Banking Industry Overview Flashcards
Provide examples of reasons why businesses need commercial loans?
Working capital, plant & equipment, mergers & acquisitions.
Depending on whether a borrower has pledged an asset or not will determine whether a loan is…
Secured or unsecured.
What are the four common commercial product types?
- Line of Credit
- Letter of Credit
- Term Loan
- Lease
A “x” is a guarantee letter from a bank on behalf of a buyer. If the buyer is unable to pay the loan, the bank will cover the required amount. Otherwise known as a “x”.
A “letter of credit” is a guarantee letter from a bank on behalf of a buyer. If the buyer is unable to pay the loan, the bank will cover the required amount. Otherwise known as a “bank guarantee”.
Corporate Investment Banking:
Supports large national or global companies in “x” or “x”.
Corporate Investment Banking:
Supports large national or global companies in “raising financial capital” or “issuing securities”.
Commercial Real Estate (CRE):
Provides “x” to companies seeking to “x” a commercial property.
Commercial Real Estate (CRE):
Provides “long-term loans” to companies seeking to “acquire, refinance or redevelop” a commercial property.
Specialty Lending:
Provides a niche-type of financing to specific groups such as different “x” with whom the bank has a strong relationship.
Specialty Lending:
Provides a niche-type of financing to specific groups such as different “government entities” with whom the bank has a strong relationship.
A personal loan is typically an “x” that is issued and supported only by the borrower’s “x”, rather than any type of “x”.
A personal loan is typically an “unsecured loan” that is issued and supported only by the borrower’s “creditworthiness”, rather than any type of “collateral”.
Ancillary services are services such as “x”, “x”, “x” & “x”.
Ancillary services are services such as “Online Banking”, “Wire Transfers”, “Overdraft Protection” & “Notary Services”.
A mortgage is an “x”, secured by the collateral of specified “x”, which the borrower is obliged to pay back with a pre-determined set of payments.
A mortgage is an “debt instrument”, secured by the collateral of specified “real estate property”, which the borrower is obliged to pay back with a pre-determined set of payments.
When banks offer treasury management services to customers, they do so to assist with:
- “x”
- “x”
- “x”
- “x”
- “x”
Treasury management offers FI’s the ability to leverage “x” or “x” and to diversify the “x” statement through a catalog of value-added products and services.
When banks offer treasury management services to customers, they do so to assist with:
- “Cash Management”
- “Trade”
- “Liquidity”
- “Account Management”
- “Fraud Prevention Capabilities”
Treasury management offers FI’s the ability to leverage “non-interest” or “fee-based income” and to diversify the “income” statement through a catalogue of value-added products and services.
Stage: Application/Origination
Purpose:
- “x”
- “x”
- “x”
Key Roles:
- “x”
- “x”
Stage: Application/Origination
Purpose:
- “Identify & qualify a prospective customer”
- “Determine potential needs & solutions”
- “Collect customer information & documentation for request(s)”
Key Roles:
- “Relationship Managers”
- “Relationship Manager Assistants”
Stage: Credit Underwriting, Decisioning & Customer Notification
Purpose:
- “x”
- “x”
- “x”
Key Roles:
- “x”
- “x”
- “x”
Stage: Credit Underwriting, Decisioning & Customer Notification
Purpose:
- “Analyse the request & financial information provided”
- “Take a decision on the request”
- “Communicate this decision back to the customer”
Key Roles:
- “Credit Underwriter”
- “Credit Officer”
- “Portfolio Analysts”
Stage: Document Preparation & Closing
Purpose:
- “x”
- “x”
- “x”
Key Roles:
- “x”
- “x”
Stage: Document Preparation & Closing
Purpose:
- “Complete & document due diligence”
- “Prepare loan documentation for customer closing”
- “Execute closing with the customer”
Key Roles:
- “Relationship Managers”
- “Closing Specialists”
Stage: Booking & Funding, Post Close Review & Servicing
Purpose:
- “x”
- “x”
- “x”
Key Roles:
- “x”
- “x”
Stage: Booking & Funding, Post Close Review & Servicing
Purpose:
- “Book loan to servicing system & disburse loan funds to customer”
- “Review executed loan documentation for accuracy”
- “Maintain general account information (address, phone, collateral liens)”
Key Roles:
- “Closing Specialists”
- “Loan Operations”
