Choosing Comparable Companies for Banks and Diversified Financial Institutions This is our second post on analyzing bank stocks. Keep in mind that when looking at banking, the most pure play bank is a bank that takes deposits and lends, charges service fees and invests excess equity in relatively safe fixed income
Commercial Banking
Introduction to Analyzing Bank Stocks
The following article should not be taken as investment advice and is for information purposes only For most people who invest in stocks, whether through building a blue chip portfolio themselves or through mutual funds/ETFs, they are usually invested in bank stocks. The big banks are an important part of every
Liquidity Ratios and Asset Based Lending
Illiquidity and Insolvency for Debtors Any entity that has debt can become illiquid or insolvent. Illiquid means that the debtor cannot service the debt at the time with liquid assets (which in accounting class generally means cash, accounts receivable and inventory - in decreasing order of liquidity), not because it does
Trade Finance and Letters of Credit Overview
Introduction to Letters of Credit Since the inception of international trade, the need for risk minimization of the transaction for both buyer and seller has been paramount. Letters of credit have been used for a long time to accomplish that purpose by facilitating payments in the form of guarantee. As LCs
Types of Revolving Loans
What is a Revolving Loan? Revolvers are some of the most common loan products available from commercial banking and corporate banking. Most people are familiar with the concept of a regular loan. The borrower takes out a fixed amount of money (the loan principal) that must be paid off along with the
Common Negative Covenants for Corporate Banking (and Bonds) and CoC
Interview with: Real Estate Commercial Banking VP
What candidates do commercial banks hire for in terms of degree and grades? I would say that the commercial banking sector assesses candidates from a fairly diverse background in terms of undergraduate degrees. That being said, a deeper understanding of business concepts, economics, accounting, and/or mathematics goes a long way in
Commercial Banking
Commercial Banking Overview Commercial banking is the business of offering deposit and credit (lending services) products to small, medium and large enterprises. Commercial banking divisions are set-up differently at each of the Canadian banks. Junior roles are either credit related, sales related or a combination of the two roles. Deposit taking is
Corporate Banking Deals and Transactions
Written by a corporate banker at a major North American bank What keeps corporate and commercial bankers busy when they are not doing annual reviews? Deals! Servicing a portfolio encompasses a variety of loan transactions, which are outlined below: New Debt/Credit Facility These are the most exciting transactions for corporate and commercial bankers. New