--%>
Assignment Help - homework help

Bank assignment

You have just been hired as the branch manager for a big bank in XYZ. You were told that the bank is going to open a new branch at Island Learning Centre of the Open University of XYZ. The management of the bank is much concerned that the new branch might not be able to attract adequate customers to meet its gain projection. Your task is to propose the different services the bank must offer originally to form an adequate customer base. Below is a list of the services the branch could propose:

• current accounts
• savings deposits
• security underwriting
• personal trust management services
• retirement savings plans
• venture capital loans
• plant and equipment loans
• automobile loans
• residential real estate loans
• home improvement loans.

a) List five kinds of information you will require concerning the local community to aid you decide which of numerous possible services are likely to have adequate demand to make them gainful. Elucidate your answer in short.

b) Divide the probable services into two groups: those you think must be offered opening day and those you believe can be provided later as bank grows. Elucidate your outcome.

E

Expert

Verified

Part (a): Information collected from the local community include

(1) Historical growth rate of underwriting securities in domestic market. The bank can estimate the potential growth rate of this business. Securities underwriting can be profitable for emerging markets

(2) The sentiment of the property market. The sentiment of property market can determine the demand of the mortgage in the market

(3) The penetration rate of retirement savings. This information can help us to estimate the demand for retirement saving plans for the local community.

(4) The forth information required to determine the sentiment of the local population about investment services as it can help the bank to determine the potential growth rate of the personal trust services.

(5) The fifth information collected from local community is the factories in the city. It can be used to estimate the demand for plant and equipment and hence the amount of loans needed

Part (b):

The list of services that should be offered on the first day of business include:

  • Current accounts
  • Saving deposits
  • Residential home loans
  • Home improvement loans
  • Retirement saving plans and
  • Personal trust management services

 

The remaining part of the services in the list should be offered later. The first group of the services is the basic service offered by the bank to personals. For the new bank in the market, it is very important to obtain market presence. The first group of banking service is required to build up the brand.

   Related Questions in Corporate Finance

  • Q : Explain Corporate Development Corporate

    Corporate Development: Corporate development is a term which references the range of planning options and strategies which can assist to move a company toward its targets. The procedure of this kind of strategic development can be exerted to just abou

    		•
  • Q : What are Workpapers Workpapers : In

    Workpapers: In finance world, work papers are documents which are created during the procedure of computing the financial records of a business or individual. The accounting professional which is tasked with examining the book-keeping of a business mi

    		•
  • Q : Purchaing or leasing problem Crawford

    Crawford Corporation is planning to lease a machine for the next 4 years for an annual lease payment of $3,000 paid in advance, plus a non-refundable initial fee of $3,000. There is a 1-year delay for the tax benefits of leasing. Crawford may buy the machine, deprecia

    		•
  • Q : Expected return for a portfolio What is

    What is the expected return for a portfolio consisting of 200 shares of Nike, 200 shares of Home Depot, and 400 shares of Intel if their expected returns are 10%, 8% and 12% respectively, and their current prices are $25, $50, and $25 per share respec

    		•
  • Q : Intrnational financer what are the

    what are the objectives of international finance

    		•
  • Q : Problem on required rate of return

    Tudor Online Publishing Corporation has tax rate of 35%, debt-to-equity ratio of 25%, and has (leveraged) beta 1.25. The riskless rate is 3% and the market return is 12%. Windsor Publishing Company is an all equity company and is in the same business. What is the requ

    		•
  • Q : What are flow variables Flow variables

    Flow variables: Any variable, whose magnitude is evaluated over a time period, is termed as glow variable.

    		•
  • Q : Do expected equity flows coincide with

    Do expected equity flows coincide along with expected dividends?

    		•
  • Q : MIRR & IRR Projects Answer using

    Answer using Microsoft Word and your answer should be between 100 and 150 words Question1. Identify the major

    		•
  • Q : What is EBITDA What are Earnings before

    What are Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)?

    		•