Management Notes

Management Notes

Reference Notes for Management

Finance

Finance

Banking Products – Different Types of Banking Products in Nepal | Management Notes

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Banking Products

Banking Products

Traditionally, Nepalese banks offered mass banking products. Deposit products most commonly used were Savings Bank Accounts, Current Accounts, and Term Deposit Accounts. The only leading products were cash credit and term loans. Banks, according to the Central Bank of Nepal guidelines, have little to do other than accept deposits at prices fixed by the Central Bank of Nepal and lend money at rates determined by the Central Bank of Nepal. Lending products were benchmarked by the Pine Lending Rate (PLR). However, PLR was largely determined by Nepal’s Central Bank. Additionally, demand drafts, telegraphic transfers, bankers checks, and internal transfer of funds were the only remittance products available.

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American Gaming Association (AGA) – Gaming Industry in United States (US) | Management Notes

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American Gaming Association (AGA)

American Gaming Association (AGA)

Background of American Gaming Association (AGA)

The American Gaming Association (AGA) is the national association for the gaming industry in the United States. In 1994, the organization was formed to promote, educate, and lobby on behalf of the gaming entertainment industry. AGA’s headquarters are located in Washington, DC. As a member organization, the AGA represents its members, their employees and customers in matters concerning federal legislation and regulatory issues, such as taxation, regulations, and travel. In addition to serving as an information clearinghouse for the gaming industry, it also provides timely, accurate gaming industry data to the public, the media, and decision makers. Major casino operators, financial services companies, gaming product suppliers, and state and regional gaming associations are members of the AGA.

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Brokers in Nepal – Top Brokers in Nepal | List of Share Brokers in Nepal

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Brokers in Nepal

Brokers in Nepal

Stockbrokers are licensed professionals who purchase and sell stocks on behalf of other investors. Stockbrokers are typically employed by brokerage firms or broker-dealers and are regulated by the Securities and Exchange Commission (SEC). Commissions are paid by stockbrokers, who usually receive a percentage of the trade’s value.

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Sinking Fund – Meaning, Formula , Advantages and Disadvantages | Financial Management

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Sinking Fund

Sinking Fund Meaning

Sinking funds are funds designed to pay off debts that have been created and set up specifically for that purpose. A certain amount of money is set aside regularly in the account and is used only for that purpose. It is often used by corporations to deposit money for bonds and to buy back issued bonds or parts of bonds before maturity. Moreover, the fund helps convince investors that the issuer won’t default on payments.

An effective sinking fund is meant to make it easier to pay off debt and to prevent defaults by having a sufficient amount of money to pay off the debt. Despite the fact that most bonds take several years to mature, it is always more convenient and easier to be able to reduce the principal amount before the maturity date, therefore lowering credit risk.

Sinking funds are well known to many people since even school children understand how important it is to save money for something that they want to own or purchase. During the school year, a class that wants to go to the zoo at the end can create a sinking fund that will grow toward the end of the year and can be used to pay for the field trip.

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Kathmandu Banking Office – Departments of Nepal Rastra Bank | Central Bank of Nepal

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Kathmandu Banking Office

Kathmandu Banking Office | Departments of Nepal Rastra Bank | Central Bank of Nepal Kathmandu Banking Office   Kathmandu Banking Office is the central office of Nepal Rastra Bank. Here are all the government accounts are handled. The management of foreign debt of domestic debt helps the government raise funds and make payments. Foreign exchange … Read more

Liquidity Risk – Risks in Commercial Banks | Financial Management

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Liquidity Risk

Liquidity Risk 

Liquidity determines whether an asset can be sold in the market within a reasonable timeframe without losing its value. Liquidity risk describes the risk associated with the inability to sell an investment quickly in cash. The liquidity risk will emerge when the intermediary has assets that cannot be converted into liquid funds quickly and hence requires the banks to make the payments. An unexpected withdrawal of funds or loss of insurance coverage may trigger a situation like this. 

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Interest Rate Risk – Risks in Commercial Banks | Financial Management

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Interest Rate Risk

Interest Rate Risk

Interest rate risk is another type of risk that must be managed. A rise in interest rates may cause a commercial bank’s liabilities to exceed its assets by an unexpected amount. Essentially, this risk arises from the relationship between the interest rate on assets (return) and the interest costs or charges on liabilities. The spread between these rates directly affects the profitability of a commercial bank. The goal of commercial banks is to have a wide spread in which the return on assets exceeds the cost of liabilities.

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Default Risk – Risks in Commercial Banks | Financial Management

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Default Risk

Default Risk

Default risk refers to the risk that the deficit spending units (DSUs) will be unable to meet the obligations they have agreed to under the liability they have sold. In other words, it deals with security issuers or the borrower’s failure to fulfill its obligations. As a result, it is closely related to the financial condition of the firm. An investor who invests in a company that defaults may lose all or part of their original investment. If the DSU defaults, the intermediary, whether it is a bank, a mutual fund, an insurance company, is exposed to the risk of default.

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