid right on time, it starts to accumulate interest that gets bigger over time.

And as long as the non performing loan continues to receive no upgrade the interest and penalty piles up to an impossible amount that the loan becomes totally dormant. Or, the loan can be updated and condoned given that it is paid in full or renewed.

A non performing loan taints the credit score of a person or a depositor. This keeps a person from getting another loan or be approved even from other banks or financial institution because credit score data is being published for financial companies and establishments for future references. Continue reading →

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 →