Despite the rapid growth of the capital market in the 1980s, a number of abuses existed such as insider trading, price rigging, inadequate, vague, and misleading prospectuses of companies, delays in share allocation and issuing refund orders, and manipulation of prices in stock exchanges. The capital market wads less liquid and lacked in transparency thereby providing … [Read more...] about 14 Major Defects of Indian Capital Market (Explained)
Investment & Earning
9 Essential Steps of Loan Documentation Procedure
Loan documentation is one of the vital areas in the credit portfolio of a bank. The purpose of taking documents is to fix the terms and conditions between the bankers and the borrowers, to identify the borrowers, to identify the securities, to count the period of limitation, to resort to legal remedies in case of need, and so on. Generally, the documents required to … [Read more...] about 9 Essential Steps of Loan Documentation Procedure
9 Key Principles of Sound Lending with Examples
The primary function of a bank is to receive deposits and lend loans, the majority of the funds are used for lending and this also considered as the major source of income for the bank. But lending is accompanied by risk, therefore a banker must be cautious in this aspect. A loan is granted for a specific time period. Generally, commercial banks provide short term … [Read more...] about 9 Key Principles of Sound Lending with Examples
Core Banking Solution (CBS) System: Framework, Services, Benefits
The banks were facing stiff competition. Markets were expanding. Costs had to be brought down. The available technology was far more advanced. If was at this juncture, the concept of core banking solution appeared on the horizon. In an increasingly competitive environment, banks took a reality check on their technology environment to ensure that their information … [Read more...] about Core Banking Solution (CBS) System: Framework, Services, Benefits
15 Benefits and Problems of Reverse Mortgage
When a person buys a house through s home loan, every EMI that he pays towards servicing the loan increases his equity in the house. Once he pays off the loan in full, his equity in the house is 100%. In a reverse mortgage, exactly the opposite happens. When he pledges his house for a reverse mortgage with a lending institution, his equity in his own house decreases with … [Read more...] about 15 Benefits and Problems of Reverse Mortgage
