1. The banks productivity
Benchmarking studies comparing how banks in different countries go about their business, show that there is a wide spread in productivity. In 1991, added value per working hour was 93 USD in America versus 84 USD in Asia and only 52 USD in Europe. The number of people employed by the banking [...]
The price charged for a credit must cover the banks administrative and refinancing expenses. Most important, the margin must reflect the risk that is associated with each particular credit. The various factors influencing the pricing decisions are as follows:
This chapter will focus on loans as a means of financing a company. Financing instruments like leasing or factoring , in effect, pose similar risks as loans. It is mainly for tax-driven reasons that companies resort to leasing. Since tax laws are very different even within Western countries, this chapter will only give a brief [...]
International operations
1 Objectives may be different:
To accompany their customers when they invest abroad
To develop a standard banking activity
During the last ten years, economic evolutions, disintermediation, internationalization and technological evolutions have contributed to the development of market activities.
Since banks have to manage the financial assets of their clients, a tight control of the treatment will consist in steering the flows and updating the stocks.
Financial Function is to ensure the perenniality of the bank and keep it solvent; it has three main functions:
To ensure that accounting information can be trusted and is in accordance with regulations: it is the accounting function.
Human resources department
Life in a social unit like a bank is timed by the ins and outs of employees, internal mobility and promotion linked to career management, and also to a dialogue with social representatives.
To manage a bank, General Management depends on various functions:
To check the respect of internal and external regulations
To check the efficiency of procedures
Banks have the monopoly of the creation of means of payment necessary to the circulation of capital between economic agents. It can be cheques or credit-cards or even more sophisticated systems; their production and management are very complex and costly and need an adequate technological structure.
