TAILIEUCHUNG - Lecture Retail and merchant banking – Lecture 19

After studying this chapter you will be able to understand: Basic lending principles, safety issues, diversification of risk, benefits of diversification, loans and advances, classification of loans, advances,. | Revise Lecture 19 Basic Lending Principles Basic Lending Principles Safety Issues Basic Lending Principles Safety Issues The persistent failures of banks to lend sensibly in Pakistan and in many other countries have brought the question of safety in lending to the fore; Why do banks persistently lend so imprudently and how should lending be done at minimum risk? Basic Lending Principles Safety Issues One essential problem is the human and managerial challenge of motivating employees of banks to cater to the interest of the owners (shareholders) of the bank. The history of banking is replete with episodes of employees favouring friends and relatives with loans. Basic Lending Principles Safety Issues In some countries, there are well-defined market rates for bribes for obtaining loans from banks. This problem is also present in Pakistan, though the record of Pakistan’s banking system in this aspect is much better than that of many other countries. Basic Lending Principles Safety Issues

• Marketing - Bán hàng
• Merchant banking
• Retail banking
• Lecture Retail and merchant banking
• Banking system
• Classification of loans
• Public issue management
• History of Banking
• Banking system in Pakistan
• Pakistan Banking
• History of Pakistan Banking
• Branch banking
• Unit banking
• Group Banking
• Universal banking
• Asset management banking
• Basic lending principles
• Venture capital
• Financial services
• Project cost
• Profitability management
• Safety Issues
• Lending policies
• Evaluation of loan proposals
• Discounting of bills
• Negotiable instrument
• Promissory notes
• Negotiable instruments
• Bearer cheque
• Types of cheques
• Mutilated cheque
• Banker’s right
• Deposit account
• Types of deposit account
• Categories of securities issue