Month: March 2019

All About Non-banking Financial Companies (nbfcs)

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A non-banking financial company (NBFC) is defined as a company registered under the Companies Act, 1956 and indulges in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by the government or any local authority or other securities of marketable nature, leasing, hire-purchase, insurance business, and chit business. However, it does not include any institution whose principal business is that of agricultural activity, industrial activity, and sale/purchase/construction of immovable property. An NBFC basically does work similar to that of a bank without actually meeting the legal definition of a bank.

So, if NBFCs function in a way similar to a bank, then how are they any different? Heres a list of their different aspects:

(i) NBFCs cannot accept demand deposits, which are funds deposited at a depository institution that are payable on demand, much like your current or savings bank accounts.

(ii) Deposit insurance facility of DICGC (Deposit Insurance and Credit Guarantee Corporation) is not available for NBFC depositors, which is not in the case of a bank.

It is mandatory under Section 45-IA RBI, 1934 for every NBFC to register with the RBI as it regulates the working and operations of NBFC within the framework of the RBI Act, 1934 and the directions issued under this Act. A company that registers as an NBFC under the RBI should have a minimum net owned fund of Rs. 2 crore. Registering with the RBI involves the submission of an application by the company in the prescribed format along with necessary compulsory documents. If and when the bank is satisfied that the conditions are fulfilled, it issues a Certificate of Registration to the company. Once an NBFC holds a valid Certificate of Registration, it can hold public deposits. However, the NBFCs that accept public deposits should comply with the Non-Banking Financial Companies Acceptance of Public Deposits Directions, 1998, as issued by the Bank.

There are four different types of NBFCs, each having different functions:

Equipment leasing companies

Hire-purchase companies

Loan companies

Investment companies

Rules and regulations are part of every firm and deal. It is always important to read the fine print of any document before signing it. NBFCs have their own set of regulations. The following regulations are considered important to the depositor at the time of investment.

NBFCs are allowed to accept or renew public deposits for a minimum period of 12 months and a maximum period of 60 months. They cannot accept deposits repayable on demand.

NBFCs are not allowed to offer gifts/incentives or any other additional benefits to the depositors.

Deposits with NBFCs are not insured.

The repayment of deposits by NBFCs is not guaranteed by the RBI.

Effective Features Of Breeze Mobile Banking

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One of the most interesting things about technology is that when developers introduce different applications to the public, they mistakenly believe that the more features and the more complex the features, the more impressed customers will be. Unfortunately, many uninformed consumers are sucked into buying products because they are loaded with what appear to be incredible and robust features. However, these people soon discover that all the fluff is just that, meaning the features are usually over-rated and rather than making the experience smoother, they actually make things more complicated and time-consuming.

When Standard Chartered Bank developed Breeze, the online and mobile banking solution that runs on iPhone and iPhone, they wanted bank customers to have a genuine, user-friendly application with features that added true value to the overall experience. The final product rolled out to beta testers in Singapore and Malaysia achieved the banks goal.

However, for the primary features seen on other mobile banking applications, the bank developed Breeze so these were enhanced. In addition, Breeze provides bank customers with new features, one in particular called eCheques, which is the worlds only electronic check processing system. Along with these features, Breeze has something unexpected in the form of functional but also fun features.

Some of the standard features that have been made more robust on Breeze include things like viewing account balances and transferring funds. Along with the new eCheques feature, Standard Chartered Bank also incorporated an ATM finder, which makes it possible for people to find the closest ATM anywhere needed in a matter of minutes. Instead of making unnecessary phone calls or driving around aimlessly, the information can be pulled up using Breeze with no effort at all. Standard Chartered Bank will also be introducing new features as time goes by to meet growing customer demand.

The entire online and mobile banking application enhances the customers banking and financial experience but the designers and developers added a few fun features just because they were just that fun. When people look at the enhanced conventional features, the revolutionary features, the future features, and the fun features, it is clear that Breeze is unlike any other mobile banking application ever created.

One of the fun features is the background of the iPhone when Breeze is downloaded. During the day, the background is bright, sunny skies that represent daytime but then at night, the background changes to a dark sky filled with shiny stars. Although the application is not necessarily something that adds value, it is fun.

Another fun feature of the Breeze application is the ability for users to personalize their accounts by using different icons, colors, and even avatars. Some people appreciate the ability to add a little personality into the way their account appears while others are not as concerned but either way, this feature is fun. Then one of the most interesting features is moving money by shaking the iPhone. Standard Chartered Bank wanted customers to enjoy the experience with Breeze while also having a mobile banking solution that would save time and effort when managing accounts.

Investment Banking Services To Simplify Wealth Management

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Sequoia Presidential Yacht is a field of banking that aids individuals, companies or governments in raising capital. In commercial banking, the institution collects deposits from clients and gives direct loans to businesses and individuals. Unlike commercial banks and retail banks, investment banks do not take deposits. From 1933 (Glass-Steagall Act) until 1999 (Gramm-Leach-Bliley Act), there remained a strict separation maintained involving the two varieties of banking within the United States. Since 1999 that practice has moved to a environment whereby commercial banks might also participate inside investment banking side. Other industrialized countries, including G8 countries, have historically not maintained this type of separation.

Would have to an analyst choose for the way to leave investment banking about the whole and a lot of attain their experience might be leveraged to consider into positions that will be normally require more experience. After all, many analysts wrack up double several from the average workforce and must be effective their work with an intensity level that’s truly one with the highest inside the company world.

So I may not expect everybody to sit down back and do nothing about it. I think that the actions were fairly justified. Now would this stay forever? We would have to watch and find out. Now if you look on the nature with the regulation which is happening, it is all around, making banks safer and also it’s around being sure that what banks can do with depositors money is limited to safer activities; meaning that you simply cant do some in the stuffs that got us into trouble in just a commercial bank, you therefore need different licence – a merchant banking licence.

Earlier, you talked about the central bank and AMCONs efforts in resolving the banking crisis. But since the crisis was resolved, there may be the insinuation that the Nigerian banking marketplace is over-regulated, when compared with its peers around the continent. Do you support such a view?

Many individuals don’t discover success off from the investment of 1 stock but from your successful portfolio which helps in diversifying their investments. When new traders invest solely in markets just like the Futures trading or Forex trading system theyre greatly restricting their potential of success and leaving no avenue outside of these investments inside the case your investment won’t produce the required results.

As second-year MBA students chatter at cocktail parties, one with the major topics of discussion is who landed investment banking offers. Although the reputation of investment banking has taken a beating following a 2008 economic crisis, corporate finance efforts are still a terrific way to achieve valuable business experience and earn a handsome paycheck.

During previous economic downturns the regular stance was that cash was king. If stock markets and property prices were choppy, simply keep your money inside bank. There was never any doubt on the safety of that money. However the entire world we are now living in has changed. As a UK saver you might be now only protected for 50k in each bank. If the bank goes under, you could lose money. A ridiculous notion 10 in the past but very realistic now. Indeed for all those who invested into Icesave a few of years back, they eventually got lucky and were repaid by the UK Government. The Treasury were convinced they’d be reimbursed by the Icelandic Government but the money never came. Such a future failure may now fall on deaf ears.

Understanding how these models work and also the theory behind them will help you answer a lot in the technical questions that may get thrown at you within an interview. Know the capital asset pricing model (CAPM) and how to calculate the weighted average expense of capital (WACC). Know how to un-lever a beta.