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Lecture 1 Introduction to Banking Systems.

Published by Kristóf Gulyás Modified over 5 years ago

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Lecture 1 Introduction to Banking Systems

Banks and their products VOŠ – 3. ročník – 2. semestr.

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WHY STUDY FINANCIAL MARKETS AND INSTITUTIONS?

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Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Chapter 13 Money and Financial Markets.

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Chapter One.

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Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill /Irwin Chapter One Introduction.

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Stephen G. CECCHETTI Kermit L. SCHOENHOLTZ An Introduction to Money and the Financial System Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights.

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Lecture # 2 Financial Institutions

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Finance THE BANKING SYSTEM. Finance Lecture outline  The types and functions of banking  Central banking  Commercial and investment.

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Money and Banking Lecture 02.

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An Introduction to Money and the Financial System

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©2007, The McGraw-Hill Companies, All Rights Reserved Chapter One Introduction.

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Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill /Irwin Chapter One Introduction.

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University of Palestine International Business And Finance Management Accounting For Financial Firms Part (3) Ibrahim Sammour.

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Financial Markets and Institutions. Financial Markets Financial markets provide for financial intermediation-- financial savings (Surplus Units) to investment.

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Chapter One Introduction.

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Today’s Objectives Hand back and Review Tests Test Corrections in Groups (Assigned already) Begin Notes on Chapter 8 – Banking You will… – Understand your.

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Basic Terminologies of Financial Institutions By: Sajad Ahmad.

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Financial Institutions Accounting Dr. Salah Hammad Chapter 1 An Overview of the Changing Financial-Services Sector 2.

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Ch. 01: Money and Banking. Money Money, also referred to as the money supply, is defined as anything that is generally accepted in payment for goods or.

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Chapter 10SectionMain Menu Money What is money? What are the three uses of money? What are the six characteristics of money? What are the sources of money’s.

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Quality Management System In Construction Powerpoint Templates

Quality Management System In Construction Powerpoint Templates

This is a quality management system in construction powerpoint templates. This is a three stage process. The stages in this process are quality, cost, scope, schedule.

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United States Banking System - PowerPoint PPT Presentation

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United States Banking System

United states banking system an fldc presentation what is a banking system a network of commercial, savings, and specialized banks that provide financial services ... – powerpoint ppt presentation.

  • An FLDC Presentation
  • A network of commercial, savings, and specialized banks that provide financial services, including accepting deposits and providing loans and credit, money transmission, and investment facilities.
  • The United States Banking System is also known as the Federal Reserve System.
  • Before 1863, banks issued notes that functioned like our present day currency, except they were the duty of individual banks.
  • The money that was in circulation fluctuated with the business cycle, possibly exaggerating them.
  • Banks were subject to liquidity problems and the economy suffered several crashes which led to the crash of 1907.
  • It was then that the Federal Reserve Act was created in 1913.
  • Serve as a leader of last resort
  • Provide an elastic currency (money supply control).
  • Provide for a sounder banking system
  • Improving how transactions were processed (check clearing and promoting payments system technology).
  • Conducting the Nations monetary policy by influencing monetary and conditions in the economy, in pursuit of employment, stable prices, and moderate long-term interest rates.
  • Supervising and regulating banking institutions to ensure the safety of the banking system and to protect credit rights of consumers.
  • Providing financial services to depository institutions, the U.S government and other foreign institutions.
  • They also make loans to commercial banks, and are authorized to issue Federal Reserve Notes.
  • Regulation Q They establish the maximum rate that depository institutions could pay on deposit accounts.
  • Securities Credit Regulation Establishes borrowing limit for buyers on securities margins.
  • Supervision Examination of State Member Banks by Feds.
  • Regulation of Bank and Financial holding companies.
  • Regulation of payment system.
  • Control of International Banking actions.
  • Consumer Credit Regulation
  • Being a Fiscal Agent for the U.S Treasury
  • Seven Members make up the Board of Governors.
  • 12 Regional Federal Reserve Banks.
  • Thousands of Member Commercial Banks
  • Federal Open Market Committee( FOTC)
  • The FOTC consists of the Board of Governors and the 5 Presidents from the district banks.
  • The Assets of the Federal Reserve System include
  • U.S Government and Agency Securities (Primary).
  • Net loan of reserves of extended.
  • Treasury coin.
  • Loans to member banks.
  • Gold Certificates and SDRs.
  • Bank deposits (reserves) in the Fed are needed to clear checks and to satisfy reserve requirements.
  • Actual reserves (AR) are balances needed to meet check clearing and legal reserve requirements including
  • -vault cash.
  • -noninterest bearing bank deposits in Federal Reserve banks.
  • Excess Reserves equals actual minus the required reserves.
  • Excess Reserves may loaned to customers or sold to other banks (federal funds market) by an individual bank.
  • If the level of the banking system's Federal Reserve borrowed reserves (BR) (Fed loan credited to reserve accounts) exceeds the level of excess reserves in a period, the banking system is in a net borrowed reserve position, is less likely to promote lending activities, and interest rates are most likely to be increasing.
  • If the level of level of excess reserves exceeds Fed borrowing, the banking system is in a net-free reserve position, credit is easier and interest rates are generally lower.
  • Many analysts prefer to examine banks net-free reserves (Excess Reserves - Borrowed Reserves).
  • 2. Open market operations affect the level of member bank reserves and the monetary base.
  • Buying government securities from the private sector, the Fed eventually credits member bank deposits, thus increasing the level of bank reserves and the banks' ability to make loans and expand the money supply.
  • Selling securities (could be any asset) to private security dealers or banks, the Fed is paid with a bank check which reduces the level of member bank actual reserves.
  • The Federal Reserve usually expands or contracts its liabilities by engaging in Open Market Operations.
  • When they buy securities, they write a check on themselves.
  • The Federal Reserve increases the monetary base via the banks reserve accounts whenever it acquires more assets
  • Discount Rate Policy -- The rate of interest depository institutions pay for borrowing from the Fed.
  • Raising the discount rate increases the cost of borrowing for needed reserve balances.
  • Lowering the discount rate lowers the cost of bank liquidity and encourages lending and money supply expansion
  • Rarely used as a tool of monetary policy now.
  • Changes in the assets and liabilities of the Federal Reserve System largely determine the nations Monetary Base
  • The Monetary Base equals currency in circulation plus financial institution deposits at the Federal Reserve.
  • The Federal Reserve increases the monetary base via the banks reserve account whenever it acquires more assets. It decreases the monetary base when it sells assets.
  • Expansionary monetary policy
  • Open market operations -- purchase securities -- increase bank excess reserves and the monetary base.
  • Reserve requirements -- reduce reserve requirements -- increase excess reserves and increase the deposit expansion multiplier.
  • Discount rate -- reduce the rate -- reduce the cost of borrowing reserves.
  • Expands the money supply reduces interest rates.
  • Restrictive monetary policy
  • Open market operations -- sell securities, reduce bank reserves and the monetary base.
  • Reserve requirements -- increase reserve requirements, reduces excess reserves and the deposit expansion multiplier.
  • Discount rate -- increase the discount rate and the cost of borrowing reserve deficiencies.
  • Reduce the money supply or its growth rate increase interest rates.
  • Moral Suasion - Chairman of the Federal Reserve System makes a speech or testifies before Congress
  • Regulation of Banks
  • International Activities arising from acting as the Agent of the United States Government in International Finance
  • The Federal Reserve has ultimate power in influencing interest rates.
  • During a period of time when interest rates are low, capital is easy to acquire and this spurs development because the more cash a consumer has, the more items they buy.
  • In contrast, if interest rates are too high, the result can be a recession and in extreme cases even deflation.
  • There are two ways that the Federal Reserve can influence the interest rates.
  • 1- The Federal Reserve can either increase or decrease the discount rate.
  • 2- By indirectly influencing direction of the Federal Funds Rate.

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Banking Infographics

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Core systems strategy for banks

presentation on banking system

Serves financial institutions, helping them get their legacy technologies ready for the digital age

presentation on banking system

Specializes in getting legacy systems “digital ready”

May 4, 2020 Core transaction processing engines for banks—or “core banking systems”—have been making news in the world of banking technology of late. Some of the major global banks have announced partnerships with new cloud-based core banking systems providers. There have been a few instances in the US of these partnerships as well. Many small and midcap banks in the US and Latin America are known to be shopping around for new cores. This topic seems to have suddenly gained visibility in the US and the rest of the world

In this article we look at the forces that are raising the core banking profile, and at the alternatives available to banking leaders as they consider their technology roadmap.

Banks all over the world spend millions of dollars each on maintaining their core banking systems, which usually interface with tens or hundreds of systems. Core banking systems handle a high volume of transactions and are expected to function without interruption—prolonged outages can invite regulatory scrutiny, customer opprobrium, and significant loss of revenue.

Legacy core banking systems have traditionally succeeded in terms of reliability. Failures are rare, with some banks going without an outage for months, if not years. However, with the advent of digital banking, cloud, and APIs, banks have seen a significant shift in the way banking products and partnerships are constructed. Banks are now expected to process transactions in real time, be able to stitch together partnerships with fintech companies in a matter of weeks, release new features frequently, be able to scale (up and down) their infrastructure needs at will, and even execute on M&A quickly. Older core banking systems— usually designed for reliability rather than open architecture—may need to respond to this new requirement, which, to their credit, many are doing with alacrity.

In addition to the existential issues listed above, banks endure some tactical day-to-day pain points with legacy core banking systems. These problems vary from bank to bank, but include a dwindling engineering talent pool, excessive undocumented customization leading to a complex code base that can be difficult and risky to change, and various vendor-support issues.

In response to these issues, a new breed of core banking systems has emerged in the last few years. They are, or will be, cloud-ready and open-banking compliant, and, in some cases, have very advanced architectures that make frequent feature releases easier. Some of these systems are also pushing the envelope in customer experience and offering innovative and reasonable pricing schemes for core banking replacements. More importantly, they claim not to compromise on the core tenet of faultless transaction processing.

Most banking leaders are aware of the significance of their core banking system, but many do not have explicit strategies tied to the core. And as banking continues to be disrupted, the traditional core architecture may not be able to deliver for incumbent banks; and given the long lead times required for transitioning to a new core, they need to set their strategies in motion now.

The best place to begin this effort is by answering five questions:

Does our legacy core banking system require intervention?

What interventions are possible to stave off a full transformation, if a core banking replacement is needed, what are the options.

  • What are the core elements of a good business case for such a transformation ?

What does a bank do next?

Another set of simple questions can give decision-makers a sense of the urgency of their core system problem (Exhibit 1). Affirmative answers to more than two of the questions indicate a potential problem and merit further intervention.

presentation on banking system

It is important to carry out this exercise dispassionately and in a business-risk focused manner. This does not mean taking a myopic view of the problem. If a bank believes that there are no problems now, but there could be in the future, then preparing for an intervention now may make sense. It is common for core banking projects to take two to three years to complete, so the assessment should be made considering a medium-term horizon.

Contrary to popular opinion, a “rip-and-replace” is not the only possible intervention—and often it is often actually not the right choice. Depending on the urgency, several responses are possible, ranging from small tactical changes to large-scale re-architecture. Measures like this can extend the life of a core banking system by as long as five to ten years, which is especially valuable for banks that lack the capital to install a new core banking system, have other near-term priorities, or want to wait until more advanced offerings come to market.

Many banks have used these measures (popularly known as “hollowing out”) to extend the service life of their core banking system by many years, with a lot of success, and more importantly without slowing down their “digital” journeys.

Exhibit 2 shows a (non-exhaustive) range of options available for extending the effective life of a core banking system. It is important to remember that these are at best medium-term measures.

presentation on banking system

There are two main options (with a few variations) for banks that conclude that they need to replace their core banking system: a traditional enterprise core banking system (self-hosted or as a utility) and a next-generation cloud-based core banking system .

Most current implementations are still of the traditional variety. But we are seeing an increase in banks of all sizes putting off traditional core implementations with the aim of experimenting with next-gen systems.

There is some evidence to suggest that banks will try and shift en masse to a cloud-based microservice architecture in the next few years. The core method of communication between machines will be APIs. Armed with a micro-service based architecture, the new core banking applications will become core enablers of the shift to this architecture. Traditional core banking providers have become aware of the need and potential inherent in a cloud-based microservice architecture; banking leaders should keep a close watch on developments here. We also expect to see some M&A activity between traditional and next-gen core banking system providers.

For now, there are four primary issues that prevent banks from replacing their core applications with next-generation core banking applications.

  • The “at-scale” problem: Banks are very risk averse when it comes to core replacement, and rightfully so. Given how embedded these core applications are, banks tend to prefer a tried and tested system to replace them. It is likely that once the first bank successfully implements a large, “at-scale” next-gen core system, the floodgates of demand will open. We increasingly see banks willing to experiment with these players and put their own engineering resources to work to accelerate this trend.
  • The “functionality” problem: Traditional core banking systems come with a range of product and process functionality and are made for heavy customization to meet the individual needs of the bank. Next-generation core banking systems are designed to support a slightly more limited set of products and processes, but with a versatile toolkit (a software development kit, or a repository of APIs), and fulfill additional needs using an ecosystem of fintech or traditional partners. This is the right architectural answer, as it ensures loose coupling and fewer customization problems down the line, but will take some getting used to for traditional banks. We see this as an opportunity for banks to start building their ecosystem muscle
  • The “integration” problem: This problem is proving to be a little more intractable. Banks expect new core banking systems to integrate with their existing stack of channels, customer-relationship-management systems, data architecture, risk systems, and middleware—all of which are very difficult to replace and represent hundreds of millions of dollars of investment over the years, meaning they cannot be written off without causing significant disruption and losses. The problem is that this integration entails high risk and high cost. The incumbent core banking system has usually undergone significant customization and development, reflecting changes in business logic over decades. Untangling the integration from the old system and re-integrating the new core banking system is an extremely difficult exercise—the banking equivalent of a high-risk brain surgery. For a medium-size bank, the cost of this integration could exceed $50 million depending upon its complexity; for larger banks, $300 million to $400 million is not unheard of (based on estimates for traditional implementations). Most banks understandably have very little appetite for this sort of expense. Banks expect to avoid this problem by installing next-generation core banking systems separate from the current stack, migrating customers gradually into the new stack over time and executing a “reverse-takeover” of the old stack. We believe there is a significant opportunity for banks to use this as a forcing mechanism to decommission their redundant systems, simplify their product set, and improve their technology skills, specifically in the areas of cloud, API based ecosystems, and automation in general.
  • The public cloud problem: There are a few other issues related to core banking systems on the public cloud. Most banks are just finding their feet in this arena and starting to come to grips with the security implications of the cloud. It will take some time for banks to start storing public data on the cloud without any fear. We see a lot of positive momentum in this area, with “neo banks” leading the way. We also see very sophisticated; and constructive engagement by regulators as far as cloud hosting is concerned. We anticipate that as banks start honing their cloud operating models, this will soon become a non-issue.

What are the elements of a good core banking business case?

Whatever option is chosen, an initiative like core banking transformation requires a solid business case. This is not a trivial exercise: a core banking transformation is akin to replacing the foundation of a building, and is therefore not always amenable to a straightforward revenue-based business case. Traditional core banking replacements have tried to make their case by adding in cost-saving elements through process automation and clean-ups, but it has proven very difficult to pay for a core banking transformation purely through efficiencies.

Next-generation core banking systems may present some additional advantages in making a business case because of their architecture and business model. Some examples:

  • Faster time to market for new products if they are truly API driven
  • Faster set up of ecosystems
  • Reduced cost of change if testing is truly automated and if core banking vendors follow a “train the trainer” model and not a “consulting plus model”
  • Reduced upfront costs if the core banking vendor charges fees based on revenue-like events such as customer uptake or profits

The next steps for any bank depend, naturally, upon the context. For some banks, the core system is an urgent priority; for others less so. Some banks have an appetite for experimentation, while others prefer to be followers and wait for other incumbents to pioneer a new core banking system. In general, we expect that core banking implementations will become cheaper and their architecture will become more and more open. Irrespective of appetite for change, there are several no-regret moves banks can make now:

  • Make a list of tactical modernization needs for the current core banking system, but invest only if there is a burning need. Minimize any strategic non-reusable investment on the current core banking system, unless it is expected to be the bank’s core system for the next decade.
  • Maintain general preparedness for a migration. This includes maintaining a clean Chart of Accounts and a clean set of customer accounts. Ensure that duplicate, unpopular, or redundant products are minimized, and dormant accounts or inactive accounts are reduced where regulation allows it.
  • If you can experiment with a new application, do so. If an affordable opportunity arises to set up a new stack using a next-gen core banking system, a bank should grab the chance to get learn about managing a core system in the cloud.
  • Build up core talent. Start building up a core team made up of cloud specialists, data engineers, and core banking subject matter experts in product, finance, and operations. This core team does not need to be more than six to seven people.

Even if the core banking system is not an immediate issue for a bank, it is very likely to reach the C-suite agenda at some point. Next-gen cloud-based core banking systems are gaining more and more traction, and they will rapidly try to become natural alternatives to traditional core banking systems. Banks should start laying the no-regret groundwork and do all they can now to prepare for a migration to a newer system in the medium-term without neglecting tactical modernization of the existing core.

banking system in india

Banking System in India

Oct 11, 2014

3.3k likes | 9.79k Views

Banking System in India. Indigenous bankers. Individual bankers like Shroffs, Seths, Sahukars, Mahajans, etc. combine trading and other business with money lending. Vary in size from petty lenders to substantial shroffs

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  • sector banks
  • branch expansion
  • narasimham committee
  • 3 years npa
  • nationalised banks 1969 1980

bertha

Presentation Transcript

Banking Systemin India

Indigenous bankers • Individual bankers like Shroffs, Seths, Sahukars, Mahajans, etc. combine trading and other business with money lending. • Vary in size from petty lenders to substantial shroffs • Act as money changers and finance internal trade through hundis (internal bills of exchange) • Indigenous banking is usually family owned business employing own working capital • At one point it was estimated that IBs met about 90% of the financial requirements of rural India

RBI and indigenous bankers • IB should have their accounts audited by certified chartered accountants • Submit their accounts to RBI periodically • As against these obligations the RBI promised to provide them with privileges offered to commercial banks including • Being entitled to borrow from and rediscount bills with RBI • The IBs declined to accept the restrictions as well as compensation from the RBI • Therefore, the IBs remain out of RBI’s purview

BANKING SYSTEM IN INDIA

SCHEDULED BANK: • which is registered in Second Schedule of the RBI • Must be carrying on a business of banking in India • Must have paid-up capital and reserve of an aggregate value of not less than Rs.5 lakh(100cr.-for New) • It must satisfy RBI- not in a manner detrimental to the interest of depositor • NON SCHEDULED BANK: • Which is not included in Second Schedule of RBI • Not entitled to facility of borrowing & rediscounting

Co-operative Banks

SCHEDULED COMMERCIAL BANKS • PUBLIC SECTOR BANKS • SBI & Associates (SBI Act, 1955) • Nationalised Banks (1969-1980) • PRIVATE SECTOR BANKS: • Post Reform Period 24 banks in pvt. Sector Banks • Initial minimum paid up capital from Rs.100 to Rs.200 crore.

REGIONAL RURAL BANKS • Bank with local knowledge and familiarity • Organisation ability to mobilize deposits, access to money market and modernized outlook • ORGANISATION- Separate body corporate with perpetual succession and common seal- may establish its branches • CAPITAL- Authorised-1 cr.- paid up-50laks- -50% subscribed by Central Govt.-15%State Govt. – 35% by Sponsor Bank

FOREIGN BANKS: Registered outside India- to operate in India the minimum capital requirement of US $25 million, spread over 3 branches, that is, US$ 10million for the 1st and 2nd bank respectively and US$5million for the 3rd branch • The no. of licences fixed is 12 per year both for new and expansion by existing banks

Development Oriented Banking • Historically, close association between banks and some traditional industries- cotton textiles in the west, jute textiles in the east • Banking has not been mere acceptance of deposits and lending money; included development banking • Lead Bank Scheme- opening bank offices in all important localities • Providing credit for development of the district • Mobilising savings in the district. ‘Service area approach’

Progress of banking in India (1) • Nationalisation of banks in 1969: 14 banks were nationalised • Branch expansion: Increased from 8260 in 1969 to 71177 in 2006 • Population served per branch has come down from 64000 to 16000 • A rural branch office serves 15 to 25 villages within a radius of 16 kms • However, at present only 32,180 villages out of 5 lakh have been covered

Progress of banking in India (2) • Deposit mobilisation: • 1951-1971 (20 years)- 700% or 7 times • 1971-1991 (20 years)- 3260% or 32.6 times • 1991- 2006 (11 years)- 1100% or 11 times • Expansion of bank credit: Growing at 20-30% p.a. thanks to rapid growth in industrial and agricultural output • Development oriented banking: priority sector lending

Progress of banking in India (3) • Diversification in banking: Banking has moved from deposit and lending to • Merchant banking and underwriting • Mutual funds • Retail banking • ATMs • Internet banking • Venture capital funds • Factoring

Profitability of Banks(1) • Reforms have shifted the focus of banks from being development oriented to being commercially viable • Prior to reforms banks were not profitable and in fact made losses for the following reasons: • Declining interest income • Increasing cost of operations

Profitability of banks (2) • Declining interest income was for the following reasons: • High proportion of deposits impounded for CRR and SLR, earning relatively low interest rates • System of directed lending • Political interference- leading to huge NPAs • Rising costs of operations for banks was because of several reasons: economic and political

Profitability of Banks (3) • As per the Narasimham Committee (1991) the reasons for rising costs of banks were: • Uneconomic branch expansion • Heavy recruitment of employees • Growing indiscipline and inefficiency of staff due to trade union activities • Low productivity • Declining interest income and rising cost of operations of banks led to low profitability in the 90s

Bank profitability: Suggestions • Some suggestions made by Narasimham Committee are: • Set up an Asset Reconstruction Fund to take over doubtful debts • SLR to be reduced to 25% of total deposits • CRR to be reduced to 3 to 5% of total deposits • Banks to get more freedom to set minimum lending rates • Share of priority sector credit be reduced to 10% from 40%

Suggestions (cont’d) • All concessional rates of interest should be removed • Branch expansion should be carried out strictly on commercial principles • Diversification of banking activities • Almost all suggestions of the Narasimham Committee have been accepted and implemented in a phased manner since the onset of Reforms

Income Recognition • Incomes from NPAs not recognised on accruals basis but on receipt basis • If interest debited not recovered within 180 days(2 quarters) then the same shall not be recognised as income

Non Performing Asset(NPA)For Cash Credit & OD • Where the outstanding balance remains continuously in excess of the sanctioned limit/Drawing power OR • Where the outstanding balance is less than the sanctioned limit/Drawing power, but there is no credits continuously for 6 months OR • Where the credits are not enough to cover the interest debited during the 6 months as on the date of the Balance Sheet

Non Performing Asset(NPA)(For Loans & Advances) • Standard Assets: are those which are not NPA as they are regular and performing and there are no adverse features • Sub-Standard Assets: are those which are NPAs for a period Not exceeding Two Years • Doubtful Assets: are those non-performing assets which remain as such for a period, Exceeding 2 years • Loss Assets: are those NPAs where 100% loss has been identified but not yet written off in the books of accounts

Name of Asset Standard Asset Substandard Asset Doubtful Assets Doubtful upto 1 year (NPA more than 2 years but upto 3years) Doubtful for more than 1 year but upto 3 years (NPA more than 3yrs but upto 5 years) Doubtful for more than 3 years(NPA for more than 5 yrs) Loss Assets Provisioning Requirement No provision is required General prov.10% of outstanding 100% to the extent of deficit (deficit=advance –security) Plus 20% of Tangible Security 30% of Tangible Security 50% of Tangible Security 100% of the outstanding Provisioning for Loans & Advances

Capital Adequacy Norms (9%) • Tier I Capital: • Paidup Capital • Statutary and other disclosed free reserves including share premium • General Reserve less • Investment in subsidiaries • Intangible assets • Brought forward and current losses

Capital Adequacy Norms Tier II capital consists: • Undisclosed reserves & cumulative perpetual preference shares • Revaluation Reserves at a discount of 25% • Surplus provisions/loss reserves subject to a maximum of 1.25% weighted Risk Assets • Hybrid Debt Capital instrument • Subordinated Debt

Capital Adequacy Formula Capital Adequacy=Capital Funds * 100 Weighted Risk Assets

Other Important Terms • On Balance Sheet Items: Those Items which appear on the Balance Sheet of a Bank & for which RBI has given percentage weights to various types of assets • Off Balance Sheet Items: Those items which do not appear on the face of the Balance Sheet like Guarantees, Letter of Credit etc. • Dividend Payout Ratio: Banks should have a Capital Adequacy Ratio of atleast 9 for the a/c yr. for which it proposes to declare dividend subject to a ceiling on DP ratio 40%

NPA Management • The Narasimham Committee recommendations were made, among other things, to reduce the Non-Performing Assets (NPAs) of banks • To tackle this the government enacted the Securitization and Reconstruction of Financial Assets and Enforcement of Security Act (SARFAESI) Act, 2002 • Enabled banks to realise their dues without intervention of courts

SARFAESI Act • Enables setting up of Asset Management Companies to acquire NPAs of any bank or FI (SASF, ARCIL are examples) • NPAs are acquired by issuing debentures, bonds or any other security • As a second creditor can serve notice to the defaulting borrower to discharge his/her liabilities in 60 days • Failing which the company can take possession of assets, takeover the management of assets and appoint any person to manage the secured assets • Borrowers have the right to appeal to the Debts Tribunal after depositing 75% of the amount claimed by the second creditor

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301 views • 11 slides

Banking System in India

Banking System in India. BANKING SYSTEM IN INDIA. Commercial Banks by Ownership. BANKS BY INCLUSION IN SECOND SCHEDULE OF RBI ACT, 1934 AS ON MARCH 31, 2003. Classification Continued. Public Sector Banks Nationalized Banks (19) State Bank of India and its assosciates Private Sector Banks

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RURAL BANKING IN INDIA

RURAL BANKING IN INDIA

RURAL BANKING IN INDIA. Presented by :. What’s Making NEWS ???. Rural banking & microfinance need to be addressed for sustainable growth : RBI Deputy Governor.

2.09k views • 36 slides

JAK BANKING SYSTEM

JAK BANKING SYSTEM

JAK BANKING SYSTEM. THE PURPOSES OF JAK:. TO SUPPORT THE MEMBERS WITH A BANKING SYSTEM AT COST PRICE. ... AND TO SPREAD INFORMATION ON INTEREST-FREE ECONOMY. Deposits and Loans (1991 -2009). Deposits Loans. FAIR!. SAVER. BORROWER. UNFAIR!. BORROWERS. SAVER.

404 views • 25 slides

Rethinking Branchless Banking in India

Rethinking Branchless Banking in India

Rethinking Branchless Banking in India. Doug Johnson Centre for Microfinance. Introduction to Branchless Banking. branchless banking: outsourcing the processing of transactions by banks to third party agents. Branchless Banking’s Risks:

416 views • 13 slides

Banking System, Canadian Banking, Canadian Banking, Mortgage System, Mortgage Loans, Banking Mortgages, Banking System

Banking System, Canadian Banking, Canadian Banking, Mortgage System, Mortgage Loans, Banking Mortgages, Banking System

Websoftex Software Solutions Private Limited-a Bangalore based Company-an authorized Software service provider engaged in Microfinance-Banking-Co-Operative-NBFC-Pigmy-Mortgage-RD FD Software-Loan-Accounting-Custom-Cooperative Agent-Mortgage-Accounting-E Commerce-Billing Software-Core Banking-Micro Finance-CRM-Loan Software-Development in Bangalore-with maximum level protection. We take pride in rendering good and protective services to small- medium Microfinance Institutions and other sector for more than 5 years. http://microfinanceSoftware.net

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stem cell banking in india

stem cell banking in india

With over 50 centers, Cordlife India is one of the largest umbilical cord stem cell banking companies. Discover more about cord blood banking now!

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Investment Banking in India

Investment Banking in India

www.righthorizons.com/our-services/investment-banking-services - Investment Banking in India. Investment banking is the division of a bank or financial institution that serves governments, corporations, and institutions by providing underwriting.

215 views • 7 slides

Social Banking in India

Social Banking in India

Banks provide financial aid to economically weaker sections of the society so as to enable them to participate and benefit from the developmental initiatives of the government. This process is called Social Banking.

356 views • 8 slides

Investment Banking In India

Investment Banking In India

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U.S. Banking System

U.S. Banking System

MTRA 16 th Annual Conference November 14, 2006 The Banking Environment for Money Services Businesses Lisa Arquette FDIC Associate Director Anti-Money Laundering & Financial Crimes Section. U.S. Banking System. US Banking System is Large, Diverse, and Complex

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BANKING SYSTEM

BANKING SYSTEM

BANKING SYSTEM. Software Requirements Document. CEN5011 - Advanced Software Engineering Fall Term - 2004. TEAM MEMBERS. Jing Zhang Wei Peng Erliang Zeng Ramakrishna Varadarajan Xiaosi Zhou Fernando Farf á n. Bank with services in South Florida. +200K Clients Next 5 years:

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Kiosk Banking india

Kiosk Banking india

oxigen is huge opportunities to work in kiosk sector as a CSP, online money transfer, bank kiosk, bill payments. Get CSP Customer Service Point Registration with us Online at oxigen.org.in. Visit here: https://oxigen.org.in/

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Press Release

Amd to significantly expand data center ai systems capabilities with acquisition of hyperscale solutions provider zt systems.

  — Strategic acquisition to provide AMD with industry-leading systems expertise to accelerate deployment of optimized rack-scale solutions addressing $400 billion data center AI accelerator opportunity in 2027 —

  • ZT Systems, a leading provider of AI and general purpose compute infrastructure for the world’s largest hyperscale providers, brings extensive AI systems expertise that complements AMD silicon and software capabilities 
  • Addition of world-class design and customer enablement teams to accelerate deployment of AMD AI rack scale systems with cloud and enterprise customers 
  • AMD to seek strategic partner to acquire ZT Systems’ industry-leading manufacturing business 
  • Transaction expected to be accretive on a non-GAAP basis by the end of 2025

SANTA CLARA, Calif., Aug. 19, 2024 (GLOBE NEWSWIRE) -- AMD (NASDAQ: AMD) today announced the signing of a definitive agreement to acquire ZT Systems , a leading provider of AI infrastructure for the world’s largest hyperscale computing companies. The strategic transaction marks the next major step in AMD’s AI strategy to deliver leadership AI training and inferencing solutions based on innovating across silicon, software and systems. ZT Systems’ extensive experience designing and optimizing cloud computing solutions will also help cloud and enterprise customers significantly accelerate the deployment of AMD-powered AI infrastructure at scale.

AMD has agreed to acquire ZT Systems in a cash and stock transaction valued at $4.9 billion, inclusive of a contingent payment of up to $400 million based on certain post-closing milestones. AMD expects the transaction to be accretive on a non-GAAP basis by the end of 2025.

“Our acquisition of ZT Systems is the next major step in our long-term AI strategy to deliver leadership training and inferencing solutions that can be rapidly deployed at scale across cloud and enterprise customers,” said AMD Chair and CEO Dr. Lisa Su . “ZT adds world-class systems design and rack-scale solutions expertise that will significantly strengthen our data center AI systems and customer enablement capabilities. This acquisition also builds on the investments we have made to accelerate our AI hardware and software roadmaps. Combining our high-performance Instinct AI accelerator, EPYC CPU, and networking product portfolios with ZT Systems’ industry-leading data center systems expertise will enable AMD to deliver end-to-end data center AI infrastructure at scale with our ecosystem of OEM and ODM partners.”

Headquartered in Secaucus, New Jersey, ZT Systems has more than 15 years of experience designing and deploying data center AI compute and storage infrastructure at scale for the largest global cloud companies. ZT Systems’ design, integration, manufacturing and deployment capabilities have made them one of the leading providers of AI training and inference infrastructure.

“We are excited to join AMD and together play an even larger role designing the AI infrastructure that is defining the future of computing,” said Frank Zhang, CEO of ZT Systems. “For almost 30 years we have evolved our business to become a leading provider of critical computing and storage infrastructure for the world’s largest cloud companies. AMD shares our vision for the important role our technology and our people play designing and building the computing infrastructure powering the largest data centers in the world.”

Following transaction close, ZT Systems will join the AMD Data Center Solutions Business Group. ZT CEO Frank Zhang will lead the manufacturing business and ZT President Doug Huang will lead the design and customer enablement teams, both reporting to AMD Executive Vice President and General Manager Forrest Norrod . AMD will seek a strategic partner to acquire ZT Systems’ industry-leading U.S.-based data center infrastructure manufacturing business.

The acquisition of ZT Systems marks the latest in a series of investments by AMD to significantly strengthen the company’s AI capabilities. In the last 12 months, in addition to increasing organic R&D activities, AMD has invested more than $1 billion to expand the AMD AI ecosystem and strengthen the company’s AI software capabilities.

Additional Transaction Details   The transaction has been unanimously approved by the AMD Board of Directors. The acquisition is currently expected to close in the first half of 2025, subject to certain regulatory approvals and other customary closing conditions.

Conference Call and Webcast Details  AMD will hold a conference call for the financial community at 8:30 am EDT today to discuss the transaction. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at  ir.amd.com . The webcast will be available for 12 months after the conference call.

Advisors  Citi is acting as exclusive financial advisor to AMD and Latham & Watkins LLP is serving as its legal advisor. Goldman Sachs & Co. LLC is acting as exclusive financial advisor to ZT Systems and Paul, Weiss, LLP is serving as its legal advisor.

About AMD   For more than 50 years AMD has driven innovation in high-performance computing, graphics and visualization technologies. AMD employees are focused on building leadership high-performance and adaptive products that push the boundaries of what is possible. Billions of people, leading Fortune 500 businesses and cutting-edge scientific research institutions around the world rely on AMD technology daily to improve how they live, work and play. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website , blog , LinkedIn and X pages.

About ZT Systems   ZT Systems is a leading supplier of hyperscale server solutions for cloud computing and artificial intelligence. With over 29 years of experience, ZT Systems is headquartered in Secaucus, NJ. Global manufacturing spanning the US, EMEA and APAC helps ZT Systems deliver on our mission of empowering our digital world with the most advanced technology infrastructure for cloud and AI. Learn more at   ztsystems.com .

Cautionary Statement   The statements in this press release include forward-looking statements concerning Advanced Micro Devices, Inc. (AMD), ZT Systems, the proposed transaction described herein and other matters. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. Forward-looking statements speak only as of the date they are made or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as there can be no assurance that the events or circumstances reflected in these statements will be achieved or will occur. Forward-looking statements can often, but not always, be identified by the use of forward-looking terminology including “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “pro forma,” “estimates,” “anticipates,” “designed,” or the negative of these words and phrases, other variations of these words and phrases or comparable terminology. The forward-looking statements in this press release relate to, among other things, data center AI accelerator opportunity, obtaining applicable regulatory approvals, satisfying other closing conditions to the transaction, the expected timing of the transaction, and the integration of the businesses, sale of ZT Systems’ manufacturing business, and the expected benefits, accretion, synergies and growth to result therefrom. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. These risks include, among other things: failure to obtain applicable regulatory approvals in a timely manner or otherwise; failure to satisfy other closing conditions to the transaction or to complete the transaction on anticipated terms and timing; negative effects of the announcement of the transaction; risks that the businesses will not be integrated successfully, the ability of AMD to sell ZT Systems’ manufacturing business on a timely basis or at all, or that AMD will not realize expected benefits, cost savings, accretion, synergies and/or growth, or that such benefits may take longer to realize than expected; the risk that disruptions from the transaction will harm business plans and operations; risks relating to unanticipated costs of integration and sale of ZT Systems’ manufacturing business; significant transaction, integration and separation costs, or difficulties and/or unknown or inestimable liabilities in connection with the transaction or sale of ZT Systems’ manufacturing business; restrictions during the pendency of the transaction that may impact the ability to pursue certain business opportunities or strategic transactions; the potential impact of the announcement or consummation of the transaction or sale of ZT’s System’s manufacturing business on AMD’s, ZT Systems’ or the combined company’s relationships with suppliers, customers, employees and regulators; and demand for AMD’s, ZT Systems’, or the combined company’s products.  For a discussion of factors that could cause actual results to differ materially from those contemplated by forward-looking statements, see the section captioned “Risk Factors” in AMD’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward looking statements. AMD does not assume, and hereby disclaims, any obligation to update forward-looking statements, except as may be required by law.

© 2024 Advanced Micro Devices, Inc. All rights reserved. AMD, the AMD Arrow logo, AMD Instinct, AMD EPYC and combinations thereof are trademarks of Advanced Micro Devices, Inc.

Media Contact:   Drew Prairie   AMD Communications  512-602-4425  [email protected]  

Investor Contact:   Mitch Haws   AMD Investor Relations  408-749-3124  [email protected]

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Released August 19, 2024

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Powerpoint Templates and Google slides for Bank Management

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