Essay About Corporate Banking And Speeches Of Rbifinancial Stability Reportgood Readings

Preparation
MSMED ActSMPCChannel Financing: Present in large industrial areas. Finding the entire supply chain. A large bank would underwrite the corporate bills. “Clusters”Myth: SME default more than large enterprisesIssues in SME: They don’t get timely credit, collateral issue, aweful financial statementsIssues in large/mid corporates: They don’t give good interest margins.Huge fees and commission, syndicate income, advisory, many sources of ‘treasury income’.Banks now are pushing wealth management services through SMEs- catch thme youngNIM of India Banks 2.8% averageROA, ROE, etc just know average industry numbersA. Corporate banking/ Global transaction banking: Simple receipts and payment- just big nameCash Management – Technology based servicesTrade finance solutions: ECBs,LCs, etc – relevant for global transactions, knowledge of Forex is helpfulTrustee and Security services – Mid office workNote: Financial Statement Analysis and grasp over ratios and interpretation is mustB. Risk Management/ComplianceKnow the Basel accords in and out. Basel I/II/III. Issues and solutionsWhat is market risk?How tomeasure market risk- VAR model. How does it workWhat is operational risk? How to manage it? – Mainly for engineersCompliance- To prevent fraud etcSAS, SPS software knowledge. FRM course will help in B.C. Treasury divisionWhat is treasury role?Writing research reports skills in important. Becoming dealer in front office is really about luck.Knowledge about fixed income markets, GSECsDealership positions- very lucrative role. Huge stress. Not a good long term career options. Need to need to all time zones.Importance of treasury dept has increased a lot in recent yearsDerivatives trader requirements: FLR/CLR/Derivatives/Structured Products/Currency, interest rate swaps.In India, swaps are used for speculation instead of using them for hedging- Deutsche Bank controls most of the marketFixed income trader: Durations, Yield curve,etcRead Working capital, trade finance caseletsStudy developments in NPAsSMA0, SMA1,SMA2 category of NPANPAs in Infra- study reasons, problemsDebt contractsare no longer obeyed in IndiaDetect early warning signalsCorporate debt recovery cells? What are they doing?Speeches of RBIFinancial Stability ReportGood readings before placementBe clear about BASELsNachiket Mor report on Differentiated banking licenseNPAs are not rising because of cycles.Develop an opinionFinancial inclusion- new thrust area of government- impacts retail bankingFinancial stabilityMandatory readings for developing an opinion on Indian Banking issuesSubbarao speech: Five frontier challenges for Indian BankingGandhi on Interest rate swaps in IndiaRaghuram Rajan’s speeches of late on credit, inflation