Нет. Bank and their involvement in social programmes ( fma & financing Forum East)

Forum East was the project that gave legal aid to families in the development.

Some time ago rumours that financial backing may shortly be reduced severely. Roscoe Heyward brought a proposal before the money committee to reduce the bank’s present commitment to Forum East by fifty per cent so that to put the bank’s funds to better use.

The split was evident in the line-up of the monetary policy committee.

Alex Vandervoot said that for generation banking had ignored public problems & that they had no right to opt out of Forum East.

Heyward insisted on adjusting the flow of funds & faced to opening substantial credit line for SuNatCo.

So the money policy committee divided two by two – Alex Vandervoot & Tom Straughan opposed to the cutback of funds, Roscoe Heyward & Orville Young in favour of it. The Jerome Patterton took Roscoe’s side.

FMA officially announced its statement to cut financing of future Forum East by half.

Margot Bracken, the legal council for the Association, asked to initiate some collective action with about a thousand people. These people organised the bank-in for 3 days. They brought all the money they could raise to help the bank through its time of trouble. People paid or withdrawn tiny amounts, about 5 dollars, asked questions or engaged tellers in conversations. That was brouht business to a standstill. Executives proposed to drown the downtown branch bank with in-and-out transactions. National-wide attention was focused on it. FMA shares closed two & a half points lower on Friday. At so called conference it was announced that bank restore full Forum East financing at once.

Нет. Loans. Steps in the lending process

The money deposited in a bank doesn’t lie idle. The bank lends it out at interest. Making loans is the principal economic function of banks. Bank accommodation contributes to the economic health of its region because bank loans support the growth and promote economic vitality. It is also a risky function because both external and internal factors can result in substantial losses of the bank.

To minimize and control the risk the bank works out its loan policy. Such a policy gives loan officers and the bank’s management guidelines in making loan decisions and a shaping the bank’s overall loan portfolio. It also lists guidelines for reviewing, evaluating and decision making on customer loan application.

There are several categories of bank loans that meet different objectives. They are real estate loans, financial institutions loans, commercial and industrial loans, loans to individuals, miscellaneous loans, lease financial receivables. The largest volume are real estate loans. A bank grants loans to individuals and businesses to construct and purchase homes, office buildings, shops, industrial structures. Next in importance are loans to individuals and families for living cost, medical expenses, automobile purchase, home appliances, vacation, education and so on.

The rate of interest charged by the bank is a price of borrowing money. A bank makes a loan for a certain amount, over a certain period, at a certain rate of exchange.

When a customer decides to request a loan an interview with a loan officer will follow. It gives the potential borrower the opportunity to explain his credit needs for one thing and offers a chance for the bank’s loan officer to assess the customer’s sincerity of purpose. The major question to deal with is whether or not the customer can service the loan.

The key factors in decision making and evaluating a loan application are capacity, character, capital, collateral, environment control. Capacity proves the customer’s proper authority, character concerns the customer’s honesty, collateral aspect of a loan deals with the assets and other valuables that the customer pledges behind the loan and capital defines the borrower’s ability to generate capital adequate and sufficient to replay the loan. Control factor is essential in assessing whether changes in regulation could adversely affect the borrower and whether the loan request meets the bank’s standards for loan quality.