The bank is a business entity which builds it funds from the community in the form of savings and channelling them to the community in the form of credit or loan to improve the standard of living of many people. Along the economic growth after the credit is being implemented, from time to time the bank will face the credit risk. There are many ways to minimize the credit risk. The one way is to perform client analysis of 5C (character, capacity, capital, condition of economy and collateral).
Given credit to a debtor must meet the requirements of the principle known as 5C, the five principles are:
a) Character
The character is data on the personality of the prospective customers as personal traits, habits, ways of life, circumstances and family background and also hobbies. Usefulness of the proficiency level assessment to determine the extent to which faith / willingness prospective borrowers to meet their obligation (willingness to pay) in accordance with the promise that has been set.
The extension of credit on the basis of trust, while underlying belief, namely the belief of the banks that borrowers have a moral, character and personal traits are positive and cooperative. Besides, it has a responsibility, both in private life as a human, as a life member of the community, as well as in business. Character is the domin...
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... be obliged with the contract stated that the capital provided by ASB will be based on Musharakah project and will be used for developing property as mentioned in contract and not for other purpose.
IV. Due to the company experience in running the project, KBL has responsibility to every aspect of operation until the project is finished. The bank (ASB) can appoint board of representatives to monitor and evaluate the progress of the project and also the financing.
V. The profit from this project will be shared by both parties which is 40% to the bank (ASB) and 60% to KBL as agreed term in the Musharakah contract.
VI. The losses from this project will be bear by both parties based on capital contribution from the beginning. But if any losses are caused by any negligence by one party, the negligent party should responsible to all the losses incurred in the project.
Applying for a credit card or personal loan has never been easier or faster. A myriad of financial products are available for all types of clients and all kinds of purposes. Terms and conditions are even becoming more and more flexible. How to decide whether a credit card is needed? How to handle a card? How to settle a loan? How to spend a loan? How to spend a car loan on a car, whose price is relatively reasonable compared to one’s pay? Is a loan the good sourcing tool to purchase a very expensive? These are all questions, which require a minimal to reasonable level of financial literacy.
The equivalent annual annuity for Project S is $2,380.95 and $1,952.92 for Project L. IF these projects are mutually exclusive, Project S should be accepted because its equivalent annual annuity is higher than the Project L’s.
Which of the six principles in the AICPA Code of Conduct is most related to Article 1.5 of the California Accountancy Act? Explain your conclusion.
As the company investment is based on the profit generated in last year’s so the budget of the project will be defined after annual report is published which define the annual revenue of this company.
of this problem for banks, for instance include lack of confidence in lending which causes
Businesses face lots of challenges today during their development and growth, and they should decide how much financial investment are they want to put into the development of certain projects.
Internal and External – Project Manager and an external entity are responsible for control of the risk.
The purpose of this assignment is to show an understanding of Project Management and all elements involved in the planning and execution of projects.
After coordination of the feasibility report, the project manager will be busy in the preparation of the project budgeting, which will be approved by the client. During this stage, project manager will work on the construction cost based on report from quantity survey of drawings and specifications. He will further keep updating the estimation and refine it for the approval as the construction proceed. Should the project budget fails to meet the real case, project manager has the obligation to advise the client and the archi...
... private construction projects. Every project in construction needs to take in consideration the existing property owners that surrounds the area where the construction project will be execute, every business, institutions, and residences owner that are located adjacent to the constructed facility need to be take in consideration while analyzing the stakeholders requirements as they become persons of interest in the project. (Bob Muir, 2009)
Many countries in the world have a concerning percentage of poverty in which both food and financial sources are disturbingly limited. Most of the world’s poor have suffered from the deficits of using financial services. Because of a bad credit history or a lack of proof of employment, financial services are most often not accessible for the low income client market. In the western and developing countries, people are being eliminated by the traditional financial system based on the deficiency of guarantees of unaffordable costs to process the loan application, and the lack of data related to their credit history. These factors sometimes lead to borrowing illegally, and neglecting the regulation of lending.
The physical side and the financial side have to work in a open exchange of information. The synergy of this project before it ever starts construction must come from the cooperation and adjustments made by both sides to create the best development. The physical side must take into account several things with the environmental sector. How can this site be used? What amenities or attractions can I draw from the existing environment? How can I improve the existing environment to create a more valuable development? The urban linkage must take into consideration how they are going to create their link to the surrounding environment and/or city.
Access to capital and credit at various stages in the business life cycle is identified as the major hurdle by the entrepreneurs. For many small firms and most start-ups, the personal funds of the business owners and entrepreneur and those of relatives and acquaintances constitute as the major source of capital. For many small businesses, especially during the early years of their operation, credit is simply not available. For many others, the limited available credit is not through bank loans. Due to this many of them rely on multiple credit card balances and home equity loans as major sources of credit for start-up firm. Because banks are bound by laws and regulations to prudent lending standards that require them a risk management assessment for each loan made. These regulations were made more vigor during the late 1980'' and early 1990 . Banks always found that lending to manufacturing firm with hard asset such as property, equipment, and inventory has always been easier than lending to today's expanding service sector firms. Because the service sector firms own few hard asses, therefor lending judgment have to be based in terms of character, markets, and cashflow, which make it difficult to the bank to meet the regulations for the approval of the loan. Additional, the banking industry, as well as the entire financial sector of the
The character of reputation gained from debt is a pivotal step to achieve the ideal life through the role debt plays in our economy.
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)