RISK MANAGEMENT.  The total outstanding exposure to any single person shall not exceed 30% of the bank’s.  The total outstanding exposure by a bank.

Slides:

Advertisements

Similar presentations

Presented by. C.A Suresh Kumar Subrahmanyan & Associates Office: 14 A/11. Manish Nagar J.P.Road, Andheri (West) Mumbai 53. CGTMSE - IMC/ICSI

Advertisements

Acceptance Of Deposits.  “Deposit” includes any receipt of money: a) by way of deposit or a) loan or a) in any other form.

1. Margin Trading System- MTS Legal Frame Work The operations of MTS are governed under the following:  Securities (Leveraged Market and Pledging) Rules,

Banking sector Reforms. Since 1991, the Indian financial system has undergone radical transformation. Reforms have altered the organizational structure,

Regulatory role of RBI in microfinance NBFC-MFI By- Vidushi bindal Shruti gupta Himani pandey.

Buy Back of Shares or Other Specified Securities.

Investor Presentation Q4 FY’11 S.E. Investments Limited Investor Presentation Q4 FY’11.

Ashish Sharma B.Com, CS Final.  Meaning  A non-banking financial company (NBFC) is a company registered under the Companies Act, 1956 and is engaged.

JB Nagar Study Circle CA Bhavesh Vora 1.

LIMITED LIABILITY PARTNERSHIP BY CA. RANJEET NATU PARTNER NATU & PATHAK CHARTERED ACCOUNTANTS.

SBP’s Initiatives for SMEs Financing. Initiatives Issuance of a separate Prudential Regulation (PRs) for SME financing. Help in capacity building in human.

Chapter Six: Credit Risk Management. Business Risk Operational Risk Financial Risk Technology and operations outsourcing Derivatives documentation and.

© 2004 The McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Chapter 15 Leases.

CHAPTER FOUR – SOURCES OF FINANCE. SOURCES OF FINANCE  Internal Sources  Refers to funds that are generated from within the firm itself – from owner’s.

FAIR III – Session V Developing the Asian Markets for Non-Performing Assets - Developments in India By Sumant Batra Partner, Kesar Dass B & Associates.

National Clearing Company of Pakistan Limited 1. Back Ground The Securities and Exchange Commission of Pakistan (“SECP”) formed Consultative Group on.

WORKSHOP ON ACCOUNTING OF MURABAHA UNDER IFAS – 1

International Financial Reporting Standards (IFRS)

ISLAMIC EXPORT RE-FINANCE SCHEME (IERS) By Mujeeb Beig.

54 th Annual June Conference Reporting entities are required to file a supplement to the annual statement titled “Management’s Discussion and Analysis”

Spring 2012 Practice Questions. Security Analysis (Spring 2012)Asif Ali Qureshi, CFA Question # 1 (Solution) 2.

CONTRACT DRAFTING DEFAULTS ASSIGNMENT GROUP - I. Agenda Our client - Overview Client’s goals Our objectives assumptions Our mode of action Practice Summary.

 Identify risks associated with obtaining business credit.

HKAS 28 Investments in Associates

Income Recognition and Asset Classification

ACCOUNTING FOR COMPANY STATEMENT OF FINANCIAL POSITION (LIABILITIES)

Barclays Capital Ensuring Capital Efficiency of Russian Securitisation Transactions October 2006.

Financial Accounting II Lecture 44.

We are dependable and trustworthy knowledge processing partner. Although we are a separate entity, we are an integrated part of your organization, like.

IAS 7: Cash Flow Statements. Agenda 1.Objective and Scope 2.Definitions 3.Direct and Indirect method 4.Operating activities, Investing activities, Financing.

ICAI - DELHI CA BHAVESH VORA.  Reserve Bank of India has published the draft guidelines for NBFCs which are extensive in Nature mainly focusing on following.

National Clearing Company of Pakistan Limited 1. Back Ground The Securities and Exchange Commission of Pakistan (“SECP”) formed Consultative Group on.

Discuss the factors on which credit is granted and the cost of credit. G42.

Chapter 17 SOURCES OF LONG-TERM FINANCE  Centre for Financial Management, Bangalore.

The Present Challenge The Microfinance industry has seen turbulent times, since the Andhra Pradesh crisis of Oct’10. The Malegam Committee had made its.

Muhammad Afaaq MC MBA(Finance) Finance (FINI-619) Internship report on National Bank of Pakistan.

Asset Liability Risk Management..  Risk Identification  Risk Measure  Risk Monitor  Risk Manage.

CDA COLLEGE BUS235: PRINCIPLES OF FINANCIAL ANALYSIS Lecture 10 Lecture 10 Lecturer: Kleanthis Zisimos.

BANKING REGULATION ACT,1949 & THE BANKING OMBUDSMAN SCHEME,1995.

1 FINANCIAL FORECASTING PROFORMA FINANCIAL STATEMENTS CASH BUDGETS OPERATING BUDGETS SALES FORECASTING EXTERNAL FINANCING REQUIREMENT SUSTAINABLE GROWTH.

Merrill Lynch Matt Western ACG2021 Section 002. Executive Summary Overall Merrill Lynch had a great year in They increased their revenues 11% from.

Credit Risk. Possibility of loss from the failure of loan or debt instrument repayments. Change in the repayment capacity of borrowers or debt instruments.

Banks Chapter 2 Risk Management and Financial Institutions 2e, Chapter 2, Copyright © John C. Hull 2009.

THE BANK'S BALANCE SHEET

Credit Risk Management. Credit Risk RBI definition of credit risk Possibility of losses associated with decline in the credit quality of borrowers or.

Right shares and bonus shares

1/5/ Introduction to CFS-MK II  Facilitate transparent and efficient financing for the market.  CFS-MK II will create an institutional bulk.

Revise Lecture 21. Loans and Advances Overdraft Loans and Advances Overdraft Overdraft also is a credit facility granted by bank. A customer who has.

Long Term Finance: Shares, Debentures and Term Loans.

Factors involved in consideration of credit proposals.

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Off-site supervision of the investment funds industry in Poland.

CA Sandeep D. Welling Overview of Bank Branch Audit & Other important Circulars Pune Branch March 12, 2016.

PRUDENTIAL REGULATIONS R 1 – R 13 Prudential Regulations Justification for Regulations and Supervision  E Enhancing efficiency  A Avoiding Financial.

Financial Accounting II Lecture 28. Lessee should recognise finance lease as asset and liabilities in their balance sheets at amounts equal at the inception.

COMPANIES ACT, 2013 SECTION 406 AND NIDHI RULES, 2014

Margin Trading System Based on Securities (Leveraged Markets and Pledging) Rules, 2011 and Concept Paper.

How 8of9 Can Get You In Shape

Margin Financing Recording System Through

Public Hearing | Slavka Eley

Company accounts – Redeemable Preference Shares

Financial Accounting II Lecture 30

sources of short term and long term financing

BORROWINGS Presented By: FCS Ashok Tyagi E-130, Greater Kailash 1,

KRISHNA PRASAD GWACHHA

Banks Chapter 2.

SOURCES OF FUND Prepared by: KP Gwachha (M.Phil.)

By CMA R GOPAL MFM M. Phil., FCMA Practicing Cost Accountant

COST OF CAPITAL 1.

The Impact of Government Policy & Regulation on Banking

A New Bank Lending Methodology for a Sustainable Economic Development

Presentation transcript:

RISK MANAGEMENT

 The total outstanding exposure to any single person shall not exceed 30% of the bank’s.  The total outstanding exposure by a bank / DFI to any group shall not exceed 50% of equity as disclosed in the latest audited financial statements.

Contingent liabilities of a bank / DFI shall not exceed at any point in time 10 times of its equity. Following shall not constitute contingent liabilities for the purpose of this regulation:

 While considering proposals for any exposure (including renewal, enhancement and Rescheduling / restructuring) exceeding such (presently at Rs 500,000), banks / DFIs should give due weight age to the credit report relating to the borrower and his group obtained from Credit Information Bureau (CIB) of State Bank of Pakistan.  Banks / DFIs shall not approve and / or provide any exposure (including renewal, enhancement and rescheduling / restructuring) until and unless the Loan is accompanied by basic fact sheet.  And the audited Financial statements.

 Banks / DFIs shall not provide unsecured / clean financing facility in any form of a sum exceeding Rs. 500,000/- to any one person.  Financing facilities granted without securities shall be deemed as ‘clean  Banks / DFIs shall ensure that the aggregate exposure against all their clean facilities shall not, at any point in time, exceed the amount of their equity. However limit may exceed in case of subordinated loans.

 The total exposure (fund-based and Or non-fund based) availed by any borrower from financial institutions does not exceed 10 times of borrower’s equity  Current assets to current liabilities ratio of the borrower shall not be lower than 1:1. However, in exceptional cases, banks may go for 0.65:1.

 All guarantees issued by the banks / DFIs shall be fully secured, except in the cases mentioned by the state bank. Where it’s at discretion of banks.  The requirement of security can also be waived by the banks. In case of Pak comp  The guarantees shall be for a specific amount and expiry date and shall contain claim lodgments date.

 Banks / DFIs shall observe the prudential guidelines  The banks shall follow the time criteria and also subjective evaluation of performing and non-performing credit portfolio on the basis of credit worthiness  Banks / DFIs shall classify their loans / advances portfolio and make provisions in accordance with the criteria.

 Banks / DFIs shall not pay any dividend on their shares unless and until:  They meet the minimum capital requirements as  All their classified assets have been fully and duly provided for  All the requirements laid down in Banking Companies Ordinance, 1962 relating to payment of dividend are fully complied

 Banks / DFIs are free to determine the margin requirements on facilities provided by them to their clients.  Banks / DFIs will continue to observe margin restrictions on shares